Credit Card Processing Fees in 2026

Credit card processing fees are what a store pays for transactions to let customers make purchases using a credit card. This generally includes a percentage of the order amount plus a fixed fee.

A 2025 Federal Reserve analysis put average processing fees at 1.5% to 3% of the transaction amount. Your actual cost depends on your payment processor’s pricing and the cards your customers use. Businesses pay these charges, but many recover some or all of the cost through product prices or permitted credit card surcharges. Payment rules vary by location too. Some jurisdictions require retailers to accept cash, including Massachusetts, Colorado, and New York City.

This guide explains the different credit card processing fees, shows what you pay on a $100 sale, and compares the costs of credit cards and other payment methods.

What are credit card processing fees?

Credit card processing fees are charges businesses pay to accept credit card payments. Also called credit card transaction fees, merchant fees, or processing fees, they pay for services provided by card issuers, card networks, and payment processors.

Here’s how a credit card payment gets processed:

1. Authorization. Your payment processor sends the transaction to the customer’s card issuer through the card’s network. The issuer checks the account and available credit, then approves or declines the purchase. Approval reserves the amount but doesn’t transfer money.
2. Capture and settlement. Your business captures the approved payment. The transaction details pass between the processor, network, and banks. They calculate the charges and transfer funds between the financial institutions.
3. Funding. Your payment provider pays the proceeds into your account according to its payout schedule. Processing fees are deducted from the payment or billed separately, depending on your agreement.

3 main components of processing fees

There are three main parts that make up a processing fee.

1. Interchange fees (the issuing bank’s cut)

Card networks set interchange rates. The bank processing your sale pays the interchange fee to the customer’s card issuer, then passes that cost on to your business through your processing charges.

Card-present (CP) payments, such as chip or contactless purchases, generally have lower rates because the payment credentials can be verified at checkout. Card-not-present (CNP) payments, including online purchases and manually entered card details, generally cost more due to the higher fraud risk. Your pricing plan determines how these differences affect your bill.

2. Assessment fees (the card network’s cut)

Assessment fees go to the card network, such as Visa or Mastercard. Networks set these charges separately from interchange, and processors pass them on to businesses.

An assessment is one network charge. Your bill can also include authorization fees or international processing charges. The network fee schedule shows which charges apply to each transaction.

3. Processor markup (the payment processor’s cut)

Processor markups are charged by the company that processes your payments.

Providers charge a percentage, a fixed amount per transaction, a subscription fee, or a combination of these. Their pricing can bundle services such as fraud screening and customer service, or charge for them separately.

Shopify Payments charges a card processing rate based on your Shopify plan. When Shopify Payments is your sole payment provider, Shopify doesn’t add third-party transaction fees to orders. Your Shopify subscription fee still applies.

What determines your rate?

Your processing costs depend on these factors:

• Card type and network. Networks have different rate schedules. Premium rewards cards may carry higher interchange fees than basic consumer cards.
• How the card is accepted. Chip and contactless purchases generally cost less to process than online or manually entered payments.
• Business type. Your merchant category code identifies your industry. Networks assign different rates to categories such as grocery stores and clothing retailers.
• Transaction size and volume. Fixed fees take a larger percentage of small purchases. Higher sales volume can qualify your business for lower processor markups or specific network pricing programs.
• Commercial and B2B cards. Business, corporate, and purchasing cards have separate interchange fees. The transaction’s data and eligibility for a particular program affect the rate.

The Visa interchange fee schedule as of April 2026 shows rates by card, industry, and acceptance method. Your provider’s pricing determines how those underlying costs are reflected on your bill. For example, Helcim’s volume discounts reduce its markup as monthly processing volume increases.

How much are credit card processing fees?

Credit card processing fees fall around 1.5% to 3% of the purchase amount, the Fed notes, but your total bill also depends on fixed charges, monthly fees, and your pricing model.

Smaller businesses with limited or uneven sales can find flat-rate pricing easier to budget. The provider bundles interchange, network charges, and its markup into a quoted rate for each transaction category. Online and in-person payments can have different rates.

Higher-volume businesses can benefit from interchange-plus pricing. The provider passes through the underlying card costs and adds its markup. A lower negotiated markup can produce larger savings as sales increase. Compare the total monthly cost, including any subscription or account fees.

