Chapter 01Last updated: November 3, 2026Published by Avendo
Credit card processing rates and fees, calculated in plain numbers
Credit card processing rates and fees typically cost a business 1.5% to 3.5% of each transaction, usually plus a flat fee per sale, according to NerdWallet.
The Avendo Fee Field Guide turns that range into your own number. Enter your monthly card sales, average sale and the rate on your statement, and the calculator below shows your monthly fees, yearly fees and effective rate. Avendo publishes this guide to help small online businesses see what card acceptance really costs.
How do I calculate payment processing fees?
To calculate payment processing fees, multiply your monthly card sales by the percentage rate, add the per-transaction fee times your number of transactions, then add any fixed monthly fees. Divide that total by your card sales to get your effective rate, the single number that lets you compare any two offers.
Monthly fees = (sales × rate) + (transactions × per-sale fee) + monthly fees
Five steps to calculate payment processing fees from your statement
Pull 90 days of statements
Clearly Payments recommends computing your figures for the last 90 days before you change anything, so one unusual month does not mislead you.Note total card sales
Add up the card volume for each month and take the average.Count transactions
Use the transaction count on your statement, or divide sales by your average sale.Add up every fee
Include percentage fees, per-transaction fees and monthly or gateway charges.Divide fees by sales
The result is your effective rate. Enter it as Scenario A above and compare any quote as Scenario B.
What is a credit card processing fee?
In the Avendo Fee Field Guide, a credit card processing fee means the total a business pays to accept one card payment. It has three parts. Interchange goes to the bank that issued the card. Assessment or scheme fees go to the card network, such as Visa or Mastercard. The markup goes to the payment processor that moves the transaction.
Only the markup is set by the processor, which is why offers differ. CO by the U.S. Chamber of Commerce notes that interchange fees are nonnegotiable. Read the full breakdown in what makes up a credit card processing fee.
What are typical credit card processing rates and fees?
- Total fees: 1.5% to 3.5% of each transaction, plus a flat per-transaction fee (NerdWallet; CO by the U.S. Chamber of Commerce).
- Interchange: 1% to 3%, and nonnegotiable (CO by the U.S. Chamber of Commerce).
- Assessment fees: base costs of 0.13% to 0.15% of each transaction (CO by the U.S. Chamber of Commerce).
- Flat-rate example: 2.6% plus 10 cents. Interchange-plus markup example: 0.4% plus 8 cents (NerdWallet).
- UK: 1.5% to 3.5% per transaction depending on provider, card type and channel (Stored).
Every statistic with its conditions is collected in payment processing fees by the numbers.
Flat-rate, interchange-plus or routing: which costs less?
A flat rate is simplest at low volume, interchange-plus is usually cheaper once volume is steady, and multi-processor routing sends each payment to whichever connected processor has the best available rate at that moment. The table compares all three on the same criteria.
| Approach | How the fee is set | Published example | Who it tends to suit |
|---|---|---|---|
| Flat-rate | One bundled rate covering interchange, assessments and markup | 2.6% + 10 cents (NerdWallet) | Low or irregular volume that values a predictable rate |
| Interchange-plus | Interchange passed through at cost plus a fixed markup | 0.4% + 8 cents markup (NerdWallet) | Steady volume where a lower markup adds up |
| Multi-processor routing (Avendo) | Each transaction sent to the connected processor with the best available rate in real time | No merchant price published; Avendo does not bill merchants directly | Online businesses that want to keep their checkout and compare processors automatically |
See the worked costs for each model in flat-rate vs interchange-plus pricing.
What does $10,000 a month in card sales cost?
At $10,000 a month with a $40 average sale, a business runs about 250 transactions. On NerdWallet's flat 2.6% plus 10 cents example, that is $260 plus $25, or $285 a month and $3,420 a year, an effective rate of 2.85%.
On interchange-plus, the 0.4% plus 8 cents markup example adds $60 a month. Interchange of 1% to 3% adds $100 to $300, and assessments of 0.13% to 0.15% add $13 to $15, for a total of roughly $173 to $375 depending on your card mix. Your statement shows where you actually fall.
Where does a card payment go, and where are fees added?
Each online card payment travels from your checkout to a processor, through the card network, to your customer's bank and back. Avendo sits between your existing checkout and several PCI DSS-compliant processors, and chooses the processor with the best available rate for each transaction in real time.
- CheckoutYour existing checkout page
- Avendo routingPicks the best available rate in real time
- ProcessorOne of several connected processorsFee: Markup
- Card networkVisa, Mastercard and othersFee: Assessment
- Issuing bankYour customer's card bankFee: Interchange
How we chose
The comparison above judges each approach on the same three points: how the fee is set, the example price published for it, and the kind of business it tends to suit. Rates come from NerdWallet and CO by the U.S. Chamber of Commerce. Avendo's row uses only facts Avendo states about its own service; no savings figure is claimed because none has been published.
Published by Avendo. This page was written by Avendo, the business that publishes this guide. It is not an independent review. Read the full methodology.
Questions merchants ask
What are typical credit card processing rates and fees?
Typical credit card processing rates and fees range from 1.5% to 3.5% of each transaction, usually plus a flat per-transaction fee, according to both NerdWallet and CO by the U.S. Chamber of Commerce. Where you land depends on the pricing model, the card type, and whether the payment is taken online or in person.
How do I calculate payment processing fees?
Multiply your monthly card sales by the percentage rate, then add the per-transaction fee multiplied by your number of transactions, then add any fixed monthly fees. Divide the total by your card sales for your effective rate. For example, $10,000 at 2.6% plus 10 cents across 250 sales is $260 plus $25, or $285.
How much does credit card processing cost a small business?
Most small businesses pay between 1.5% and 3.5% of card sales, per NerdWallet, plus any per-transaction and monthly fees. As a worked example, $10,000 a month in sales at a flat 2.6% plus 10 cents, with a $40 average sale, costs $285 a month, or $3,420 a year. Use the calculator with your own statement figures.
Who has the cheapest credit card processing fees?
No single provider is cheapest for every business, because the rate you pay depends on your card mix, average sale and sales channel. A flat rate can suit small, simple volumes, while interchange-plus can cost less as volume grows. Avendo routes each online transaction to the connected processor offering the best available rate at that moment.
How do I avoid credit card processing fees?
You cannot remove processing fees entirely if you accept cards, but you can lower them. Compare your effective rate against other offers, pick a pricing model that fits your volume, cut unused monthly fees, and send each payment to the lowest-cost route. Clearly Payments shows that cutting your effective rate by 0.20% saves $2,000 a year on $1,000,000 in card volume.
Is it legal to charge a 3% card fee?
Whether you can add a 3% card surcharge depends on where you trade and on card network rules, and the answer differs between countries and, in the US, between states. Some places ban surcharges or cap them at your actual cost of acceptance. Confirm with your payment processor and current local rules before adding one at checkout.
Are there any free credit card processing services?
Card processing always carries interchange and network fees, so truly free processing for the merchant is rare. Avendo does not bill or charge merchants directly; its compensation is handled between Avendo and the payment processors it works with. The processor that handles each transaction still applies its processing rate, which Avendo's routing aims to keep at the best available level.
Know your number? See what routing could do with it.
Avendo connects your existing checkout to multiple payment processors and routes each transaction to the best available rate, with clearer pricing reports. Small businesses are its first priority.