The short answer
Each card sale pays two parts: interchange, which goes to the bank that issued your customer’s card, and your provider’s markup on top. Some providers roll both into one flat rate. Others show them separately.
The only number that tells you what you really pay is your effective rate: total fees divided by total card sales. If you paid $640 in fees on $20,000 of card sales, your effective rate is 3.2%.
The fees on a US merchant statement
The charges below fall into two groups. Interchange and your provider’s markup are paid on every sale, as separate lines or rolled into one flat rate. The rest are monthly, one-off or add-on fees, so open the one that matches the line you’re looking at.
Interchange: the card bank’s cut
Visa says it uses interchange “as transfer fees between acquiring banks and issuing banks,” and that “Merchants do not pay interchange reimbursement fees” directly. Instead, it says, merchants “negotiate and pay a ‘merchant discount’ to their financial institution” that “is typically calculated as a percentage per transaction” (Visa). In plain words: interchange is built into what your provider charges you, whether you can see it or not.
Interchange is not one number. For debit cards, there is a federal limit. The Federal Reserve’s rule caps debit interchange for large banks at “$0.21 plus 0.05 percent multiplied by the value of the transaction,” plus a 1¢ fraud-prevention adjustment if the bank is eligible. Banks with under $10 billion in assets are exempt (Federal Reserve).
The Fed’s own 2024 data shows how much that matters. Debit payments covered by the cap averaged 23¢ in interchange, or 0.47% of the sale. Debit from exempt, smaller banks averaged 51¢, or 1.21%. The Fed describes these as fees “received by a debit card issuer” (Federal Reserve), meaning the bank that issued the card, not your provider. That’s why a flat rate has to be set high enough to cover the expensive cards too.
Markup: what your provider keeps
This is what your provider keeps. On interchange-plus pricing, you can see it as a separate number:
- Helcim publishes a markup of 0.40% + 8¢ per in-person sale, and 0.50% + 25¢ for keyed and online sales, for businesses processing up to $50,000 a month. The markup drops with volume, down to 0.15% + 6¢ in person at $1 million to $5 million.
- Stax publishes “0% markup on interchange.” Instead, it charges 8¢ per in-person sale and 15¢ per keyed or online sale, plus a monthly subscription.
Your total is interchange plus that markup. Helcim says that “for most merchants,” its total in-person effective rate is “near or below 2%” (Helcim’s claim, not ours). Stax doesn’t publish a total.
Credit card processing rates: the flat rate
A flat rate rolls interchange and markup into one number. It’s simpler to predict, and you pay the same whatever card your customer uses. Published in-person rates:
- PayPal POS: 2.29% + 9¢
- Clover: 2.3% + 10¢ on its Growth plans, 2.6% + 10¢ on its cheapest retail bundle
- SpotOn: 2.45% + 15¢ on POS Essentials (Amex is 3.19% + 15¢)
- Toast: 2.49% with traditional pricing, or 3.09% on its pay-as-you-go Starter Kit. Toast doesn’t state a per-sale fixed fee.
- Square: 2.6% + 15¢ on Square Free, 2.5% + 15¢ on Plus, 2.4% + 15¢ on Premium
- Shopify (Basic plan): 2.6% + 10¢
- Lightspeed: 2.6% + 10¢
- Chase: 2.6% + 10¢
- Stripe: 2.7% + 5¢
- Heartland: starting at 2.6% + 10¢. Heartland also offers interchange-plus and says to “Take your pick of flexible pricing models,” so the plan you’re offered may differ.
Watch the fixed fee. On a $10 sale, Square Free’s 15¢ is 1.5% of the sale on its own.
Clover also notes, “Prices shown are only available on Clover.com.” Clover is sold through banks and resellers too, and their prices can differ.
