Credit Card Processing Fees: What Small Businesses Should Know in 2025

Credit card processing fees typically cost a business 1.5% to 3.5% of each transaction’s total. For example, you’d pay $1.50 to $3.50 in credit card fees for a sale of $100.

How much you’re actually charged depends on factors like the card type and whether the transaction was made in person or online. Ultimately, the best credit card processing company for you will offer fees that are manageable based on your business’s sales trends and volume.

Here's how credit card processing fees work and how your business can lower its rates.

Credit card processing fees vary based on the transaction type (online versus in-person), the customer's credit card company and the markup your payment processor charges.

Flat-rate payment processing companies combine interchange fees, assessment fees and markups into a set amount (e.g., 2.6% plus 10 cents). Interchange-plus processors, on the other hand, charge a consistent markup (e.g., 0.4% plus 8 cents), but pass varying interchange fees to the merchant.

Here's a rundown of what you can expect to pay with different processors.

Credit card processing fees generally fall into the following categories:

Use this credit card processing fee calculator to see how monthly payment processing costs will vary based on transaction rates and how you accept credit card payments (e.g., online versus In person).

If you have a payment processor in mind, enter the provider's rates in the calculator — or an estimate of average rates for interchange-plus pricing — to estimate how much the service will cost each month.

Here's how you can save money on credit card processing fees.

Small businesses can pass credit card fees to customers by implementing a cash discount program or credit card surcharge. With a cash discount program, customers receive a small discount for choosing to pay with cash instead of card. Credit card surcharges are similar in that the business tacks an extra fee on purchases made with a card.

In both cases, businesses need to follow specific rules and regulations. For example, credit card surcharge programs aren’t legal in Connecticut, Massachusetts and Puerto Rico. Additionally, remember to consider your customer base and how you’ll roll out the program.

It's best to work with a processor that doesn't charge statement fees, minimum monthly processing fees, PCI compliance fees or terminal lease fees. But if that's not an option, and you see these fees on your statement, pick up the phone and ask if any of those charges can be waived or avoided in the future.

Your chargeback rate is the percentage of transactions disputed by customers — for instance, because of unauthorized card use, billing errors or unresolved disputes about the quality of the items purchased. Chargeback fees can be costly, often $20 to $100 per dispute on top of refunding the complete transaction, and high rates of chargebacks can cause providers to increase your transaction fees.

Minimize chargebacks by using contactless and chip card readers to reduce your liability in case of credit card fraud, and by offering return policies, good customer service and quick responses to any customer complaints.

Collect quotes from multiple processors. If you find more favorable pricing elsewhere, take the quote to your current processor. The company might match the offer or provide lower rates. If that doesn't happen, the quotes can help you decide whether the savings are substantial enough to justify switching processors.