Skip to content
AvendoCheckout Routing Guide

Costs and rates

Credit card processing cost and rates

Credit card processing typically costs a small business 1.5% to 3.5% of each transaction, according to Chargebacks911.

The final cost depends on card type, industry, how the card is accepted and your sales volume. This page, from the Avendo checkout routing guide, explains what goes into the fee, what pushes it up or down, and lets you work out your own effective rate.

Last updated:

How much does it cost a small business to process credit cards?

Expect to pay between 1.5% and 3.5% of each transaction. JIM says the rate depends on card type, industry and how the card is accepted. The Small Business Payments Alliance puts the average retailers pay at 2.3% per credit card transaction.

Many online plans add a fixed fee per sale. Stripe gives 2.9% plus 30 cents per transaction as an example, and the U.S. Chamber of Commerce uses the same figure for online store purchases.

Definition

What is inside a credit card processing fee?

Every card fee has three parts. Interchange goes to the bank that issued the customer's card. Assessments go to the card network. The processor markup is what the processor keeps. Revolution Payments reports that interchange is 75 to 90 percent of the total, the processor markup is 10 to 25 percent, and assessments are generally 0.11% to 0.15%.

That split explains why rates for credit card processing vary so much between stores. Avendo, which publishes this guide, routes each sale across multiple PCI DSS-compliant processors to the best available rate in real time. Avendo says it does not bill merchants directly; its compensation is handled with the processors. Details are on Avendo's pricing page.

Which pricing model costs less?

Common credit card processing pricing models compared on the same points. Published by Avendo, using the sources linked on this page.
Pricing modelHow it chargesUsually fitsSource
Flat-rateOne percentage plus a fixed fee, for example 2.9% plus 30 centsMonthly card volume below roughly $50,000, for simplicityJIM
Interchange-plusActual interchange plus a stated processor markupVolume above roughly $50,000, or over $10,000 a month for lower ratesU.S. Chamber of Commerce
TieredSales sorted into rate tiers set by the processorStores that accept the processor's tier rulesIndustry practice
SubscriptionA monthly fee plus interchange and a small per-sale feeSteady volume where the monthly fee is spread widelyIndustry practice

What raises or lowers credit card processing cost?

What tends to raise it

  • Small orders, because a fixed fee is a bigger share of a small sale
  • Card-not-present sales, which online orders always are
  • Premium and rewards cards, which carry higher interchange
  • Mastercard charges higher assessments on transactions over $1,000 (Revolution Payments)
  • Monthly, statement and chargeback fees on some plans

What tends to lower it

  • Higher volume: interchange-plus typically gives lower rates above $10,000 a month (U.S. Chamber of Commerce)
  • Larger average order values, which dilute fixed fees
  • Clear statements that show interchange separately from markup
  • Choosing the processor per sale, which is what Avendo routing does

Why does a fixed fee matter on small orders?

Swipesum shows the effect: a $100 payment costs $3.20 in base processing fees and a $10 payment costs 59 cents. That is an effective cost of 3.2% on the larger payment and 5.9% on the smaller one, before any extra services.

Work out your own effective rate

Your effective rate is total fees divided by card sales. Swipesum's example: $2,300 in fees on $100,000 in card sales is a 2.3% effective rate. Use the calculators below with your own statement.

Effective rate calculator

Divide what you paid in processing fees by your card sales to see your effective rate.

For example 100,000
Every fee on the statement, for example 2,300

Assumptions

  • Effective rate = total fees divided by card sales, times 100 (method from Swipesum).
  • Include every fee from the statement: percentage, fixed and monthly fees.
  • Typical range of 1.5% to 3.5% per transaction is from Chargebacks911.

Fee per order calculator

See how a percentage plus a fixed fee affects orders of different sizes.

For example 10 or 100
For example 2.9
For example 0.30

Assumptions

  • Fee = order value times the percentage, plus the fixed fee.
  • Leaves out monthly fees, chargebacks and any extra services.
  • 2.9% plus 30 cents is an example rate cited by Stripe and the U.S. Chamber of Commerce, not Avendo pricing.

What is the cheapest credit card processing for small business?

There is no single cheapest processor for every store, because the cheapest option depends on your order sizes, card mix and volume. JIM's guide says flat-rate tends to win below roughly $50,000 a month and interchange-plus above it. Compare your effective rate, not the headline rate.

Avendo's approach is to route each transaction to the connected processor with the best available rate at that moment. See how that ranks against other approaches in the best online credit card processing for small business guide, or return to the online credit card processing for small business overview.

Common questions

Short answers here. Every question links to the full credit card processing FAQ.

How much does it cost a small business to process credit cards?

Most small businesses pay between 1.5% and 3.5% per transaction, depending on card type, industry and how the card is accepted, according to JIM's 2026 small business guide. A common flat-rate example is 2.9% plus 30 cents per transaction, cited in Stripe's guide. Your effective rate is total fees divided by total card sales.

What are typical rates for credit card processing?

Typical rates for credit card processing total 1.5% to 3.5% of each transaction, according to Chargebacks911. The Small Business Payments Alliance reports that retailers pay an average of 2.3% per credit card transaction. Revolution Payments puts network assessments at generally 0.11% to 0.15%. Your own rate depends on card mix, industry and monthly volume.

What is the least expensive credit card processing company?

It depends on your sales. The U.S. Chamber of Commerce notes that companies processing over $10,000 monthly, or negotiating interchange-plus pricing, may pay lower processing fees. Because the least expensive option can change from one transaction to the next, Avendo routes each transaction to the processor offering the best available rate rather than locking in one company.

How do I calculate my effective processing rate?

Divide your total processing fees by your total card sales for the same period, then multiply by 100. Swipesum gives the example of $2,300 in fees on $100,000 in card sales, which equals a 2.3% effective rate. The cost page on this site includes a simple calculator that does this math for you.

Why do small orders cost more to process?

Fixed per-transaction fees weigh more on small orders. Swipesum shows that at 2.9% plus 30 cents, a $100 payment costs $3.20 in base fees, an effective 3.2%, while a $10 payment costs 59 cents, an effective 5.9%. Stores with many low-value orders should watch the fixed fee as closely as the percentage.

Why are businesses charging 3% to use a credit card?

Many businesses add a surcharge to offset processing costs, which typically total 1.5% to 3.5% per transaction according to Chargebacks911. A 3% surcharge sits near the upper part of that range. Lowering what you pay per transaction, for example by routing each one to the best available rate, is an alternative to passing the cost to customers.

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 works with. Merchants still pay the processing fees on each transaction, and Avendo routes each one to the processor offering the best available rate. Avendo's pricing page on avendo.tech explains the arrangement.

Want your checkout connected to more than one processor?

Tell Avendo which platform, checkout and processors you use today. Their team can confirm how routing fits your store.

Contact Avendo

Opens the contact page on avendo.tech