![]() ![]() Interchange rates consist of a percentage of the transaction plus a fixed transaction fee. Interchange fees are determined by credit card networks and are paid to the issuing bank. Interchange fees are the largest credit card processing rates merchants are expected to pay since they cover the risk involved with these transactions. Most merchant processing fees can be broken down into 4 main categories: Now that you understand how credit card processing fees are determined, it’s important to know how to differentiate between the fees associated with credit cards included within these costs. Payment processors: Payment processors act as mediators between merchants and their banks - and provide payment gateways - to complete credit or debit card transactions.Īll parties determine the average merchant processing fees because they charge a credit card fee per transaction which ultimately dictates how much a merchant will have to pay.Card issuers: Card issuers are banks or financial institutions that partner with card networks to issue credit cards to consumers.Credit card networks: Credit card networks include Visa, Mastercard, Discover, American Express, and other card brands.To understand how all three entities determine credit card processing fees, you must first understand the nature of each organization: Merchant processing fees are typically determined by three parties - card issuers (banks), credit card networks, and payment processors.Ĭard issuers, card networks, and payment processors play a significant role in determining merchant processing fees due to their active involvement in the credit card transaction process. Who determines average merchant processing fees? Processing averages are helpful to reference for future decisions, however, it’s important to keep in mind that these ranges will differ by source and other variables. In addition to these rates, card networks will also tack on flat fees ranging from $0.05 to $0.10 for each transaction. Here are broad estimates to expect in 2022 from the four major credit card networks for credit card processing fees: While credit card processing fees vary depending on business size, card networks, processing volumes, and other factors, these fees typically stay within an average percentage range.Ĭurrently, average credit card processing fees for merchants can range anywhere from 1.3% to 3.5% for both swiped cards and keyed-in transactions. ![]() What are the average credit card processing fees? Security Reduce your liability when handling customer card data.Īny merchant that accepts credit or debit card payments is required to pay credit card processing fees to their payment processor, credit card networks, and card issuers.ĭespite these mandatory fees, merchants can take advantage of valuable insights and various resources to determine the average credit card processing fees and secure the lowest rates.Business Types Find solutions that fit the workflow of your business and industry.Features (All-Inclusive) 20+ features that simplify the payment collection process.Integration Marketplace → Accept payments inside 100+ accounting, ERP, CRM, and eCommerce tools.Accept Payments Accept credit, debit and eCheck payments across multiple channels. ![]()
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