![]() ![]() This is why you may only see a convenience fee for a credit card, and not a debit card purchase. Note that debit cards have a different pricing model, and they usually cost less for merchants. The exact amount depends on the payment network (e.g., Visa, Mastercard, Discover, or American Express), the type of credit card, and the merchant category code (MCC) of the business. What are the average credit card processing fees for merchants?Ĭredit card processing fees for merchants equal approximately 1.3% to 3.5% of each credit card transaction. There are four types of pricing models that payment processors use: interchange-plus, flat rate, subscription, and tiered. ![]() ![]() American Express cards have the highest average credit card merchant fees.The only negotiable credit card transaction fees are the payment processing fees.These fees go to the card's issuing bank, the card's payment network, and the payment processor. To accept credit card payments, merchants must pay interchange fees, assessment fees, and processing fees.Total credit card processing fees for merchants range from 1.15% + $0.05 to 3.15% + $0.10 in interchange fees plus an additional 0.14% to 0.17% in assessment fees.For more on how much those costs can be - and how they vary among credit card companies - we've collected all the latest data. Most merchants need to accept credit card payments, which makes credit card processing fees a cost of doing business. Retailers say the reductions are narrow and do not balance out the increases in processing fees. Businesses claim that hiking interchange fees, which are paid by merchants on each transaction made with a credit or debit card, could worsen inflation and pinch consumers because businesses could opt to pass the cost of higher interchange fees onto consumers.īoth payment networks raised fees on certain types of transactions and reduced fees for transactions in certain categories. For the first time in two years, Visa and Mastercard raised their credit card fees for merchants in April 2022.ĭelayed by the pandemic, the move by the two largest payment networks to raise “swipe fees” was criticized by retailers. ![]()
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