How Much Are Credit Card Processing Fees

Florence Carpenter

Between the years 2019 and 2020, the number of worldwide credit card transactions went up by around 6%. With more businesses seeing the importance of accepting credit cards, many may wonder about the average cost of credit card processing fees and how processing works. However, this number is dependent on a large number of factors. 

Although it can vary greatly, average costs are around 1.5% to 2.9% for swiped credit cards and this number goes up to around 3.5% for keyed-in cards. Depending on the type of credit card used, the number of transactions per month, and the type of industry you operate in, your monthly processing fees can go up or down. 

In general, American Express charges the highest fees, followed by Discover, Mastercard, and Visa. 

Factors that Impact Card Processing Fees 

Card processing fees can be difficult to compute depending on the circumstances. Some factors that can raise or lower this figure include: 

  • The mode of payment: keyed-in transactions have more risk associated with them and charge higher fees
  • Card absent vs. card present: Card absent transactions, such as those conducted online are riskier and have higher fees 
  • Type of business: B2B and B2G companies may have lower fees due to their volume of transactions
  • Type of industry: High-risk industries, such as eCommerce, travel, gambling, and software may have higher card processing fees 
  • Number of chargebacks: If your business is prone to chargebacks, you may have to pay higher fees to cover this additional risk 

At the end of the day, there is no typical average fee for credit card processing fee since so many factors can impact the figure. Because of this, doing your research and comparing quotes from various providers can help you save the most amount money in terms of payment processing. 

Learn more about other typical card processing fees here so you can make a more informed decision and potentially negotiate your current fees.

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