The average credit card processing fee, which will be taken out of a merchant's sales revenue, is in the range of about 1.5 percent to 3.5 percent. Merchants can negotiate their card processing fees, and they are not set in stone.
In most cases, yes—it's legal to surcharge credit cards. According to federal law, there's a 4% maximum allowable surcharge on credit card transactions. Debit card surcharging is illegal in all 50 states.
A per-transaction fee is an expense a business must pay each time it processes an electronic payment for a customer transaction. Per-transaction fees vary across service providers, typically costing merchants from 0.5% to 5% of the transaction amount plus certain fixed fees.
Foreign transaction fees generally range from 1 percent to 3 percent and tend to average around 3 percent of each transaction. Paying around $3 per $100 you spend may not sound that expensive, but these fees can add up if you're making a lot of purchases with your credit card.
This fee is usually a percentage of the purchase amount and typically around 1% to 3%. For example, if you make a $100 purchase while traveling abroad and your foreign transaction fee is 3%, you'll pay an extra $3, which will show up as a separate line item on your bill.
Credit card processing fees typically cost a business 1.5% to 3.5% of each transaction's total. For example, you'd pay $1.50 to $3.50 in credit card fees for a sale of $100.
An excess transaction fee happens when savings account holders withdraw over limits banks may impose, typically six free withdrawals and transfers per month.
There are a few ways of legally passing on credit card fees to customers. Some are direct, and some are indirect. Adding a surcharge to cover the credit card fee is the more direct method while incentivizing cash payments is indirect.
Understanding Credit Card Processing Fees. Businesses are charged a credit card processing fee, also known as a merchant fee, every time a customer pays with a credit card. Retailers are required to pay this fee, typically ranging between 1.5% and 3.5% per transaction.
Surcharging is widely accepted in the US except in Maine, Massachusetts, Connecticut, and Puerto Rico. Illinois, Colorado, Georgia, Kansas, Texas, Nevada, New York, South Dakota, New Jersey, Minnesota, California, Florida, Oklahoma, Michigan, and Montana allow surcharging with certain contingencies.
Use a different payment method.
Merchants often charge convenience fees or surcharges when credit cards aren't a standard payment method. If you have a rent, utility or tax bill, consider paying by check or electronic transfer instead.
While these will vary by provider and card type, here's a rough breakdown of what to expect for each transaction: Merchant Service Charge (MSC): anywhere from 0.25%–3% depending on card type and card issuer. Interchange fees: 0.2% for debit cards and 0.3% for credit cards.
Credit Card swipe charges can vary but typically amount to around 2% of the transaction value for physical card transactions and 2.3-2.5% for online transactions.
The fees go toward the cost of securely sending payment information over the card network, authorizing and funding credit card transactions, reducing fraud, and offering reward programs like cash back and points, payment companies said.
They can avoid these fees by paying with cash or debit instead. The best way to implement a surcharge program is through Nadapayments. Nadapayments eliminates the interchange rate, providing you with a one-stop-shop to process debit and credit card payments.
A transaction fee is a fee charged when making balance transfers, direct deposit or check cash advances, or other bank cash advances, such as ATM cash advances, with your credit card. A transaction fee may also be charged if you make a foreign transaction.
The Competition and Consumer Act 2010 (Cth) prohibits merchants from applying excessive card payment surcharges – this is defined as charging a higher amount than what it costs the merchant to use any particular card payment type.
In most cases, credit card processing fees will run between 1.5% to 4% of the total value of a transaction. A $1,000 transaction, therefore, could have fees ranging from $15 up to $40. The overall impact depends on your margins.
Average Credit Card Processing Fees Explained (2025)
The quick answer: the average credit card processing fee cost for card-present transactions ranges from 1.70% – 2.05% for Visa, Mastercard and Discover. Amex fees are slightly higher.
Credit card surcharges can't exceed the cost of accepting the card or 4 percent, whichever is the lower amount, even if it costs the business more than that amount to process your credit card payment.
Yes, keyed-in transactions are 3.5% + 10 cents. These are considered Card not Present transactions (whether customer is in-person or virtual at time of transaction). Tap, insert, swipe transactions are all considered Card Present transactions and charged the same 2.6% + 10 cents rate, including Tap to Pay on iPhone.
As long as you pay off your statement balance in full before the due date, you can continue making purchases on your credit card without paying interest until the next statement due date. Keep paying off your balance in full each month, and you'll keep that interest-free grace period going indefinitely.
What's considered a “good” credit limit depends on a few key factors. If you're just starting out, a good credit limit for your first card might be around $1,000.