Online and keyed-in premiums
Online rates:
- Stripe: 2.9% + 30¢
- Shopify (Basic): 2.9% + 30¢
- Chase: 2.9% + 25¢
- PayPal standard card payments: 2.99% + 49¢
- Square: 3.3% + 30¢ on Free, 2.9% + 30¢ on Plus and Premium
Keyed-in rates, for when you type the card number in:
- Square: 3.5% + 15¢ on every plan, also for saved cards on file
- Clover, Shopify and Chase: 3.5% + 10¢
- SpotOn: 3.45% + 15¢
- PayPal POS: 3.49% + 9¢
- Stripe: adds 0.5% for manually entered cards, which makes 3.4% + 30¢
Chase’s own pages disagree on its keyed-in rate. Its payments overview says 3.5% + 15¢, while its merchant fees page and FAQ say 3.5% + 10¢.
Monthly and plan fees: charged even in a slow month
These are charged whether you sell or not:
- Square Plus is $49 a month and Premium is $149, charged per location.
- Shopify Basic is $39 a month billed monthly, or $29 billed yearly. POS Pro for retail stores is another $89 a month per location, or $67 a month on a 12-month term (cancel early and you owe the rest of the term).
- Lightspeed Retail Basic is $89 a month billed yearly, or $109 billed monthly.
- Toast’s restaurant Point of Sale plan starts at $69 a month. SpotOn’s POS Essentials is $55 per station per month.
- Stax’s subscription is $99 a month for up to $150,000 a year in processing, then $139, then $199 and up.
- Heartland’s POS starts at $89 a month. Chase says “monthly fees may apply to certain products and pricing plans,” without amounts.
- Square Free, Stripe, Helcim and the PayPal POS app list no monthly fee to take payments.
A low rate with a high monthly fee can cost more than a higher rate with none, especially in a slow month.
Hardware: readers and terminals
Card readers and terminals are usually a separate, one-time cost:
- PayPal Card Reader: $29 for the first one, $79 for each one after that
- Square Reader: $59. Square Terminal: $299.
- Stripe Reader M2: $59. Stripe Reader S700: $299.
- Helcim Card Reader: $199. Helcim Smart Terminal: $349.
- Clover Go: $199. Clover Station Duo: $1,899.
Some providers trade hardware cost for a higher rate or a long term. Toast’s pay-as-you-go Starter Kit has no upfront hardware cost but charges 3.09% on every sale. Clover offers hardware on 36-month subscriptions, and Clover says if you don’t buy or return the equipment at the end, “your subscription term will be extended at the same monthly charge.”
Chargeback and dispute fees
When a customer disputes a payment with their bank, providers charge you to handle it:
- Helcim: $15, but only if you lose. $0 if it’s resolved in your favor.
- Lightspeed: $15.
- Stripe: $15 per dispute, plus another $15 if you respond to it manually. You get the second fee back only if you win.
- PayPal: $20 per chargeback, and a separate $15 standard dispute fee ($30 for high-volume disputes).
- Square says “There are no fees for dispute management services for chargebacks.” Separately, when you refund a payment yourself, Square says the processing fees for the payment “aren’t refunded back to you.”
Faster payout fees: instant transfers
- Square instant transfers: 1.95% per transfer. Standard next-business-day transfers are free.
- Stripe Instant Payouts: 1.5%, with a 50¢ minimum.
- PayPal instant transfers: 1.5%, with a 50¢ minimum.
- Clover Rapid Deposit: 1.75%.
On $2,000 a day of sales, Square’s 1.95% is $39 a day. If you use instant payouts every day, this line can be bigger than your monthly plan fee.
International cards and other add-ons
Stripe adds 1.5% for international cards and 1% if currency conversion is needed. Shopify adds 1% for online international cards.
Shopify also charges a third-party transaction fee if you use a payment provider other than Shopify Payments: 2% on Basic, 1% on Grow, 0.6% on Advanced and 0.2% on Plus. That’s on top of what the other provider charges you.
PCI fees: data security charges
PCI fees relate to the card industry’s data security standard, PCI DSS, which “provides a baseline of technical and operational requirements designed to protect payment account data” (PCI Security Standards Council).
Helcim lists its PCI fee for the annual compliance self assessment as $0. Stax’s pricing page doesn’t list chargeback, PCI or statement fees. Most providers we compare don’t publish a PCI fee amount at all. If your statement shows one, ask what it’s for and whether you can avoid it.
