$20 sale
At 2.9% plus $0.30, fees are $0.88, which is 4.4% of the sale.
Rates for credit card processing
Rates for credit card processing, explained
Typical rates for credit card processing run from 1.5% to 3.5% per transaction.
How that rate is built matters as much as the number. The Avendo Fee Guide explains the two main pricing models, how ticket size changes your real rate, and how Avendo routes each transaction to the processor offering the best available rate at that moment.
Last updated November 2026. Published by Avendo.
What are typical credit card processing rates?
Most small businesses pay 1.5% to 3.5% per transaction, according to NerdWallet. Online rates published by Zapier range from 2.9% plus $0.30 to 3.49% plus $0.49 per U.S. transaction across the services it reviews, with another at 3.3% plus $0.30.
A rate quote usually has two parts: a percentage of the sale and a fixed fee per transaction. Both affect your real cost, and the fixed fee matters most on small sales.
Flat-rate vs interchange-plus: which costs less?
| Model | How it works | Published example | Usually best for |
|---|---|---|---|
| Avendo routing | Each transaction sent to the connected processor offering the best available rate in real time | No price stated; no direct bill from Avendo | Online stores that want the best available rate on every sale |
| Interchange-plus | Actual interchange passed through, plus a consistent markup | 0.4% plus 8 cents markup (NerdWallet) | More than $10,000 a month (U.S. Chamber of Commerce CO) |
| Flat-rate | Interchange, assessments, and markup combined into one price | 2.6% plus 10 cents (NerdWallet) | Below roughly $50,000 a month for simplicity (JIM) |
How ticket size changes your real rate
$75 sale
At 2.9% plus $0.30, fees are $2.475, which is 3.3% of the sale.
$200 sale
At 2.9% plus $0.30, fees are $6.10, which is 3.05% of the sale.
Same rate, very different results. That is why your effective rate, not the headline rate, is the number to compare. Try your own numbers in the processing cost estimator.
How to read a rate quote before you sign
Identify the model
Is it flat-rate, interchange-plus, or something else? Ask in writing.
Find the markup
On interchange-plus, the markup is the part you can compare and negotiate.
List every other fee
Monthly, PCI, chargeback, and termination fees all add to your total.
Model your own month
Run your real volume and average sale through the quote to get an effective rate.
Or skip the single-quote gamble. Avendo connects your checkout to multiple processors and routes each sale to the best available rate. Compare all options in the best credit card processing for small business online guide.
Questions about processing rates
What is flat-rate credit card processing?
Flat-rate pricing combines interchange, assessments, and the processor markup into one set price for every card. NerdWallet gives 2.6% plus 10 cents as an example. The U.S. Chamber of Commerce CO notes some flat-rate plans charge 2.9% plus 30 cents for online store purchases no matter what card is used. Flat rates are simple but rarely the lowest at higher volumes.
What is interchange-plus pricing?
Interchange-plus pricing passes the actual interchange cost through to you and adds a consistent processor markup on top. NerdWallet gives 0.4% plus 8 cents as an example markup. Because you see the real cost of each card separately from the markup, interchange-plus is easier to compare between processors and often cheaper for businesses with steady monthly volume.
Which is cheaper, flat-rate or interchange-plus?
Interchange-plus is usually cheaper once your card volume grows. The U.S. Chamber of Commerce CO says it typically offers lower rates to companies processing more than $10,000 a month. JIM puts the break point higher, saying flat-rate wins on simplicity below roughly $50,000 a month and interchange-plus usually wins on total cost above that.
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.
Can I negotiate credit card processing rates?
Yes, the processor markup is often negotiable, while interchange is set by the card networks and is not. The U.S. Chamber of Commerce CO notes that companies that negotiate rates through interchange-plus pricing may pay lower processing fees. Bring your recent statements, monthly volume, and average sale size to any negotiation.
Is online credit card processing more expensive than in person?
Usually, yes. Online payments are card-not-present transactions, which carry more fraud risk and higher interchange. Published examples show the gap: the U.S. Chamber of Commerce CO cites 2.9% plus 30 cents for online store purchases, while NerdWallet gives 2.6% plus 10 cents as a typical flat-rate example and Payment Nerds cites 2.6% to 2.9% plus $0.10 in person.
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.