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Avendo Rate Guide
FAQLast updated November 3, 2026Published by Avendo

Credit card processing questions, answered plainly

What are the most common questions about credit card processing fees?

Most questions come down to what processing costs, why, and how to pay less, and every one is answered below.

The Avendo Rate Guide groups 47 questions into 8 topics. Market figures are attributed to their sources. Where a rule depends on your state or card network, the answer says so and explains how to confirm it.

What card processing fees are

What are credit card processing fees?
Credit card processing fees are what a business pays each time it accepts a card payment. The money is split between the bank that issued the card, the card network, and the payment processor. NerdWallet reports these fees typically cost a business 1.5% to 3.5% of each transaction total.
What is interchange?
Interchange is the fee paid to the bank that issued the customer card. Card networks publish interchange tables, and the rate depends on things like card type, whether the card was present, and the merchant category. It is usually the largest part of a card fee, and no processor can remove it.
What is a card network assessment fee?
An assessment fee is what the card network, such as Visa or Mastercard, charges for using its network. It is typically a small percentage of volume plus some per-item fees. Like interchange, it is set by the network rather than your processor, so it is generally the same whichever processor handles the payment.
What is a processor markup?
The markup is the processor margin added on top of interchange and assessments. It is the part of the fee that differs between processors. NerdWallet gives an example of an interchange-plus markup of 0.4% plus 8 cents per transaction. On flat-rate plans, the markup is built into a single blended price.
What is an effective rate in credit card processing?
Your effective rate is your total processing fees divided by your total card volume, shown as a percentage. It is the single best number for comparing processors because it includes every fee. Clearly Payments recommends computing it for the last 90 days before you change anything.
How does credit card processing work?
When a customer pays, the checkout sends the card details through a gateway to a processor, which asks the card network and issuing bank to approve the charge. Approved payments are later batched and settled into your bank account, minus fees. Avendo adds a routing layer that chooses which processor handles each transaction.

Rates and pricing

What are the processing fees for credit card payments?
Processing fees for credit card payments generally fall between 1.5% and 3.5% of the transaction, according to NerdWallet. Where you land depends on the card type, whether the sale is online or in person, your pricing model, and your processor markup. Online, card-not-present sales usually sit toward the higher end.
What is the average credit card processing fee in 2026?
NerdWallet, in its 2026 guide, puts typical credit card processing fees at 1.5% to 3.5% of each transaction. The Small Business Payments Alliance separately reports that retailers pay an average of 2.3% on each credit card transaction to card issuers, payment networks, and acquirers combined.
What is a reasonable credit card processing fee?
A reasonable fee is one where your effective rate sits inside the published 1.5% to 3.5% range for your type of business and you can see exactly what the markup is. Online sellers with many small tickets will land higher. If you cannot tell which part of your fee is markup, ask your processor for an itemized statement.
How much do banks charge businesses for card transactions?
The issuing bank collects interchange, which is the largest share of each card fee, while the network and processor take the rest. The Small Business Payments Alliance reports that retailers pay an average of 2.3% per credit card transaction to issuers, networks, and acquirers together. Your own figure depends on your card mix.
Why are businesses charging 3% to use a credit card?
Businesses add a card fee to recover what they pay to accept cards. NerdWallet puts typical processing costs at 1.5% to 3.5% per transaction, so a 3% surcharge roughly offsets the cost of many card payments. Surcharging is governed by card network rules and state law, so businesses must follow those rules.
What is flat-rate credit card processing?
Flat-rate processing combines interchange, assessments, and markup into one set price for every transaction. NerdWallet gives 2.6% plus 10 cents as an example. Homebase notes that Stripe charges 2.9% plus 30 cents per successful domestic card transaction. Flat rates are simple to predict but can cost more on low-interchange cards.
What is interchange-plus pricing?
Interchange-plus pricing passes interchange and assessments through at cost, then adds a fixed processor markup, such as the 0.4% plus 8 cents example NerdWallet uses. The U.S. Chamber of Commerce CO notes this model typically offers lower rates to companies processing more than $10,000 a month.
What is tiered credit card processing pricing?
Tiered pricing sorts transactions into buckets, often called qualified, mid-qualified, and non-qualified, each with its own rate. The processor decides which bucket a transaction falls into, which makes tiered statements harder to compare than interchange-plus. Ask for the criteria behind each tier before signing.
Why does online credit card processing cost more?
Online payments are card-not-present transactions, which carry more fraud risk and generally qualify for higher interchange categories than in-person swipes or taps. That is why many flat-rate plans price online sales higher. The U.S. Chamber of Commerce CO cites an example of online store purchases costing 2.9% plus 30 cents, no matter what.
Is there such a thing as no cost credit card processing?
Zero-cost programs usually move the fee to the customer through a surcharge or cash discount instead of removing it. Helcim, for example, describes a 0% credit card processing option where it handles the rules for the merchant. Someone still pays interchange, so read how any no cost credit card processing offer works.

