Fee Education Guide

Credit Card Processing Fees Explained

Interchange-plus vs. flat-rate, average fees by industry, and how to know if you're overpaying — explained in plain English.

What Makes Up Your Processing Rate?

Every credit card transaction has three layers of fees. Most businesses only see the total — here's what's actually happening.

Interchange Fees

Set by card networks (Visa, Mastercard, Amex). These are non-negotiable and go to the card-issuing bank. They vary by card type, industry, and transaction method.

Typical range: 1.15% + $0.05 to 2.40% + $0.10 per transaction

Assessment Fees

Charged by card networks (Visa, Mastercard, etc.) for using their payment network. Small but unavoidable.

Typical range: 0.13% – 0.15% per transaction

Processor Markup

The fee your payment processor charges on top of interchange and assessments. THIS is the part you can negotiate — and where SwipeSaving saves you money.

Varies widely — this is where most businesses overpay

Pricing Models Compared

How your processor structures your rate matters as much as the rate itself.

Flat-Rate Pricing

Pros
  • Simple and predictable
  • Easy to understand
Cons
  • Almost always more expensive
  • You subsidize low-cost transactions
  • Processors profit heavily on debit cards
Example: 2.9% + $0.30 on every transaction regardless of card type
RECOMMENDED

Interchange-Plus Pricing

Pros
  • Transparent — you see actual interchange cost
  • Lower effective rate for most businesses
  • Best for businesses processing over $5,000/month
Cons
  • Slightly more complex to read on statements
Example: Interchange + 0.25% + $0.10 per transaction

Tiered Pricing

Pros
  • Easy to quote
Cons
  • Least transparent model
  • Processors classify transactions to maximize profit
  • Most businesses overpay significantly
Example: "Qualified" 1.79%, "Mid-Qualified" 2.29%, "Non-Qualified" 3.49%

Average Processing Fees by Industry

Compare your current rate to industry benchmarks. If you're paying more, you're likely overpaying.

Industry
Average Rate
Why It Varies
Retail
1.5% – 2.0%
Card-present, low fraud risk
Restaurants
1.8% – 2.3%
Mix of card-present and delivery
E-Commerce
2.3% – 2.9%
Card-not-present, higher fraud risk
Healthcare
2.0% – 2.5%
HIPAA-compliant gateways add cost
Salons & Spas
1.9% – 2.4%
Mostly card-present transactions
High-Risk
3.0% – 5.0%
Higher fraud/chargeback rates

Rates reflect effective blended rates for interchange-plus pricing. Flat-rate pricing will typically be 0.5–1% higher.

Find Out What You Should Actually Be Paying

Send us your last statement — we'll do a free analysis and show you exactly where you're overpaying.