What it adds up to: one example month
Say you take $10,000 in card payments in person, across 400 sales. At published rates, the fees would be (our estimate, before keyed-in sales, chargebacks, payouts and hardware):
| Provider | How it’s priced | Card fees | Monthly fees | Total |
|---|---|---|---|---|
| PayPal POS | 2.29% + 9¢ | $265 | $0 | $265 |
| Stripe | 2.7% + 5¢ | $290 | $0 | $290 |
| Chase | 2.6% + 10¢ | $300 | not published | $300 + any monthly fees |
| Square Free | 2.6% + 15¢ | $320 | $0 | $320 |
| Shopify Basic | 2.6% + 10¢ | $300 | $39 | $339 |
| Helcim | interchange + 0.40% + 8¢ | interchange + $72 | $0 | depends on interchange |
| Stax | interchange + 8¢ | interchange + $32 | $99 | depends on interchange |
For Helcim, $72 is only the markup. For Stax, $32 is only the per-sale fee. We can’t add interchange without knowing your card mix, which is why interchange-plus totals have to come from your own statement or a written quote.
What is a normal credit card processing fee?
There’s no official average. In person, most published flat rates at the providers we compare run from 2.29% to 2.7%, plus 5¢ to 15¢ per sale. A few all-inclusive plans charge more, such as 3.09% on Toast’s pay-as-you-go kit and 2.79% + 20¢ on SpotOn All-In. Standard online card rates on entry plans cluster around 2.9% to 3.3%, plus 25¢ to 49¢.
But the fixed cents fee weighs more on small sales. Effective rate on one in-person sale, by our math:
| Sale size | PayPal POS (2.29% + 9¢) | Square Free (2.6% + 15¢) | Stripe (2.7% + 5¢) |
|---|---|---|---|
| $5 | 4.09% | 5.60% | 3.70% |
| $20 | 2.74% | 3.35% | 2.95% |
| $50 | 2.47% | 2.90% | 2.80% |
| $200 | 2.34% | 2.68% | 2.73% |
On a $5 sale, Stripe’s 5¢ makes it cheaper than PayPal POS. By $20, PayPal is cheaper. And on a $200 sale, Square Free beats Stripe. A “normal” fee for a coffee shop and a furniture store can be very different, even at the same provider.
How to work out your effective rate
- Find your total card sales for the month on your statement. Use the full amount before fees.
- Add up every fee on the statement: processing, monthly, plan, PCI, chargeback and payout fees.
- Divide the fees by the sales, then multiply by 100.
Three examples at different sizes, priced at published rates. These are our estimates.
A coffee counter on Square Free: $15,000 in card sales, 1,500 payments. Fees are 2.6% × $15,000 = $390, plus 1,500 × 15¢ = $225. That’s $615, so the effective rate is $615 ÷ $15,000 = 4.1%. The cents fee drives it.
A shop on Clover’s Retail Standard bundle: $10,000 in card sales, 400 payments. Fees are 2.3% × $10,000 = $230, plus 400 × 10¢ = $40, plus the $180 bundle. That’s $450, an effective rate of 4.5%. The monthly bundle drives it, even though it includes hardware.
An online shop on Stripe: $50,000 in card sales, 1,000 orders, 10% from international cards. Fees are 2.9% × $50,000 = $1,450, plus 1,000 × 30¢ = $300, plus 1.5% × $5,000 = $75. That’s $1,825, an effective rate of about 3.7%. The international add-on is small. The online rate drives it.
The fee calculator does this math from your statement, then prices the same month at other providers.
Why do some businesses add a 3% card fee?
To pass some or all of their card costs, about 2.3% to 3.5% plus cents per sale at flat-rate providers, to the customer. Some add a surcharge. Others offer a cash price instead.
The card networks set limits first. Visa caps a credit card surcharge at your merchant discount rate for that card or 3%, whichever is lower (Visa), and Mastercard caps it at 4% (Mastercard). Neither allows a surcharge on debit or prepaid cards, and some states ban surcharges outright.
