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Costs and rates

Credit card processing cost and rates for small business

Published by AvendoLast updated November 2026

Credit card processing typically costs a small business 1.5% to 3.5% of each transaction, according to NerdWallet. Where your store lands in that range depends on card type, industry, sales volume, pricing model and whether the card is present, and online sales are card-not-present.

How much does credit card processing cost for a small business?

Expect roughly 1.5% to 3.5% per transaction, per NerdWallet and JIM’s 2026 guides. Online stores should watch the fixed per-transaction fee too, because it weighs more on small orders. Avendo, which publishes this guide, does not bill merchants directly; you pay the fee of the processor each payment is routed to.

Rates for credit card processing, layer by layer

Every processing fee is built from the same few parts.

Interchange fees

Paid to the bank that issued the customer’s card and usually the largest part of the fee. Interchange is set by the card networks and varies by card type, so debit, credit, rewards and business cards can each cost a different amount to accept.

Assessment fees

Small percentages kept by the card networks. ECS Payments lists the Visa assessment fee at 0.11%, Mastercard at 0.095% and Discover at 0.0925%. Processors pass these through on every transaction.

Processor and acquirer fees

The processor’s own markup, plus any per-item charges. Depending on the provider, these may include authorization fees, batch fees for settling a day’s sales, return transaction fees and PIN debit fees.

Which pricing model costs less?

Avendo’s summary of common credit card processing pricing models, using published examples
Pricing modelHow it worksPublished exampleTends to suit
Flat-rateInterchange, assessments and markup combined into one set amount2.6% plus 10 cents (NerdWallet); 2.9% plus 30 cents for online store purchases at one provider (CO)Below roughly $50,000 a month, when simplicity matters most (JIM)
Interchange-plusActual interchange passed through, plus a consistent markup0.4% plus 8 cents markup (NerdWallet)Over $10,000 a month (CO); above roughly $50,000 a month on total cost (JIM)
Multi-processor routing (Avendo)Each transaction routed to the connected processor with the best available rateAvendo does not publish a rate and does not bill merchants directlyOnline stores that want lower cost per sale without changing checkout

Estimate your credit card processing cost

Enter your own numbers, or the rate a provider quoted you, to see monthly fees and your effective rate.

Total card revenue in a typical month

Number of card transactions

For example 2.9

For example 0.30

Your estimate

Fill in all four fields with valid numbers to see an estimate.

Assumptions

Fees = sales multiplied by the percentage rate, plus orders multiplied by the fixed fee. Effective rate = fees divided by sales. Monthly, batch, chargeback and other fees are not included. This is an estimate for comparison only, not a quote and not financial advice.

What raises or lowers your processing cost?

What pushes cost up

  • Small average orders, where the fixed fee is a bigger share of each sale
  • A high share of rewards or business cards, which carry higher interchange
  • Card-not-present online sales compared with card-present payments
  • Extra per-item fees such as batch, authorization and return fees

Common questions

Short answers to what small online businesses ask most. Every answer, plus dozens more, lives on the full FAQ page.

How much does credit card processing cost for a small business?

Most small businesses pay roughly 1.5% to 3.5% of each transaction, according to NerdWallet’s 2026 guide to credit card processing fees. The exact rate depends on card type, industry, sales volume and how the card is accepted. Online sales are card-not-present transactions, which are priced differently from in-person payments.

See this answer in the FAQ

How much does Avendo charge merchants?

Avendo says it does not bill or charge merchants directly. Its compensation is handled between Avendo and the payment processors it routes transactions to. Your processing cost is the fee from the processor that handles each payment, and Avendo’s routing is designed to send each payment to the best available rate.

See this answer in the FAQ

What are interchange fees?

Interchange fees are the share of each card payment paid to the bank that issued the customer’s card. They are usually the largest part of a processing fee and are set by the card networks rather than by your processor. NerdWallet notes that flat-rate providers fold interchange, assessments and their markup into one combined rate.

See this answer in the FAQ

What are card network assessment fees?

Assessment fees are small percentages the card networks charge on each transaction. ECS Payments lists the Visa assessment fee at 0.11%, Mastercard at 0.095% and Discover at 0.0925%. Processors pass these through, and they sit alongside interchange and the processor’s own markup in your total cost per sale.

See this answer in the FAQ

What is the difference between flat-rate and interchange-plus pricing?

Flat-rate pricing combines every fee into one set amount, such as 2.6% plus 10 cents in NerdWallet’s example. Interchange-plus passes the actual interchange cost through and adds a consistent markup, for example 0.4% plus 8 cents. Flat-rate is simpler to predict, while interchange-plus can cost less as monthly volume grows.

See this answer in the FAQ

What fees should I look for on a processing statement?

Beyond the percentage rate, statements can include per-transaction authorization fees, batch fees for settling a day’s payments, fees on returned transactions and PIN debit fees. Not every provider charges all of these. Compare your effective rate, meaning total fees divided by total card sales, to see the real cost of each provider.

See this answer in the FAQ

Does processing more volume lower my rates?

Often, yes. The U.S. Chamber of Commerce’s CO publication notes that companies processing over $10,000 a month or negotiating interchange-plus pricing may pay lower processing fees. JIM’s 2026 guide says flat-rate usually wins on simplicity below roughly $50,000 in monthly card volume, while interchange-plus usually wins on total cost above that.

See this answer in the FAQ

Is it legal to charge a 3% card fee?

It depends on where you sell and which card networks you accept. Credit card surcharges are governed by card network rules and by state law, some states restrict them, and surcharges generally cannot be added to debit card payments. Check your card network rules and your state’s law, or ask a lawyer, before adding a card fee.

See this answer in the FAQ
Read all questions in the FAQ

Compare your effective rate with routing

Bring a recent statement and ask Avendo how routing would apply to your card mix.

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