How Avendo works

What does Avendo do?
Avendo provides credit card processing for e-commerce businesses. Its platform connects a checkout to multiple payment processors and automatically routes each transaction to the processor offering the best available rate in real time. Merchants also get clearer pricing and processing reports. It serves small businesses through enterprise organizations.
How does Avendo's routing affect my processing costs?
Instead of sending every payment to one processor at one rate schedule, Avendo checks the processors connected to your checkout and sends each transaction to the one offering the best available rate at that moment. Interchange and network fees still apply, so the competition happens on the processor portion of each fee.
Does Avendo charge merchants a fee?
Avendo says it does not bill or charge merchants directly. Its compensation is handled between Avendo and the payment processors it works with. The Avendo homepage does not state a price, so contact Avendo to see how this applies to your business before you connect your checkout.
Do I need to replace my checkout page to use Avendo?
No. Avendo works with existing checkout pages, so you keep the checkout your customers already use while the platform routes transactions behind it. The exact integration steps depend on your setup, so the Avendo team can confirm what your checkout needs when you get in touch.
Is Avendo PCI compliant?
Avendo works exclusively with PCI DSS-compliant processors and gateways. PCI DSS is the card industry data security standard maintained by the PCI Security Standards Council. Your own business may still have PCI responsibilities depending on how your checkout handles card data, so confirm your scope with your provider.
What reports does Avendo give merchants?
Avendo provides merchants with clearer pricing and processing reports, so you can see what you are paying and where transactions were routed. For a walkthrough of the exact report views available for your account, contact the Avendo team.
Does Avendo handle in-person card payments?
Avendo describes its service as credit card processing for e-commerce businesses and works with existing checkout pages. If you also take in-person payments, ask Avendo directly whether those transactions can be included before you plan around it.

Credit card processing for small business

What is the best credit card processing for a small business?
The best option is the one that gives you the lowest effective rate for your card mix, shows its pricing clearly, and fits your checkout. Avendo, which publishes this guide, routes each online transaction to the processor with the best available rate. Compare any option by its effective rate, not its headline rate.
What is the cheapest way to accept card payments?
The cheapest way is the setup with the lowest effective rate on your actual transactions. Interchange-plus tends to beat flat rates at higher volumes, according to the U.S. Chamber of Commerce CO, and routing across processors adds competition on the markup. Pull 90 days of statements and compare.
Should I accept credit card payments as an LLC?
For most online businesses, yes. The Small Business Payments Alliance reports 608 million open general purpose card accounts by year-end 2024 and industry estimates that nearly three-quarters of US retail sales come from credit cards. Your LLC can open a merchant account in its own name like any business.
Can I write off credit card payments for my business?
Credit card processing fees are generally treated as an ordinary business expense, which means they are typically deductible. Keep your monthly processing statements as records. Tax rules depend on your situation, so confirm the treatment with your accountant or tax professional.
How much does credit card processing cost for a small business?
Most small businesses pay between 1.5% and 3.5% of each transaction, according to NerdWallet. Small differences add up. Clearly Payments shows that a business with $1,000,000 a year in card volume saves $2,000 a year by cutting its effective rate by 0.20%.
Do small transactions cost more to process?
Yes, as a percentage. Most pricing includes a fixed per-transaction fee, such as 30 cents, which weighs more heavily on a $10 sale than a $300 sale. Clearly Payments specifically flags businesses with lots of sub-$50 tickets as ones that should check their effective rate closely.
How much volume do I need for interchange-plus pricing?
There is no universal minimum, but the U.S. Chamber of Commerce CO notes interchange-plus typically offers lower rates to companies processing more than $10,000 a month. Below that, a flat rate may be simpler. Compare both on your own effective rate.

