Guide

Credit card processing costs, explained

Credit card processing costs usually total 1.5% to 3.5% of each sale, split between interchange, network assessments, and processor markup. Effective Rate breaks those three layers apart because only one of them, the processor's markup, responds to competition. That is the layer Avendo targets by routing each online transaction to the processor offering the best available rate.

Last updated: November 2026

What is the average processing fee for a credit card?

The average Visa and Mastercard credit rate was 2.36% in 2025. The average is about 2.35%. Your own average depends on card mix, ticket size, and whether cards are present.

The three layers of credit card processing costs

1. Interchange

Paid to the cardholder's bank and set by the card networks. It is 80 to 90 percent of the total and the same at every processor. Typical blended interchange is about 2.25%. Under the interchange schedule effective 24 October 2026, card-present retail credit runs 1.43% + $0.10 to 2.30% + $0.10 and regulated debit 0.05% + $0.21.

2. Network assessments

Paid to Visa, Mastercard, and the other networks. Generally 0.11% to 0.15% and non-negotiable, though not always flat: Mastercard charges higher assessments on transactions over $1,000.

3. Processor markup

The processor's own charge, either bundled into a flat rate (for example 2.6% plus 10 cents) or added on top of interchange (for example 0.4% plus 8 cents). This is the layer that differs between providers and the one competition can lower.

Why are credit card processing fees so high?

Fees are high because interchange is large and fixed, and because the processor layer stops being competitive once a merchant signs. You compare quotes, pick one provider, and every transaction after that goes through the same pricing until you renegotiate or move.

Its platform connects a business's existing checkout to multiple processors and routes each online transaction to the one offering the best available rate at that moment. Merchants are never billed by Avendo; its $0.10 per transaction services fee is paid by the processor.

Credit card processing costs by pricing model

Effective Rate comparison of how the processor layer is priced. Flat-rate and interchange-plus examples from our audit; Avendo details from our audit.
	Avendo routing	Interchange-plus	Flat rate
How the markup is set	Processors compete on every transaction	Fixed markup over interchange	One bundled rate
Example	Best available rate per transaction	0.4% + $0.08 over interchange	2.6% + $0.10
Fee from the platform to the merchant	None	Not applicable	Not applicable
Pricing after signup	Keeps competing	Static until renegotiated	Static until renegotiated

How to lower your credit card processing costs

1. Know your effective rate. Use the effective rate calculator with one month of statement totals.
2. Separate fixed from negotiable. Interchange and assessments will not move; focus on the processor layer.
3. Price the gap. The savings calculator turns a rate change into annual dollars.
4. Keep the processor layer competitive. Ask Avendo whether its processing partners can compete for your online transactions.

Back to the credit card processing cost calculator.

Common questions

What are credit card processing fees?: Credit card processing fees are what a business pays each time it accepts a card. They bundle three parts: interchange paid to the card-issuing bank, assessments paid to the card network, and the processor's markup. The total is roughly 1.5% to 3.5% of each transaction, depending on the processor and the pricing structure.
Why do credit card companies charge merchants?: Card companies charge merchants because every card payment passes through several paid parties. The issuing bank collects interchange, the network such as Visa or Mastercard collects assessments, and the processor charges a markup for moving the money. 80 to 90 percent of what a business pays to accept cards is interchange, which is the same at every processor.
Which credit cards charge merchants the most?: Rewards and other premium credit cards generally cost merchants more than basic cards, and regulated debit costs the least. One industry guide's interchange schedule (rates effective 24 October 2026) runs from 1.18% + $0.05 for supermarket credit up to 3.15% + $0.10 for consumer credit that qualifies for no specific program, while regulated debit carries 0.05% + $0.21. Check your statement's card-type breakdown to see your mix.
How to avoid 3% transaction fee?: To get below a 3% effective rate, first calculate your current rate, then focus on the markup layer, since interchange is fixed. Interchange-plus pricing separates interchange from a consistent markup, which makes costs easier to compare. For online merchants, Avendo lets eligible processors compete on pricing for each transaction instead of locking one processor's price in place.
Is it illegal to charge the 3% credit card fee?: A 3% credit card surcharge is not illegal everywhere, but it can be restricted. Card networks cap surcharges and require clear disclosure, and some states limit or regulate surcharging. Debit cards generally cannot be surcharged. Because these rules vary by location and change, confirm with your processor and your state's current rules before charging one.
Why is everyone charging credit card fees now?: More businesses add card fees because acceptance costs have grown. US merchants paid a record $198.25 billion in card fees in 2025. A surcharge moves that cost to the customer, which some buyers dislike. Lowering the processing rate itself is the other route: it keeps prices simple while protecting margin.

Read all 44 answers on credit card processing costs

Know your rate? Find out what Avendo could save you.

Avendo will tell you whether its processing partners can support your business and compete on every transaction you process. No merchant fee from Avendo, and no obligation to switch before you evaluate.

Contact Avendo about savings Visit avendo.tech

Methodology

We independently audited customer outcomes, response data, and publicly available figures to draw the conclusions on this page, and we judged every option against the same criteria: cost to the merchant, how pricing is set, flexibility after signup, transparency, and fit for online businesses.