Advertiser Disclosure

๐ŸŽ Get a free credit card reader from Square today!

A Visual Guide To Credit Card Processing Fees & Rates [Infographic]

  • 27 comments
  • Updated on:
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Amad Ebrahimi
Amad has worked in the eCommerce and online marketing world since 2002. He started as an eBay seller, then slowly graduated to building & marketing his own websites and consulting others to do the same. He founded Merchant Maverick out of frustration with all the misinformation and shady tactics that he encountered when trying to find a merchant account for his and his client's businesses. He's the man behind most of the merchant account reviews, and articles posted on MerchantMaverick.com. Have any questions related to credit card processing? Talk to him.
Amad Ebrahimi

We've done in-depth research on each and confidently recommend them.

We've done in-depth research on each and confidently recommend them.

Leave a comment

27 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Niti

    Hi Amad: Why can I not use Stripe to get a POS terminal which should create a merchant account and processes all my payments and links it to my bank account.

    Why do merchant account providers exists separate from payment gateways in this day and age? Am I missing something?

    Thanks.

      Jessica Dinsmore

      Hi Niti,

      Thanks for your questions! Stripe opted to focus more on internet commerce. It didn’t see a need to add an in-person payment option until recently, and it’s only for developers who are building their own POS apps.

      As for merchant account providers and gateway providers existing separately — sometimes its easier for a processor to add a feature that merchants want by partnering with an existing, established gateway than trying to build that feature out from scratch on their own proprietary platform. It’s fairly common for merchant account providers to work with partner service providers, but some opt for a proprietary approach because they want control over the whole experience and have the resources to invest in maintaining it.

        Kris K

        Hello,
        We are a non-profit organization and do fund raising activities to benefit the kids in a public school. Lot of our donors have asked if we take credit cards for donations. We are in the process of exploring and figuring out if there is any way we could do this without paying any huge transaction fees. Any ideas and suggestions would be greatly appreicated.

        Thanks,
        Kris

          This comment refers to an earlier version of this post and may be outdated.

          Jessica Dinsmore

          Hi Kris,
          We actually have an article about non-profit processing discounts!

            This comment refers to an earlier version of this post and may be outdated.

            We've done in-depth research on each and confidently recommend them.

            Bill R Atnip

            Just starting on line looking at affiliate marketing but the problem I’m seeing with gateways, merchant accounts and various sites or offers they do not integrate together very well. I did some selling on Ebay so have Pay Pal set up already some can work with that some need to go through 1 or 2 other gateways with their own set up monthly and fees thats another bite out of the cookie. I realize there is a cost to doing business but there needs to be some profit left. Authorize Net seem to be most prevalent. But isn’t there a one size fits all. May not be your area but from your Bio may have some thoughts. Are auto responders going to be the same way? Thanks for any input.

              This comment refers to an earlier version of this post and may be outdated.

              Jessica Dinsmore

              Hi Bill,
              I’d suggest Paypal. They have a quite broad compatibility due to their popularity, so that may be what you are looking for. Best of luck!

                This comment refers to an earlier version of this post and may be outdated.

                Sonia

                Hello Jim,

                what about the FX rate across the transaction flow ? Is it something the merchant can negotiate with the PSP vendor?

                  This comment refers to an earlier version of this post and may be outdated.

                  Iris Rivera

                  Thanks for all the information
                  I will have to study word for word and #โ€™s for #โ€™s for I am new to this area. Will like to master it. Your opinion I will be running a Airbnb vacation for Tourist up to 20 checkin a month or less. What bracket should I be in and what device would you recommend, app on my iPhone or ??? Desperate need of information
                  Thank you in advance

                    This comment refers to an earlier version of this post and may be outdated.

                    Jessica Dinsmore

                    Hi Iris,
                    Congratulations on your exciting new business venture! We actually don’t know much about how airbnb works, but my understanding is that when you sign up with airbnb, the payments are integrated; you don’t select a processor. I think your best bet would be to log into your account and consult with airbnb directly and also be sure to check out the Q&A in their help forum. I hope that helps!

                      This comment refers to an earlier version of this post and may be outdated.

                      Abner

                      Hi Amad! Great content. This site is the most informative I’ve seen online. Thank you!

                      I’m developing a mobile payment app for restaurants. I’d like to know if the credit card fees will also apply to my app when the customer send the payment to the restaurant. Are you familiar with how some of the customer mobile payment apps for restaurant work?

                      Regards,

                      Abner

                        This comment refers to an earlier version of this post and may be outdated.

                        Jessica Dinsmore

                        Hi Abner,
                        Your fees will be entirely dependent on the gateway you connect to your app. If you aren’t sure how that works for apps, I’d suggest looking in Stripe’s developer documentation. Best of luck to you!

                          This comment refers to an earlier version of this post and may be outdated.

