Chapter 02Last updated: November 3, 2026Published by Avendo
What makes up a credit card processing fee?
Every credit card processing fee is made of three parts: interchange for the card-issuing bank, an assessment for the card network, and a markup for the payment processor.
The Avendo Fee Field Guide breaks each part down so you can read your statement line by line. Interchange and assessments are set by banks and networks, so the processor markup is usually the part that changes between offers. Knowing which is which shows you where savings are possible and where they are not.
Which part of the fee can I actually change?
You can usually change only the processor markup and any monthly fees. CO by the U.S. Chamber of Commerce reports that interchange fees range from 1% to 3% and are nonnegotiable, and network assessments are set by the card brands. That is why choosing the processor, and how each transaction is routed, matters most.
- InterchangePaid to: Card-issuing bank1% to 3% (CO)
- AssessmentPaid to: Card network0.13% to 0.15% (CO)
- MarkupPaid to: Payment processorSet by processor
Interchange: the issuing bank's share
Interchange is the largest part of most card fees. It is paid to the bank that issued your customer's card and varies by card type, such as debit, standard credit, rewards or business cards, and by how the payment is taken. In the US, CO puts interchange at 1% to 3%. In the UK, Stored reports interchange is capped at 0.2% for consumer debit and 0.3% for consumer credit cards.
Assessments and scheme fees: the network's share
Card networks such as Visa and Mastercard charge their own fee on each transaction. CO reports base assessment costs of 0.13% to 0.15% of each transaction in the US. For the UK, Stored describes scheme fees of approximately 0.02% to 0.2% on top of interchange. These are small but apply to every payment.
Markup: the processor's share
The markup is what the payment processor keeps. On interchange-plus pricing it is shown separately, for example NerdWallet's 0.4% plus 8 cents. On flat-rate pricing, such as NerdWallet's 2.6% plus 10 cents example, the markup is bundled together with interchange and assessments, so you cannot see it directly. Avendo routes each online transaction to the connected processor offering the best available rate, which targets this layer.
Fee parts side by side
| Fee part | Paid to | Published range or example | Negotiable? |
|---|---|---|---|
| Interchange | Card-issuing bank | US: 1% to 3% (CO). UK caps: 0.2% debit, 0.3% credit (Stored) | No (CO) |
| Assessment or scheme fee | Card network | US: 0.13% to 0.15% (CO). UK: about 0.02% to 0.2% (Stored) | No, set by the network |
| Processor markup | Payment processor | Example: 0.4% + 8 cents (NerdWallet) | Often, and it differs by processor |
How to read each fee part on your statement
Find the pricing model
Look for a single rate (flat) or a pass-through line plus a markup (interchange-plus).Total the interchange lines
Interchange often appears as many categories by card type. Add them together.Total the network fees
Look for lines naming Visa, Mastercard or scheme fees.Find the markup and fixed fees
Add the processor percentage, per-transaction and monthly charges.Check the total
Divide all fees by card sales and enter that effective rate in the credit card processing rates and fees calculator.
Questions merchants ask
What is a credit card processing fee?
A credit card processing fee is the amount a business pays each time it accepts a card payment. It usually combines interchange paid to the card-issuing bank, assessment fees paid to the card network, and a markup kept by the processor. NerdWallet reports the total typically lands between 1.5% and 3.5% of each transaction.
What is an interchange fee?
Interchange is the part of the fee paid to the bank that issued your customer's card. CO by the U.S. Chamber of Commerce reports that interchange fees range from 1% to 3% and are nonnegotiable. In the UK, Stored reports interchange is capped at 0.2% for consumer debit cards and 0.3% for consumer credit cards.
What is an assessment fee?
An assessment fee is the charge card networks such as Visa and Mastercard add to each transaction. CO by the U.S. Chamber of Commerce reports base assessment costs ranging from 0.13% to 0.15% of each transaction. For the UK, Stored describes scheme fees of approximately 0.02% to 0.2% charged on top of interchange.
What is a processor markup?
The markup is the part of the fee your payment processor keeps for handling the transaction. Unlike interchange, the markup is set by the processor, so it is the piece that differs most between providers. NerdWallet gives 0.4% plus 8 cents as an example of a consistent interchange-plus markup.
What is an effective rate?
Your effective rate is your total processing fees divided by your total card sales, shown as a percentage. It folds percentage fees, per-transaction fees and monthly fees into one number, which makes it the fairest way to compare two offers. The calculator on this site's home page works it out from your own figures.
Can I negotiate credit card processing rates?
You can often negotiate the processor markup and monthly fees, but not interchange: CO by the U.S. Chamber of Commerce notes that interchange fees are nonnegotiable. Bring your effective rate and volume figures to any conversation, and compare offers on the same basis so a lower headline rate does not hide higher fixed fees.
Want the markup layer handled automatically?
Avendo connects your checkout to multiple PCI DSS-compliant processors and routes each transaction to the one offering the best available rate in real time.