Whether you’re allowed to depends on where you are and how you do it. Our credit card surcharge guide covers the rules state by state, and our cash discount program page explains the difference between the two.
How to lower your credit card processing fees
You can’t change interchange, but you can change how much of your sales pay the highest rates. Dip or tap cards instead of typing them in (at Square, a typed-in $100 sale costs $3.65 against $2.75 dipped), and wait for standard payouts instead of paying for instant ones. Take large invoices by bank: a $2,500 invoice costs $72.80 by card at 2.9% + 30¢, but $5 by ACH at Stripe, $6 at Helcim, and $10 at Stax, PayPal invoicing or Square Plus.
Our guide to lowering your fees works through every line on your statement, when an interchange-plus quote pays off, and when switching is worth it.
Keep reading
- The fee calculator: turn your statement into one number.
- Compare payment processors: every provider’s rates side by side.
- POS systems compared: if you need software, not just card payments.
- Fee calculators for Square and Stripe.
- Full fee breakdowns for Square, Stripe, Helcim and Stax.
- Card fees for trades: what job apps like Jobber™ and Housecall Pro charge on the invoices you send.
Get told when these prices change
Providers change fees with little notice. Alerts start soon, and we'll send nothing else.
Common questions
How much are credit card processing fees?
At the flat-rate providers we compare, published in-person rates run from 2.29% + 9¢ at PayPal POS to 2.7% + 5¢ at Stripe. Square, Shopify, Lightspeed and Chase list 2.6% plus 10¢ or 15¢. Online rates are higher, such as 2.9% + 30¢ at Stripe. Helcim and Stax publish only their markup, so your total depends on your cards.
What is a good effective rate for card processing?
Your effective rate is your total fees divided by your card sales. There's no official benchmark, so compare it to published prices. If you take most cards in person and your rate is well above the 2.29% to 2.7% flat rates listed by PayPal POS, Square and Stripe, look for monthly, plan and per-sale fees on your statement and ask what each one is for.
Where do interchange fees go?
To the banks, not your provider. Visa describes interchange as a transfer fee between the merchant's bank and the card-issuing bank, and says merchants pay a "merchant discount" to their own financial institution instead. For debit cards from banks with $10 billion or more in assets, the Federal Reserve caps interchange at 21¢ plus 0.05% of the sale, plus 1¢ if eligible.
Why does my statement show so many different fees?
Some providers charge one flat rate. Others split the cost into interchange, their own markup, and fixed fees for plans, software, hardware or disputes. Stax, for example, adds 8¢ per in-person sale on top of interchange, plus a subscription from $99 a month. Divide your total fees by your card sales to see what it all adds up to.
Are online and keyed-in payments more expensive?
Yes, at every provider we compare that publishes them. Stripe charges 2.7% + 5¢ in person but 2.9% + 30¢ online, and adds 0.5% when you type the card in. Square charges 3.5% + 15¢ for keyed-in and card-on-file payments on every plan. If you take phone orders, check this line first.
How can I lower my credit card processing fees?
Start with the payment types that cost most. Dip or tap cards instead of typing them in. Wait for standard payouts instead of paying 1.5% to 1.95% for instant ones. Take large invoices by bank transfer, which Stripe caps at $5. Check whether a paid plan's lower rate beats its monthly fee. At steady volume, get an interchange-plus quote.
Who pays credit card processing fees, the business or the customer?
The business. The fee comes out of each sale before the money reaches your bank. Visa says merchants pay a "merchant discount" to their own financial institution, typically a percentage per transaction, and interchange is built into it. Your customer pays only if you add a surcharge where card network rules and your state allow it.
Are debit cards cheaper to process than credit cards?
The bank's share is lower, but only interchange-plus pricing passes that on to you. The Federal Reserve's 2024 data shows debit interchange averaged 23¢ (0.47% of the sale) on cards under its cap and 51¢ (1.21%) on cards from smaller, exempt banks. On a flat rate you usually pay the same: Square lists one in-person rate for every major card, with no separate debit rate.