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How Much Do Credit Card Processors Make

Florence Carpenter

Every business owner aims to minimize costs and maximize their savings. With credit card payments leading the pack as the largest in-store payment type by volume, it’s important to gain a better understanding of the ins and outs of credit card processing. 

What is the average cost of credit card processing fees?

While the average cost of credit card processing varies depending on a variety of factors, major credit card companies tend to charge between 1.3% and 3.4% of each credit card transaction. This exact amount depends on the payment network, type of credit card, and merchant category code of the business.

In addition, credit card processors also charge flat fees and incidental fees that can range from $5 to $100. This includes monthly account fees and any additional fees, like chargeback fees that can occur during an assessment. 

What are the most common types of credit card processing fees? 

The two types of fees explored above include interchange fees and assessment fees. 

Interchange fees are paid to the bank that issued the credit card. On the other hand, the payment network that is used receives the assessment fee, which is usually a much smaller portion of each transaction. 

Payment processing fees are paid to the company that accepts the credit card payment and sends the data to a payment network through a card reader or online gateway. Costs can include: 

  • A fee per transaction
  • A service fee charged every month 
  • The cost of the equipment used to process transactions

What are the factors that impact the cost of processing fees? 

One thing that you should keep in mind is that these numbers are average estimates that can vary greatly across industries. Factors that can impact the cost of your transaction include:

  • The type of transaction (in person or online)
  • Whether you’re an average or high-risk business
  • The average size of your transaction

At the end of the day, every credit card processor has a different range of costs they charge for their services. Processing, scheduled and incidental fees can all typically be negotiated, especially if you process a large number of transactions.

For a more detailed look at credit card processing services for your business, feel free to read our article to help you obtain more competitive rates. Contact us today at Processing Card to learn more. 

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