Several charges can push your effective rate toward the high end of the typical range or above it:

• Add-on fees. Gateway subscriptions, chargeback fees, or other account charges increase the total you pay.
• Downgraded transactions. A payment that fails a network’s qualification rules can receive a higher interchange rate. Missing transaction data or late settlement can trigger a downgrade.
• Premium or international cards. Premium cards can carry higher rates. Cards issued abroad can also attract international processing charges.

Review your provider’s fee schedule alongside the network qualification rules. Under flat-rate pricing, some underlying cost differences are already bundled into your rate.

What you pay for a $100 transaction

For a rate quoted as a percentage plus a fixed fee, calculate the cost this way:

Processing fee = Transaction amount x Percentage rate + Fixed fee

For example, Shopify’s Basic plan lists these US rates:

These calculations exclude the Shopify subscription and any other applicable charges.

To measure your cost across all card sales, calculate your effective rate:

Effective rate = Total processing charges / Total card sales x 100

For example, $300 in processing charges on $10,000 in card sales produces a 3% effective rate.

Interchange and assessment fees by card network

Card networks have multiple interchange categories. The examples below show selected US retail rates from spring 2026 fee schedules.

Processor markup and additional network charges are added to these underlying costs.

Some data, including all assessment figures, is based on Fiserv’s April 2026 fee schedule, published by First Hawaiian Bank. Mastercard adds a 0.01% assessment on transactions of $1,000 or more. Other network charges may apply.

American Express fees can be higher for some purchases, but its rates overlap with those of other networks. OptBlue retail pricing varies by purchase amount: eligible domestic card-present purchases of $75 or less carry a 1.45% + 10¢ rate. Purchases above $1,000 carry a 2.5% + 10¢ rate. Your OptBlue provider sets the final merchant rate.

Card network rates change periodically. Check the effective date and qualification rules when comparing schedules.

How credit card fees compare with debit, ACH, and wallet fees

Payment methods use different networks and pricing arrangements. Compare the merchant fee, payout timing, and refund terms for each option.

With Shop Pay Installments, you receive the order payment minus the applicable fee. Affirm collects the customer’s installments. Compare that fee with your regular card rate and the sales you receive through the payment option.

Credit card processing fees by vendor

The table below compares published US pricing. Shopify rates cover Basic, Grow, and Advanced plans. Helcim and Finix charge interchange and network fees in addition to the markups shown.

Shopify Payments

Shopify Payments connects to your store’s checkout and Shopify POS. You can accept cards and eligible digital wallets, then track payments, payouts, and chargebacks in the Shopify admin.

• Pricing structure: A Shopify plan is required, but Shopify Payments has no separate monthly or setup fee.
• In-person processing: Basic plan charges 2.6% + 10¢; Grow plan charges 2.5% + 10¢; Advanced plan charges 2.4% + 10¢.
• Online processing: Standard card rates are 2.9% + 30¢ on Basic plan, 2.7% + 30¢ on Grow plan, and 2.5% + 30¢ on Advanced plan. Premium cards and international transactions have higher rates.

Shopify’s third-party transaction fee is a separate charge on eligible payments processed through external providers, added to the provider’s processing fees. Shopify Plus stores qualify for the third-party transaction fee waiver when Shopify Payments is their sole payment provider.

PayPal

PayPal offers online checkout, invoicing, and in-person payments. Its standard online checkout has no monthly or setup fee.

• Processing fees: Standard card payments cost 2.99% + 49¢; PayPal payments cost 3.49% + 49¢. Other checkout products have different rates.
• Additional costs: International commercial transactions add 1.5%. Currency conversion and chargeback fees depend on the transaction. Optional services can carry separate charges.

Square

Square accepts in-store, online, and mobile payments through its POS system and checkout tools. Its plans are priced per location:

• Free plan: $0 monthly; 2.6% + 15¢ in person and 3.3% + 30¢ online.
• Plus plan: $49 monthly; 2.5% + 15¢ in person and 2.9% + 30¢ online.
• Premium plan: $149 monthly; 2.4% + 15¢ in person and 2.9% + 30¢ online.

These online rates apply to standard online payments. Payments processed through Square’s online API cost 2.9% + 30¢ across these plans. Hardware and optional software add-ons cost extra.

Stripe

Stripe offers online payments and in-person payments through Stripe Terminal. Standard payments pricing has no monthly or setup fee.

• In-person processing: 2.7% + 5¢ for domestic cards.
• Online processing: 2.9% + 30¢ for domestic cards.
• Additional costs: Add 1.5% for international cards. Online payments add 0.5% for manual entry and 1% when currency conversion is required. In-person tap to pay costs 10¢ and optional encryption is 5¢ per transaction. Hardware costs extra.

