Average Credit Card Processing Fees

Credit card processing fees most commonly refer to the price merchants have to pay to accept credit card payments. Credit card processing fees typically range between 2% and 3% of each transaction. Cardholders rarely have to pay processing fees for using credit cards, but there are certain vendors and service providers that impose them.

Processing fees may also refer to the administrative fees charged by issuers for processing credit card applications. These fees are more common with unsecured cards aimed at people with damaged credit.

What You Need to Know About Credit Card Processing Fees

• Merchant processing fees: The fee merchants pay for accepting credit card payments and receiving service from acquiring processors is known as a merchant discount rate. This is usually between 2% and 3%, but can add up to as much as 5% of the total purchase price.
• Chargebacks: Aside from the merchant discount rate, merchants may also be subject to chargebacks. If someone disputes a credit card charge, the issuing bank makes a "retrieval request" and charges the merchant a penalty fee. The merchant may appeal, but if the issuer rules in favour of the cardholder, they will recover or charge back the customer's payment.
• Credit card surcharges and convenience fees: These are fees imposed by some merchants when customers use a credit card to pay at checkout in a way that's unusual for them. For example, they may be imposed when you pay over the phone. They are governed by state laws, credit card networks, and issuers. These are more common with government agencies or certain companies, when paying taxes or certain bills. You can avoid these by using your bank account to make ACH transactions, or by paying in person. Alternatively, you can avoid merchants that apply them.
• Application/Processing fee: Some issuers impose administrative charges to cover the cost of evaluating a credit card application. While rare, some credit cards aimed at people with damaged credit still charge these fees.

While processing fees are generally costs associated with merchants, cardholders should be aware of other types of credit card fees and learn how to avoid them.

Credit card transaction fees are charges that merchants must pay to process customer payments made with a credit card. These merchant charges are commonly referred to as credit card processing fees, but this usually refers to a combination of different fees, including interchange fees, processing fees, and assessment fees – all of which are separate fees involved in processing a credit card transaction. They're also informally referred to as swipe fees or merchant fees.

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It is legal to charge a credit card processing fee in 47 out of 50 states, if it's a surcharge, and in all states if it's a convenience fee. A surcharge is an added cost just for using a credit card, while a convenience fee is a charge for doing a transaction that's unusual for the merchant (e.g. over the phone). You'll usually have to pay convenience fees on things like taxes and tuition, too.

A credit card convenience fee is an extra amount of money a merchant charges for using a credit card in a transaction that's unusual for them. That means, for example, giving your credit card information over the phone or buying something online (e.g., movie tickets) when paying in person is customary. Not all merchants will charge them, though. Plus, credit card convenience fees will never come as a surprise. A merchant must clearly inform you of...

Some of the cheapest credit card processing companies are Helcim, Square, and Stax. It's worth noting, though, that credit card processing companies come with various pricing structures. So, the least expensive choice depends on your industry, sales volume and typical transaction size.

Some of The Cheapest Credit Card Processing Companies

• Helcim: Cheapest overall credit card processing.
• Square: For new and seasonal businesses.
• Stax: For high-volume businesses.
• Payment Depot...

The First PREMIER Bank Mastercard processing fee is $55 - $95, based on your creditworthiness. The card's processing fee has to be paid in full within 85 days of your application approval. Once the issuer processes your payment, they will send you the card. It usually takes 7-10 business days to receive your card in the mail after that.

Aside from the activation fee, the card also charges both monthly and annual fees. The monthly fee is $0 - $8 1st yr, $6.25 - $10.4 after and...

Wells Fargo credit card fees depend on the specific card, but the majority don't charge an annual fee, making them a cost-effective option. However, most cards include charges such as a 3% foreign transaction fee and balance transfer fees of 5% (min $5).

Wells Fargo also charges late payment fees of up to $40. The issuer does not charge application/processing fees, over-limit fees, or monthly fees. You can check Wells Fargo's list of credit card fees on your statement...

Secured credit card fees tend to be a lot lower than the fees charged by unsecured credit cards for people with bad credit. There are many secured credit cards with no annual fee and some with no foreign transaction fee, but most credit cards in general still charge fees for cash advances and late payments.

Secured credit cards also require a deposit to open, which is normally at least $200. The amount serves as the credit limit that you borrow...

The Victoria's Secret Credit Card does not have a processing fee. What's more, is that the card also has no annual or monthly fee. The only fees that the card has are a late payment fee (up to $41) and a returned payment fee.

The late payment fee is applied when the cardholder fails to make the minimum payment by the due date. On the other hand, the returned payment fee is charged if a payment made...

An application fee is a one-time fee charged by a financial institution when you submit an application for any kind of credit, regardless of whether you are approved or not. For example, a lender may charge you when you apply for a loan or a credit card. This fee is intended to cover the costs of processing the loan application, including credit checks and administrative tasks.

This fee is becoming increasingly rare, especially among...