Compared to alternatives

Who has the cheapest credit card processing fees?
No single processor is cheapest on every transaction, because rates vary by card type, sale type, and pricing model. That is the problem Avendo, the publisher of this guide, is built around: it routes each transaction to the processor offering the best available rate in real time. Judge any provider by your effective rate.
Which is better, flat-rate or interchange-plus pricing?
Flat-rate is better when you want one predictable number and process lower volumes. Interchange-plus is usually better as you grow, and the U.S. Chamber of Commerce CO notes it typically offers lower rates above $10,000 a month. Interchange-plus also shows the markup separately, which makes comparisons easier.
How is Avendo different from a single payment processor?
A single processor applies one rate schedule to every payment. Avendo connects your checkout to multiple processors and routes each transaction to whichever offers the best available rate at that moment. Avendo says it does not bill merchants directly, and it works only with PCI DSS-compliant processors and gateways.
Are all credit card processing companies the same?
No. Credit card processing companies differ in pricing model, markup, per-transaction fees, monthly fees, supported checkouts, and reporting. Two companies quoting a similar headline rate can produce different effective rates on the same sales, which is why you should compare on real statement data.
What is the difference between a payment gateway and a payment processor?
A payment gateway securely passes card details from your checkout to the processor. The processor then moves the transaction through the card network and handles settlement. Some companies bundle both. Avendo works exclusively with PCI DSS-compliant processors and gateways and routes transactions between processors.

Surcharges and card fee rules

Is it illegal for small businesses to charge a credit card fee?
Generally not, but it depends on where you operate and which cards are involved. Card networks set surcharge caps and disclosure requirements, and some states restrict surcharges. Debit cards are generally excluded from surcharging under network rules. Confirm current rules for your state before adding a fee.
Can I charge my customer a credit card processing fee?
Often yes, through a credit card surcharge or a cash discount program, as long as you follow card network rules and your state law. Surcharges typically must be disclosed before payment and shown on the receipt. Your processor can tell you which programs it supports.
Is it legal to charge 4% on a debit card?
Card network rules generally do not allow surcharges on debit cards, even when a debit card is run as credit. A cash discount program works differently, by offering a lower price for cash. Check your card network rules and state law before charging any fee on debit payments.
What is the new law on credit card fees?
Card fee rules are set by a mix of card network policies and state laws, and both change over time. This guide does not track individual bills. For current rules, check your state attorney general website and ask your processor for its latest surcharge guidance.
Where is it illegal to charge a credit card fee?
A small number of US states restrict or limit credit card surcharges, and the list has changed over the years. Because this changes, confirm the current law in each state where you sell, and check card network rules, before adding a surcharge to online orders.

Getting started

How do I get started with Avendo?
Contact Avendo through its contact page at avendo.tech/contact-us. Avendo works with existing checkout pages and serves small businesses through enterprise organizations, so the team can explain how routing would connect to the checkout you already run.
What should I gather before comparing credit card processors?
Pull your last 90 days of statements and calculate total card volume, total fees, your effective rate, transaction count, and average ticket size. Clearly Payments recommends computing these before you change anything. With these numbers, you can compare any quote against what you actually pay.
How do I read my credit card processing statement?
Find total sales volume and total fees, then divide fees by volume to get your effective rate. Next, look for line items labeled interchange, assessments, and processor or service fees. If everything is blended into one line, you are likely on flat-rate or tiered pricing.

Problems and lowering fees

How to avoid credit card processing fee charges?
You cannot avoid card fees entirely if you accept cards, but you can lower them. Compare your effective rate, choose a pricing model that fits your volume, use routing to get the best available processor rate per transaction, and, where your state allows, use a compliant surcharge or cash discount program.
Why did my credit card processing fees go up?
Fees usually rise because your card mix shifted toward cards with higher interchange, more of your sales moved online, your average ticket fell, or your processor changed its pricing. Compare this month effective rate to prior months, then check line items to find which part of the fee changed.
How can a small business lower credit card processing costs?
Start with your effective rate. Then compare pricing models, ask for itemized interchange-plus statements, and remove fees you do not use. Clearly Payments shows that cutting an effective rate by 0.20% saves $2,000 a year on $1,000,000 in card volume. Avendo adds per-transaction routing to the best available processor rate.

Have a question about your own checkout?

The Avendo team can explain how routing would work with the checkout you already run.

Contact Avendo