In countries where Shopify Payments is available, Stripe isn’t offered as a separate Shopify payment gateway. Stripe is Shopify Payments’ banking partner, and Shopify Payments reporting stays in the Shopify admin.

Helcim

Helcim uses interchange-plus pricing, with lower markups as monthly processing volume increases.

• Pricing structure: No monthly, setup, or PCI compliance fees.
• Processing fees: For monthly volume up to $50,000, add 0.4% + 8¢ in person or 0.5% + 25¢ online and keyed in to interchange and network fees.
• Additional costs: Hardware costs extra. Helcim charges $15 for a lost chargeback dispute and refunds the fee if you win.

Finix

Finix combines a monthly membership with interchange, network fees, and transaction charges.

• Pricing structure: Standard direct merchant pricing is $250 monthly. Custom pricing is available above $1 million in annual processing.
• Processing fees: Add 15¢ for Visa, Mastercard, and Discover, or 0.3% + 15¢ for American Express. Transaction fees apply to successful and failed transaction and authorization attempts.
• Additional costs: Disputes cost $30. PCI noncompliance costs $35 monthly until resolved.

Understanding payment processing pricing models

Processors bundle or itemize interchange, network fees, and their own charges differently. Compare the total monthly cost based on your sales volume, transaction count, and customers’ card types.

Flat-rate pricing

One blended rate includes interchange, network fees, and the processor’s markup. Rates usually differ between online and in-person payments. Check for additional charges on international cards, currency conversion, and manually entered payments.

Interchange-plus pricing

You pay the interchange rate that applies to each transaction, plus network fees and the processor’s markup. Your total changes with the cards customers use. Lower-cost cards reduce your processing costs directly.

Tiered pricing

The processor assigns transactions to different pricing tiers. Keyed entry or certain card types can move a payment into a more expensive category. Get each tier’s rate and qualification rules before comparing the advertised starting rate with another provider’s quote.

Subscription pricing

Subscription pricing combines a monthly membership fee with interchange, network fees, and a per-transaction charge. Some plans remove the processor’s percentage markup. For example, Stax starts at $99 monthly, plus card costs and transaction fees.

The membership takes a smaller share of revenue as sales grow. A $100 monthly fee equals 1% of $10,000 in sales or 0.1% of $100,000 in sales, before transaction costs.

Compare the full bill using your usual sales volume and transaction count. Check whether higher volume moves you into a more expensive subscription and whether equipment or software costs extra.

Additional processing fees

Check your processing contract for monthly account charges, equipment costs, and fees triggered by refunds, international payments, or cancellation.

PCI compliance fees and noncompliance penalties are separate charges. PCI DSS, the Payment Card Industry Data Security Standard, sets requirements for protecting payment data.

The PCI Security Standards Council develops the standard. Card brands run compliance programs, and your acquiring bank or processor communicates the validation requirements for your account.

Some processors charge recurring compliance fees for services such as security scans or validation assistance. Noncompliance penalties can apply when a merchant fails to meet or document required standards.

Shopify Payments charges no separate recurring PCI compliance fee. Shopify’s Level 1 PCI DSS certification means stores powered by the platform are compliant by default.

Here are additional fees to look out for.

In February 2025, the FTC announced it was sending more than $2.6 million in refunds to small businesses following a lawsuit against First American Payment Systems. The case involved allegations of hidden contract terms, surprise cancellation fees, and unauthorized withdrawals.

Before signing with a processor, request its complete fee schedule, renewal terms, and cancellation conditions in writing.

How to read your processing statement and calculate your effective rate

Your effective rate shows the percentage of card sales spent on processing fees. Calculate it using the fees and card sales from the same period.

1. Export your transaction records. In Shopify admin, go to Settings > Payments > View payouts > View Transactions > Export. Select the month you want to review and export the CSV file. Shopify’s payout export lists each transaction’s amount, fee, and net payout.
2. Total your card sales. Add successful card payments before processing fees and refunds. Include taxes and shipping charged to the card. Exclude cash, bank transfers, and other payment methods. Use transaction dates consistently, since payouts can arrive in a later month.
3. Add your processing fees. Total the fees attached to those card payments, then add separately billed payment-related charges, such as gateway or monthly account fees. Include chargeback fees, but exclude the disputed purchase amount and funds held in reserve. Avoid counting fees twice.
4. Calculate the percentage. Divide total processing fees by total card sales, then multiply by 100.