                          Abner

                          Hi Jessica:

                          We have a mobile app that is integrated into the restaurant POS system so customers can pay the check from their phones at the table. We will be sending the payment to the restaurant. The customer will also pay $0.35 every time she pays the restaurant. I’m looking for a payment processor for those $0.35 per transaction. All payment processing companies I’ve talked to charge a percentage + a flat fee (usually $0.25-$0.35). I’m looking for a processing company that only charges a percentage (not the flat fee). Also, I was considering being my own payment processing company but honestly I don’t know what it takes.

                            This comment refers to an earlier version of this post and may be outdated.

                            Jessica Dinsmore

                            Hi Abner,

                            Thanks for writing! Iโ€™d suggest that the $0.35 is just added on to the original bill and processed as part of the main payment, as a surcharge. Finding an affordable processor for the $.35 charges would be quite a challenge, so I think doing as I suggested will be your best bet. I hope that helps!

                              This comment refers to an earlier version of this post and may be outdated.

                              Vicki Jayne

                              We currently are with Secure Merchants and looking to change as they are unable to help us with many of our challenging situations. Price isn’t always everything. Previously we were with Central Payment as our processor, and they have local agents who come out, at the time we went with them, we also purchased 2 HIOPOS machines not even 5 years ago, they no longer support the HIOPOS and we just paid them off!! over 10K after all said and done and now no longer supported. We are thinking of going to a tablet and card reader but don’t know if this is what we should do. Our HIOPOS machines are giving us trouble and no one seems able to help….CIG owns them and you have to book an appt which they charge $79-129/hr and have to wait a week for an appt!!! Great deal of good that is when your system goes down and a person is standing looking at you waiting to pay with a credit card! We are a winery/gift shop/cafe which does an average of 20K per month currently. Please let me know your suggestions asap as I am so frustrated and have stumbled across your sit in searching for a new cc company. Thanks SO much!!

                                This comment refers to an earlier version of this post and may be outdated.

                                Chloe Bahal

                                Hi Vicki,

                                Thank you for reaching out, it can definitely be frustrating! I am going to send you an email right now so please keep an eye out for it.

                                  This comment refers to an earlier version of this post and may be outdated.

                                  We've done in-depth testing of each and confidently recommend them.

                                  A.C.

                                  I live in Canada, Ny website is considered high risk. We do some tech support. Definitely having a difficult time finding a merchant account. Any info is much appreciated! Thanks!

                                    This comment refers to an earlier version of this post and may be outdated.

                                    Chloe Bahal

                                    Hi A.C.,

                                    I would try Durango Merchant Services, Payline Data, and Instabill. I hope this helps and if you have further questions please let me know.

                                      This comment refers to an earlier version of this post and may be outdated.

                                      Steve Capt

                                      Very helpful page and site, thank you. One fee I didn’t see mentioned is “Authorization Fee”. I currently get dinged a $.10 per authorization fee in addition to all the other fees listed above. This is from a pure merchant account, I have a separate gateway and shopping cart with their own fees as well.

                                      Is a separate authorization fee “normal”? Thanks in advance.

                                        This comment refers to an earlier version of this post and may be outdated.

                                        Ciera

                                        Can you recommend the best deal for a small restaurant processing about $10,000-15,000 per month? We are getting the hard sell through Sekure Merchant Services to go with North American Bank and aren’t sure we are seeing all of the fine print.
                                        We currently don’t have a contract and prefer to not sign any contracts if possible.

                                          This comment refers to an earlier version of this post and may be outdated.

                                          Chloe Bahal

                                          Hi Ciera,

                                          I would recommend taking a look at Dharma Merchant Services.

                                            This comment refers to an earlier version of this post and may be outdated.

                                            Albert Tavasci

                                            Mr. Ebrahimi, I have reviewed just about all websites that review merchant services and your’s has been the most informative. The “Breakdown of Fees” inforgraphics enlightened me immensly on how the financial process works. Great job!

                                              This comment refers to an earlier version of this post and may be outdated.

                                              Mike b

                                              I had a company tell me they were the host cell division First Data. They tell me that there is a wholesale platform for interchange rates and a retail platform 4 interchange rates. I thought all interchange rates were fixed directly from Visa Mastercard at 7. Can you tell me if there is truly a host cell interchange platform?

                                                This comment refers to an earlier version of this post and may be outdated.

                                                Linda Tan

                                                How do I release myself from a three year lease of the terminal. I wasn’t reading the fine prints of the contract and now I’m trapped. Thanks

                                                  This comment refers to an earlier version of this post and may be outdated.

                                                  Chloe Bahal

                                                  Hi Linda,

                                                  Unfortunately you will need to wait for the contract to run out or pay the early termination fee if your processor has one. If you decide to switch to another processor, they might cover the cost for breaking the contract with your existing processor, but that is something you will have to discuss with them.

                                                    This comment refers to an earlier version of this post and may be outdated.

                                                    Jeannette

                                                    Wow. And thank you!

                                                      This comment refers to an earlier version of this post and may be outdated.

                                                      Nance

                                                      How do I dispute billbacks when processor won’t/can’t provide information about the specific incidents? What I generally find on my statement are the codes called ” tran cleared as CPS retail key entry debit/PR” or “missing/invalid transaction date too old”, or “tran cleared at check card/debit/prepaid”.

