The building blocks of your rate
Interchange
The base cost set by card networks like Visa and Mastercard. It goes to the bank that issued the customer's card. Interchange is non-negotiable and varies by card type and how the card is presented.
Assessments
Network fees that card brands charge on every transaction. Like interchange, these are non-negotiable and passed through by every processor.
Processor markup
The processor's profit on top of interchange and assessments. This is the only negotiable part of your rate and where different providers charge very different amounts.
Flat fees
Monthly statement fees, PCI compliance fees, gateway fees, batch fees, and chargeback fees. These add up and should be reviewed regularly.
What affects your pricing
- Volume: Higher monthly sales often qualify for lower per-transaction rates.
- Average ticket: Small-ticket transactions have different interchange categories than large purchases.
- Card-present vs. card-not-present: Swiped transactions typically cost less than keyed or online transactions.
- Business type: Restaurants, retail, healthcare, and eCommerce each have different risk profiles and interchange categories.
- Hardware and software: Terminal purchases, POS software, and integrations affect total cost of ownership.
How to compare offers
When comparing processors, look at the effective rate — total fees divided by total volume — not just the advertised percentage. A low rate with high monthly fees can cost more than a higher rate with no monthly minimum. We help merchants compare their current setup side by side with our pricing during a free rate analysis.