Effective rate (%) = (Total processing fees / Total card sales) x 100

These examples use the same formula at different sales volumes:

Your merchant discount rate (MDR), describes the charge for accepting card transactions. Your effective rate reflects the fees you actually paid, including separate processing charges counted in your calculation.

Compare months using the same fee categories. A higher effective rate can reflect smaller purchases, more international cards, or additional account fees. Check which charges increased before requesting a new quote.

Working with merchant service providers

A merchant service provider arranges card processing, deducts fees, and deposits funds into your bank account. Merchant account charges are often bundled into the processing bill, so ask for an itemized fee schedule.

With Shopify Payments, you can enable payment processing for your store without a separate merchant account application.

How to reduce your credit card processing fees

Compare pricing against your actual sales, prevent avoidable disputes, and review the cost of each payment method you accept.

1. Choose the right pricing model for your business

Align the pricing model with your average purchase amount and monthly card volume:

• Low-volume businesses. Flat-rate plans with no monthly processing fee keep fixed costs down. Check the per-transaction charge, which takes a larger share of small purchases.
• High-volume businesses. Compare interchange-plus and subscription quotes. Lower transaction markups can offset monthly charges as sales increase.

Ask providers to price the same recent transactions. Compare the projected monthly total, including account fees, with your current bill. An advertised percentage may not account for every charge.

2. Minimize chargebacks

A chargeback can cost you the disputed sale, the merchandise, and a separate processing fee. Fees vary by provider.

To reduce disputes and prepare stronger responses:

• Review fraud indicators. Check address verification and card security-code results before capturing suspicious payments.
• Use recognizable billing descriptors. Display your trading name so customers recognize the purchase on their statement.
• Document delivery. Save carrier tracking and proof of delivery for shipped orders.
• Respond promptly. With Shopify Payments, the evidence deadline is typically 7 to 21 days after a dispute is filed. Follow the exact deadline shown in the order.

Shopify collects available evidence and submits it on the due date. Open the disputed order and select Add evidence to attach additional relevant documents before submission.

Eligible US merchants also receive Shopify Protect coverage on qualifying Shop Pay orders. Protected orders must meet fulfillment and tracking conditions. For eligible fraudulent chargebacks, Shopify reimburses the disputed amount and chargeback fee.

3. Negotiate with your processor

Card networks set interchange rates, but processors control their own markup and account charges. A retailer with steady sales volume may be able to request a percentage markup, the fee per sale, or monthly account fee.

An equipment lease or added service charge can erase a lower transaction rate. Written quotes based on the same sales history show what each provider would charge over a full month, along with its renewal and cancellation terms.

4. Encourage lower-cost payment methods

Debit payments can cost less under pricing that passes through interchange charges. Under a flat-rate plan, debit and credit payments can carry the same merchant rate.

For example, these US debit interchange rates apply before network fees and processor markup:

Check your contracted debit rate before encouraging customers to switch. For larger invoices, compare Automated Clearing House (ACH) or bank transfer charges with card fees, including any return or account verification fees.

US merchants can set a credit card minimum of up to $10. Apply it consistently across issuers and networks, and check for any additional contract terms. Debit cards aren’t eligible for that minimum.

5. Consider a surcharge or cash discount program

A surcharge adds a fee to the advertised price when a customer pays by credit card. A cash discount reduces the posted price for customers paying cash. Advertising a cash price and adding a card fee at checkout counts as a surcharge.

For US transactions, debit and prepaid cards can’t be surcharged. Also note some states regulate or prohibit credit card surcharges.

Before introducing a program:

• Check state restrictions. Connecticut prohibits retail credit card surcharges but permits cash discounts. New York mandates disclosure of the full credit card price, including the surcharge.
• Check network limits. For brand-level surcharges, Visa caps the US fee at 3% or the applicable acceptance cost, whichever is lower. Mastercard’s maximum is 4%, also limited by acceptance cost. Lower state or processor limits and rules concerning competing card brands also apply.
• Complete advance notifications. Visa stipulates written notice to your acquirer at least 30 days before announcing or introducing surcharges. Mastercard also stipulates at least 30 days’ notice to both Mastercard and your acquirer.
• Disclose the charge. Display notices at store entry and checkout. Online, disclose the fee on the first page referencing accepted card brands and again at checkout. Itemize the surcharge on the receipt.

For cash discounts, staff can apply a custom discount in Shopify POS before accepting cash. Confirm that your setup excludes debit cards and satisfies your processor’s rules before activating a surcharge.