Credit card processing costs: what you pay and why fees are so high
Credit card processing typically costs a business 1.5% to 3.5% of each transaction, and the exact rate depends on card type, how the card is accepted, and the pricing model. Avendo adds no merchant fee on top: processors pay its 10 cent per transaction fee, and Avendo routes each payment to the best available rate.
Last updated: November 2026
How much does credit card processing cost?
Most businesses pay 1.5% to 3.5% per transaction. Online payments sit toward the higher end because the card is not present. With Avendo, the merchant pays only the processing fees of whichever connected processor offers the best available rate on each transaction, and nothing to Avendo.
What makes up a credit card processing fee?
| Fee part | Who receives it | Notes |
|---|---|---|
| Interchange | The card-issuing bank | Set by Visa, Mastercard, American Express, and Discover; applies to all merchants |
| Assessments | The card networks | Set by the networks; charged through your processor |
| Processor markup | Your payment processor | The part that differs between processors and the part competition can lower |
| Avendo Services Fee | Avendo | 10 cents per transaction, billed to the processor, never to the merchant |
Why are credit card processing fees so high?
Three costs stack on every card payment: interchange to the issuing bank, network assessments, and the processor's markup. Card-not-present payments, the kind every online store takes, generally carry higher interchange than tapped or dipped cards because the risk of fraud is higher.
The part merchants control least is time. Once a business signs with one processor, there is little reason for that markup to fall.
What raises or lowers your rate?
- Card type: rewards and business cards usually carry higher interchange.
- Card present or not: online payments generally cost more than in-person ones.
- Pricing model: flat rate bundles everything (example: 2.6% plus 10 cents), while interchange-plus adds a fixed markup (example: 0.4% plus 8 cents).
- Volume and average ticket: fixed per-transaction fees weigh more on small tickets.
- Competition: a rate set once tends to stay put; a rate decided per transaction does not.
Sources: NerdWallet: Credit Card Processing Fees, A 2026 Guide
What is my effective processing rate?
Enter two numbers from last month's processing statement. The calculator divides fees by sales and shows what a lower rate would mean over a year. As a reference point, at $50,000 a month in card payments, a 0.5 point difference is $250 a month, or $3,000 a year.
How is Avendo paid?
Avendo's published pricing is short. It is compensated through one Avendo Services Fee of 10 cents per transaction, billed to the payment processor. Merchants never receive an invoice, bill, or direct charge from Avendo, and there are no monthly charges or separate platform fees.
Interchange and assessments are set by the card networks and charged by the processor, not Avendo. Avendo's role is to help each transaction reach the best available processor rate. Avendo: Credit Card Processing Pricing.
Who should pick a different provider?
Businesses that take most payments in person, and stores on Shopify, Wix, Square, or GoDaddy, cannot use Avendo today. Businesses with very low online volume may also see little difference from per-transaction routing, since there are fewer transactions to compete for.
Everyone else selling online through a supported checkout can check in a few minutes. See the industry directory for vertical-specific numbers.
Common questions
See all 46 questions in the FAQ- How much does credit card processing cost?
- Credit card processing typically costs a business 1.5% to 3.5% of each transaction. The exact rate depends on the card type, whether the card is present, and the processor's pricing model. Avendo's aim is to place each online transaction with the connected processor offering the best available rate.
- Why are credit card processing fees so high?
- Processing fees stack several costs: interchange paid to the card-issuing bank, assessment fees set by the card networks, and the processor markup. Online payments often cost more because the card is not present. Fees also stay high when a merchant is tied to one processor, since nothing pushes that rate down after signup. Avendo targets that last part.
- What is the difference between flat-rate and interchange-plus pricing?
- Flat-rate pricing bundles interchange, assessments, and markup into one set amount, such as 2.6% plus 10 cents. Interchange-plus passes through the actual interchange and adds a consistent markup, such as 0.4% plus 8 cents. Interchange-plus is usually easier to audit; flat rate is simpler to read.
- Does a small rate difference really matter?
- Yes, because it compounds with volume. At $50,000 a month in card payments, a difference of 0.5 percentage points equals $250 a month, or $3,000 a year. That is why Avendo focuses on the best available rate on every single transaction rather than a one-time negotiation.
- Does Avendo charge merchants a fee?
- No. Avendo never sends merchants an invoice, a monthly charge, or a separate platform fee. Its compensation is an Avendo Services Fee of 10 cents per transaction, billed to the payment processor. The merchant still pays normal processing fees to the processor, including card network interchange and assessment fees.
- Does Avendo guarantee savings?
- No. Avendo's goal is the best available processor rate on each transaction, and its own calculators label results as estimates, not quotes or promises of savings. Actual costs depend on card mix, pricing, and which processors approve the account. To see what applies to your business, contact Avendo or start its application.
Ready to see what your business could save?
Once you know how Avendo routes payments and shows pricing, the next step is simple: ask Avendo how much your business could save on card processing fees. Small online shops and enterprise merchants use the same contact form.