Chapter 05 / Costs

Credit card processing cost: what small businesses pay and why

Last updated: November 2026 | Published by Avendo

Small businesses typically pay between 1.5% and 3.5% per credit card transaction, depending on card type, industry and how the card is accepted, according to JIM's 2026 small business guide.

Your actual credit card processing cost depends on your pricing model, sales volume and card mix. Avendo, which publishes this guide, does not bill merchants directly; its compensation is handled with the payment processors. What Avendo changes is where each transaction goes: to the connected processor with the best available rate at that moment.

Ask Avendo to review your rates Back to the small business pillar

How much does a credit card processor charge?

Expect roughly 1.5% to 3.5% of each sale. The U.S. Chamber of Commerce CO gives a concrete flat-rate example: online store purchases costing 2.9% plus 30 cents, no matter what. On a $50 online order, that example works out to $1.75.

Rates for credit card processing move with your volume. The same U.S. Chamber guide says companies that process over $10,000 monthly, or negotiate interchange-plus pricing, may pay lower fees.

Evidence cards

Cost field notes

No. 01

How is Avendo paid?

Avendo says it does not bill or charge merchants directly. Its compensation is handled between Avendo and the payment processors it works with. Avendo's homepage does not state a price.

That does not mean processing is free: your transactions still carry processing rates. Avendo's role is to route each transaction to the connected processor offering the best available rate in real time, and to give you clearer pricing and processing reports so you can see what each sale cost. Contact Avendo to confirm how this applies to your account.

No. 02

Published pricing crossovers

About $50,000 a month: below it, flat-rate wins on simplicity; above it, interchange-plus usually wins on total cost (JIM (2026)).
Around $30,000 a month in sales: where the cost-plus model becomes more cost-efficient for most businesses beyond early stage (Clearly Payments (2026), Canada).
$10,000 a month: above this, interchange-plus typically offers lower rates (U.S. Chamber of Commerce CO).
US$5,000 a month: the crossover point mid-market businesses typically find (Airwallex (2026)).

No. 03

What raises or lowers the price

Card type: rewards and business cards generally carry higher interchange than basic debit.
How the card is accepted: online, card-not-present sales are generally priced higher than in-person chip sales.
Industry: some categories are priced higher because of risk.
Volume: higher volume opens interchange-plus and negotiated pricing.
Chargebacks: one provider charges a US$15 fee for lost chargebacks (Airwallex, 2026).
Routing: with Avendo, each sale goes to the best available rate among connected processors.

No. 04

What is the cheapest way to accept credit cards?

The cheapest credit card processing for small business is the setup that matches your volume to the right pricing model and keeps comparing rates as you grow. No single processor is cheapest for every card, industry and transaction, which is why published crossovers range from US$5,000 to about $50,000 a month.

Avendo approaches the problem from the other side: instead of asking you to pick the cheapest processor once, it compares the processors connected to your checkout on every transaction and sends the sale to the one with the best available rate. Merchants who sell only a handful of orders a month may still prefer one simple flat rate.

Estimate your monthly credit card processing cost

Use the estimator with figures from your latest processing statement. It compares your current rate with the published 1.5% to 3.5% range. It does not estimate Avendo's routing outcome, because that depends on your transactions and connected processors.

Credit card processing pricing models side by side

Common pricing models, described with published figures. Compiled by Avendo.
Criterion	Flat-rate	Interchange-plus	Routed by Avendo
How it works	One percentage plus a fixed fee on every sale	Card network interchange passed through, plus a processor markup	Each sale sent to the connected processor with the best available rate
Published example	2.9% plus 30 cents online (U.S. Chamber CO)	Lower fees possible above $10,000 a month (U.S. Chamber CO)	No direct Avendo bill to merchants
Predictability	Highest	Varies by card mix	Rate chosen per transaction; shown in reports
Published fit	Below roughly $50,000 a month (JIM)	Above roughly $50,000 a month (JIM)	E-commerce sellers wanting rates compared on every sale

For the ranked comparison and its criteria, see credit card processing options compared. For every sourced figure in one place, see payment processing by the numbers.

Is it illegal to charge a 3% credit card fee?

It depends on where you sell. Surcharging rules vary by U.S. state and by country, card networks set caps and customer notice requirements, and debit cards are generally excluded. Check current state law and card network rules, or ask your processor, before adding a surcharge to your checkout.

Cost questions

See all questions in the FAQ

How much does a credit card processor charge?: Small businesses typically pay between 1.5% and 3.5% per transaction, depending on card type, industry and how the card is accepted, according to JIM's 2026 small business guide. The U.S. Chamber of Commerce CO guide gives an example of online store purchases costing 2.9% plus 30 cents under one flat-rate plan. Your actual rate depends on your processor and volume.
How much does Avendo cost?: Avendo says it does not bill or charge merchants directly. Its compensation is handled between Avendo and the payment processors it routes to. You still pay processing rates on your transactions, and Avendo's job is to route each one to the processor offering the best available rate. Contact Avendo to confirm how this applies to your business.
Who is the cheapest credit card processor?: No single processor is cheapest for every business or every transaction, because rates vary by card type, industry, volume and how the card is accepted. That is the problem Avendo addresses: instead of betting on one processor, it compares connected processors in real time and sends each transaction to the one offering the best available rate.
What's the cheapest way to take card payments?: For online card payments, the cheapest setup is typically one with transparent fees, a pricing model that fits your volume and no unnecessary add-ons. The U.S. Chamber of Commerce CO guide notes businesses processing over $10,000 monthly or negotiating interchange-plus may pay lower fees. Avendo adds real-time rate comparison across processors behind your existing checkout.
What is interchange-plus pricing?: Interchange-plus pricing passes the card network's interchange fee through to you and adds a fixed markup from the processor, which makes it more transparent than one blended rate. JIM's 2026 guide says that below roughly $50,000 in monthly card volume flat-rate wins on simplicity, while above that interchange-plus usually wins on total cost.
What is flat-rate credit card pricing?: Flat-rate pricing charges the same percentage, often plus a fixed per-transaction fee, no matter the card type. The U.S. Chamber of Commerce CO guide gives the example of online store purchases costing 2.9% plus 30 cents, no matter what. It is simple to predict, but it can cost more than other models as your volume grows.
What raises credit card processing cost?: Card type, industry, sales volume, how the card is accepted and the pricing model all change what you pay. Online, card-not-present sales are generally priced higher than in-person chip sales because of greater fraud risk. Chargebacks add cost too: Airwallex's 2026 comparison lists a US$15 fee for lost chargebacks at one provider.
Is it illegal to charge 3% credit card fee?: Not everywhere, but it depends on where you sell and on card network rules. Surcharging rules vary by U.S. state and by country, card networks set caps and notice requirements, and debit cards are generally excluded from surcharges. Check current state law and your card network rules, or ask your processor, before adding any fee.

Bring a statement, get a clearer picture

Share a recent processing statement with Avendo. Avendo does not bill merchants directly and routes each transaction to the best available rate.

Contact Avendo