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What is a Normal Credit Card Processing Fee?

As a business owner, it’s important to understand the costs associated with accepting credit card payments. One of these costs is the credit card processing fee, which is charged by payment processors for handling credit card transactions.

What Is a Credit Card Processing Fee?

A credit card processing fee is the amount of money that a business pays to a payment processor for every credit card transaction that they process. This fee is usually a percentage of the total transaction amount, as well as a flat fee per transaction. Payment processors charge these fees to cover the costs of processing credit card payments, including fraud prevention, account maintenance, and customer service.

What Factors Affect Credit Card Processing Fees?

There are several factors that can affect the credit card processing fees that a business pays, including:

  • Transaction volume: Businesses that process a high volume of credit card transactions typically pay lower processing fees because they are able to negotiate better rates with payment processors.
  • Transaction size: Larger transactions may result in higher processing fees, as payment processors typically charge a higher percentage fee for larger transactions.
  • Merchant category: Some payment processors charge different fees for different types of businesses. For example, high-risk merchants may be charged higher fees to account for the increased risk of chargebacks and fraud.
  • Type of card: Different types of credit cards may result in different processing fees. For example, rewards cards typically have higher fees than standard credit cards.

What Is a Normal Credit Card Processing Fee?

There is no one-size-fits-all answer to this question, as credit card processing fees can vary widely depending on the factors mentioned above. However, the average credit card processing fee for businesses is around 2.9% + $0.30 per transaction. This means that for a $100 transaction, a business would pay $3.20 in processing fees.

How Can Businesses Lower Their Credit Card Processing Fees?

While businesses may not be able to eliminate credit card processing fees altogether, there are several strategies that they can use to lower their fees:

  • Negotiate with payment processors: Businesses that process a high volume of credit card transactions should negotiate with payment processors to try to get lower rates. Even small businesses can often negotiate lower rates by shopping around and comparing processing fees from different payment processors.
  • Use a payment gateway: Payment gateways can help businesses lower their processing fees by aggregating transactions and minimizing the number of transactions that are subject to per-transaction fees.
  • Monitor chargebacks: Chargebacks can be costly for businesses, as they can result in fees and lost revenue. By monitoring chargebacks and taking steps to prevent them, businesses can lower their overall processing fees.


Credit card processing fees are an important consideration for businesses that accept credit card payments. While there is no “normal” processing fee, businesses can take steps to lower their fees by negotiating with payment processors, using payment gateways, and monitoring chargebacks. By taking these steps, businesses can keep their costs low and ensure that they are getting the best possible deal on credit card processing fees.

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