                                                        This comment refers to an earlier version of this post and may be outdated.

                                                        Jim Cassidy

                                                        Great question Nance. Your current provider should be able to show you what those transactions are and the rate at which you are charged. That billback system is FDMS or First Data front end and generally they set merchants up with the billbacks so they can hide and pad fees. One way you can get a ballpark charge is to look on the first pages of your statement and find your average ticket for that card type ie: MasterCard, Visa and so on. Once you find your average ticket, take the avg ticket and times it by the number of transactions that category shows. Then divide the dollar amount of the fees that were charged by the avg ticket times the transactions.. But remember this is only a ball park.. Average ticket x transaction quantity(example, rewards 2) so ie: avg tik $240.00 x number of trans 5 = $1200.00. Then Fee of $ 30.00 (rewards 2 Visa) divided by $1200.00 then hit % key on calculator for 2.50% Bottom line is if your current provider can’t provide you some info about the rates you should get one that can. Hope this helps,
                                                        Jim

                                                          This comment refers to an earlier version of this post and may be outdated.

                                                        Leave a Reply

                                                        Your email address will not be published. Required fields are marked *

                                                        Your Review

                                                        Comment moderation is enabled. Your comment may take some time to appear.
                                                        Please read the "User Review and Comment Policy" before posting.

                                                        Share

                                                        Featured Offer: We Recommend QuickBooks ๐ŸŽ‰

                                                        Get 50% QuickBooks Online for a limited time!

                                                        Take it for a spin with a free trial.

                                                        Try QuickBooks Today

                                                        We Recommend Fattmerchant ๐Ÿ†

                                                        Fattmerchant is one of our top picks for credit card processing!

                                                         

                                                         

                                                        We love Fattmerchant's predictable pricing and excellent service.

                                                        Get Started

                                                        Get started with no commitment today.

                                                        We Recommend Brex Corporate Card for Startups ๐Ÿ†

                                                        Brex Corporate Card for Startups is one of our top picks for business credit cards!

                                                         

                                                         

                                                        For a limited time get 50,000 rewards points when you spend $1000 with Brex.

                                                        Get Started

                                                        Get started with no commitment today.

                                                        We Recommend Fattmerchant ๐Ÿ†

                                                        Fattmerchant is one of our top picks for credit card processing!

                                                         

                                                         

                                                        We love Fattmerchant's predictable pricing and excellent service.

                                                        Get Started

                                                        Get started with no commitment today.

                                                        We Recommend PaymentCloud ๐Ÿ†

                                                        PaymentCloud is one of our top picks for credit card processing!

                                                         

                                                         

                                                        We love PaymentCloud's predictable pricing and excellent service.

                                                        Get Started

                                                        Get started with no commitment today.

                                                        โญ๏ธ Featured Promo! โญ๏ธ

                                                        Sign up now and qualify for a limited time deal!

                                                        Standard Plan: One month free ($29.95 value)
                                                        Plus Plan: Two months free ($159.90 value)
                                                        Pro Plan: Three months free ($899.85 value)

                                                        Learn More

                                                        At BigCommerce

                                                        We Recommend Helcim ๐Ÿ†

                                                        Helcim is one of our top picks for payment processing!

                                                         

                                                         

                                                        Helcim has exceptional service and an advanced platform that we highly recommend for businesses in Canada and the US. Get three months free when you sign up with Helcim through our links!

                                                        Get Started

                                                        Get started with no commitment today.

                                                        We Recommend PaymentCloud ๐Ÿ†

                                                        PaymentCloud is one of our top picks for credit card processing!

                                                         

                                                         

                                                        We love PaymentCloud's predictable pricing and excellent service.

                                                        Get Started

                                                        Get started with no commitment today.

                                                        We Recommend Fattmerchant ๐Ÿ†

                                                        Fattmerchant is one of our top picks for credit card processing!

                                                         

                                                         

                                                        We love Fattmerchant's predictable pricing and excellent service.

                                                        Get Started

                                                        Get started with no commitment today.

                                                        Get 60% Off FreshBooks โœจ

                                                        FreshBooks is offering 60% off of their accounting and invoicing software for six months to help support businesses during COVID-19.

                                                        Start For Free

                                                        At FreshBooks

                                                        We Recommend ShopKeep POS ๐Ÿ†

                                                        ShopKeep POS is one of our top picks for Point of Sale software!

                                                         

                                                         

                                                        ShopKeep is offering free eCommerce tools and free online ordering for all existing and new customers for the next 3 months!

                                                        Get Started

                                                        Get started with no commitment today.

                                                        We Recommend Stamps.com ๐Ÿ†

                                                        Stamps.com is one of our top picks for shipping software!

                                                         

                                                         

                                                        Start a 4-week free trial with Stamps.com and get $5 in free postage to test it out. No promo code required.

                                                        Get Started

                                                        Get started with no commitment today.

                                                        Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are authorโ€™s alone.

                                                        Sign up for the Maverick Newsletter

                                                        • We occasionally send out emails with special offers.