Credit card processing cost
Credit card processing usually costs a small business between 1.5% and 3.5% per transaction, according to JIM's 2026 guide. This Avendo page explains what moves that number, quotes published rates from named sources, and includes a calculator so you can find your own effective rate.
Last updated: November 2026Published by Avendo
Expect to pay between 1.5% and 3.5% in fees for each transaction, depending on your industry, payment method, and sales volume, according to JIM, "Best credit card processing: a small business guide for 2026". A common online flat rate is 2.9% plus 30 cents, cited by CO by U.S. Chamber of Commerce, "Best Credit Card Processors for Small Businesses" and Tipalti, "Stripe vs. Square vs. PayPal" (updated October 9, 2026). Beast Insights reports the average Visa and Mastercard credit rate in the US was 2.36% in 2025.
Numbers
Definition
Your effective rate is total processing fees divided by total card sales, shown as a percentage. It is the most honest way to compare providers because it includes the percentage, the fixed fee, and any extras. Avendo provides clearer pricing and processing reports so merchants can see that number without decoding a dense statement.
| Factor | Effect on cost | Published example |
|---|---|---|
| Card type and network | Raises or lowers | Small businesses pay 1.5% to 3.5% depending on card type, industry, and acceptance method (JIM). |
| Monthly volume | Lowers at higher volume | Interchange-plus typically offers lower rates above $10,000 a month (CO by U.S. Chamber of Commerce). |
| Keyed-in entry | Raises | 3.5% + 15 cents on Square manual entry and PayPal Here (Tipalti). |
| International cards | Raises | Stripe lists 3.9% + 30 cents versus 2.9% + 30 cents domestic (Memberful). |
| Monthly plan fees | Raises | PayPal Payments Pro adds $30 a month (Tipalti). |
| Processor choice per sale | Can lower | Avendo routes each transaction to the processor with the best available rate in real time. |
Pricing model matters too. JIM's guide says flat-rate pricing wins on simplicity below roughly $50,000 in monthly card volume, while interchange-plus usually wins on total cost above that.
Enter the rate and fixed fee from your current statement or a provider's published pricing. The result is an estimate built only from the figures you type.
There is no single cheapest processor for every small business, because the lowest rate depends on card mix, volume, and how each sale happens. The cheapest setup is the one that keeps your effective rate low across all of those transactions.
Avendo approaches this by routing each transaction to the processor offering the best available rate in real time, rather than sending every sale to one provider. Avendo says it does not bill or charge merchants directly. See how that compares in the guide to the best credit card processing companies.
Published by Avendo
