Learn about the various fees associated with credit card processing, including fixed, incidental, transaction-based, and volume-related costs. This guide helps businesses understand what to expect and choose the best pricing models to optimize payment processing costs.

A Complete Guide to Credit Card Processing Fees and Costs

Using credit cards offers convenient credit access for consumers and businesses alike, enabling seamless transactions. However, processing these payments involves various fees imposed by payment processors. This article explains the key types of credit card processing charges and their functions.

Processing fees generally fall into four main categories: fixed charges, incidental costs, transaction-dependent fees, and volume-based expenses.

Fixed charges include:

In-store point-of-sale terminal fees

Online payment gateway costs for e-commerce sites

PCI compliance and penalty fees

Annual membership dues

Monthly support fees

Paper billing statement charges

Standard card network fees

Incidental fees cover services such as:

Address verification costs for online transactions

Voice authorization fees for manual approvals

Batch processing charges for multiple transactions

Chargeback retrieval fees

NSF fees when accounts lack sufficient funds

Transaction fees include interchange and assessment costs, which differ based on sales volume and pricing structures.

Volume-related fees depend on sales totals. Selecting interchange-plus pricing involves a flat percentage fee, while tiered pricing sorts transactions into different categories—qualified, mid-qualified, and non-qualified.

Note:

This information is compiled from industry research, data analysis, expert opinions, and statistics. Actual fees may differ based on financial institutions and market trends. For tailored advice, consult a financial professional. Keep in mind that rates and policies can change over time and may not be current on this site.