Interchange
Paid to the bank that issued the card. Set by the card networks and varies by card type and how the card is used. Rewards and corporate cards cost more. You cannot negotiate it.
Credit card processing cost
Credit card processing cost for small businesses
Credit card processing typically costs a small business 1.5% to 3.5% of each sale.
That range comes from NerdWallet and JIM. In the Avendo Fee Guide, we break the cost of credit card processing into its parts so you can see what you actually pay, then let you estimate your own monthly fees. Avendo routes each transaction to the processor offering the best available rate and does not bill merchants directly.
Last updated November 2026. Published by Avendo.
How much does credit card processing cost?
The average cost of credit card processing is 1.5% to 3.5% per transaction, according to NerdWallet. JIM gives the same range and says it depends on card type, industry, and how the card is accepted.
Online stores usually sit higher in the range because card-not-present sales carry more fraud risk. The U.S. Chamber of Commerce CO cites a flat 2.9% plus 30 cents on online store purchases as an example.
What makes up the cost for credit card processing?
Network assessments
Small fees the card brands charge on each transaction. Like interchange, they are fixed by the networks rather than by your processor.
Processor markup
What your processor adds on top. NerdWallet gives 0.4% plus 8 cents as an interchange-plus example. This is the part that differs most between providers and is often negotiable.
What raises or lowers your credit card processing cost?
| Factor | Pushes cost up | Pushes cost down |
|---|---|---|
| Where the card is used | Online, card not present | In person, card present |
| Card type | Rewards and corporate cards | Basic debit cards |
| Average sale size | Many small sales (fixed fees weigh more) | Larger average sales |
| Monthly volume | Low volume on interchange-plus | Higher volume on interchange-plus |
| Processor choice | One processor for every sale | Routing each sale to the best available rate |
Small tickets matter more than most owners expect. At 2.9% plus $0.30, a $20 online sale costs $0.88 in fees, or 4.4% of the sale, while a $200 sale costs $6.10, or about 3.05%. Clearly Payments flags businesses with lots of sub-$50 tickets as the ones most affected.
Estimate your monthly credit card processing cost
Enter your own numbers, or start from a published rate example. Commas and dollar signs are fine.
Your estimate
Fill in all four fields with valid numbers to see your estimated fees.
Assumptions
Fees = monthly card sales times the percentage fee, plus transactions times the fixed fee. Monthly account, chargeback, and other fees are not included. Yearly fees assume the same month repeats 12 times.
This is an estimate only, not a quote and not financial advice. Your processor statement is the final word.
What is the most cost effective credit card processing?
The most cost effective credit card processing matches your pricing model to your volume and keeps the markup low on every sale. The U.S. Chamber of Commerce CO says interchange-plus typically offers lower rates above $10,000 a month. JIM puts the crossover near $50,000 a month.
Avendo adds another lever for low-cost credit card processing: instead of one processor for every sale, it routes each transaction to the connected processor offering the best available rate. See how routing works or return to the best credit card processing for small business online guide.
What does Avendo cost a merchant?
No direct bill from Avendo
Avendo does not state a price on its homepage and says it does not bill or charge merchants directly. Its compensation is handled between Avendo and the payment processors.
Clearer pricing reports
Merchants get clearer pricing and processing reports, which make it easier to track your effective rate over time. Transactions are processed at the rates of the connected processors.
Questions about credit card processing cost
How much does credit card processing cost for a small business?
Credit card processing typically costs a small business 1.5% to 3.5% of each transaction, according to NerdWallet and JIM. Where you land in that range depends on card type, industry, sales volume, and whether the card is used online or in person. Online card payments usually sit toward the higher end because they carry more fraud risk.
What is the average cost of credit card processing?
Most published guides put the average cost of credit card processing between 1.5% and 3.5% per transaction. JIM notes the rate depends on card type, industry, and how the card is accepted. A useful personal average is your effective rate: total processing fees divided by total card sales over the last few months.
How much do banks charge businesses for card transactions?
The card-issuing bank earns interchange, a fee set by the card networks that varies by card type and how the card is used. Interchange is combined with network assessments and the processor markup into the total you pay, which NerdWallet puts at 1.5% to 3.5% of each transaction. Rewards and corporate cards usually carry higher interchange than basic debit cards.
Is there such a thing as no cost credit card processing?
Processing fees always exist somewhere, even when a plan is marketed as no cost. Usually the fee is shifted to customers through a surcharge or a cash discount program. Avendo does not bill merchants directly, but card transactions are still processed at the rates of the connected processors. Always ask who pays the processing fee before you sign.
What is an effective rate in credit card processing?
Your effective rate is your total processing fees divided by your total card sales, shown as a percentage. It captures every fee, not just the headline rate. Clearly Payments shows why it matters: for a business doing $1,000,000 a year in card volume, cutting the effective rate by 0.20% saves $2,000 per year.
What fees should I look for on a processing statement?
Look for the percentage charged per sale, any fixed fee per transaction, monthly or account fees, PCI compliance fees, chargeback fees, and early termination terms. Adding them all up gives your true cost. Avendo provides merchants with clearer pricing and processing reports, aimed at making these costs easier to understand than a typical statement.
How much does Avendo cost?
Avendo does not state a price on its homepage, and it says it does not bill or charge merchants directly. Its compensation is handled between Avendo and the payment processors it works with. Transactions are processed at the rates of the processors involved, with each one routed to the processor offering the best available rate. Contact Avendo for details on your setup.
Sources cited on this page
See what routing could do for your checkout
Avendo works with your existing checkout and routes every sale to the processor offering the best available rate. It does not bill merchants directly.