What Is The Average Fee For Credit Card Processing?

The average fee for credit card processing varies depending on various factors, but it’s usually between 1.5%-3.5%. Some factors that impact the fee include the type of business, processing method, transaction volume, and which payment processing provider a company uses.

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With that in mind, here are a few of the fees that make up standard credit card processing fees:

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• Interchange Fees: Interchange fees are fees credit card networks like Visa, Mastercard, and American Express charge when they process transactions. Usually, interchange fees are a percentage of the transaction amount plus a flat fee. Interchange fees can be higher or lower depending on the card type (e.g., rewards cards often have higher interchange fees) and the type of transaction (e.g., in-person vs. online).
• Assessment Fees: Credit card networks charge assessment fees, usually a small percentage of a transaction total. 
• Processor Markup: Sometimes, payment processing companies or merchant services providers like Square, Stripe, and PayPal add their markup to the interchange and assessment fees. While the markup varies from provider to provider, it is usually negotiable and is often a combination of a percentage of the transaction amount, a fixed per-transaction fee, or a monthly fee.

Other Fees

In addition to the above, credit card processors sometimes charge other fees, including statement fees, PCI compliance fees, chargeback fees, and more. 

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As a business, you can save money on credit card processing fees by carefully reviewing and comparing the terms and fees offered by different credit card processing providers to find the best solution for your needs. 

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