Merchant Fees Guide 2023

Features like available security measures, authentication tools, and chargeback prevention solutions are just as important. You should also consider features that also improve customer convenience, like an automatic credit card account updater. The payment gateway does not have a contract or early termination fees.

  • One estimate found that the 2022 swipe fee changes from Mastercard and Visa will increase merchant fees by $475 million despite fees being reduced in some categories.
  • Enterprise pricing includes custom discounts for businesses processing large volumes, resulting in significant cost savings for a business.
  • Credit card processing fees are what a business has to pay each team it processes a card payment.
  • By “hidden,” they mean fees that either they weren’t aware of or weren’t disclosed by the sales agent who set up their account.
  • Visa and Mastercard skipped fee changes in 2020 and 2021 due to the COVID-19 pandemic, but updated interchange fees in 2022.
  • The Payments Card Industry Data Security Standard (PCI DSS, or PCI for short) is a set of guidelines that all merchants who accept card payments have to follow.
  • Once you create a shortlist of payment gateway options, read online reviews to compare clientele satisfaction.

This is the entity in charge of handling debit and credit card transactions on behalf of your business. Transactional fees are what you’ll pay every time you accept a credit or debit card payment. They usually consist of a percentage of the transaction’s value, or a percentage plus a flat rate, for example Stripe which charges 1.4% +20p. You’ll also want to learn how to calculate your effective rate for credit card processing, which is the simplest and most accurate way of comparing overall costs between different providers.


For international payments, the flat rate per transaction is 2% plus $0.25. Unlike many other gateways on this list, currency conversion is included at real exchange rates. The interchange fee is a payment made directly to the card issuer for the swiped transaction. Fees may vary based on the type of card being used, the amount of the transaction and the industry the business is in. For example, credit card companies may charge higher interchange fees for online purchases since fraud is a bigger problem with these types of transactions.

If you aren’t PCI-compliant and/or your system isn’t sending along that PCI verification to the participating banks in a transaction, you may be charged a PCI non-validation fee. If you ever have to make a call to authorize a transaction, you’ll be charged a small fee. If a processor charges on revenue and you don’t which a certain floor, they may charge you for not reaching it.

What to Consider When Researching Gateway Pricing

A discounted rate of 2.6% plus 30 cents per transaction applies to businesses using the Square Online Store Premium plan. Card not present transactions and card on file transactions incur a rate of 3.5% plus 15 cents, while ACH bank transfers cost 1% with a $1 minimum. Typical interchange fees consist Merchant Account Fees And Payment Gateway Pricing of a percentage of the transaction’s value, plus a flat rate on top. Most rates hover between 0.4% and 2.75% of the payment, plus a fee of around 10 to 20 pence, for example Revolut which charges 1% +20p. The interchange fees are set by each network, and they vary depending on the issuer.

  • Accepting payments from customers is non-negotiable for businesses, but processing costs can vary widely.
  • Worst yet, fees often aren’t disclosed during the sales process and instead appear out of nowhere as an unexpected surprise on your monthly processing statement.
  • This way, it’s easy to see what you’re paying because you have to, and what you’re paying as arbitrary concessions to the provider.
  • The Merchant Service Provider (MSP) facilitates transferring funds to your bank account.

Annual fees can run into hundreds of dollars, a significant expense for a small business. Finally, there is no standardization among merchant services providers with regard to fees. While most providers tend to stay within industry averages, each provider is free to set its own fee schedule using whatever criteria it deems appropriate.

Do you support multi-currency transactions?

The subscription model has much more expensive monthly fees in exchange for much cheaper transaction fees. This model is a popular choice because it’s affordable for all types of businesses and it has a transparent fee structure. On every sale, you’ll know exactly how much the card network and your credit card processor charged.

Merchant Account Fees And Payment Gateway Pricing

Here are the fees you can expect to pay on every transaction your business takes when accepting a credit or debit card payment. Our research shows that transaction fees can be anywhere from 0.4% to 2.75%. Some providers will charge different fees depending on the type of transaction, such as an in-person transaction or an online transaction.

Average Credit Card Processing Fees and Costs

In this article, we’ll explain what merchant account fees are, which fees are commonly charged, and how much you should expect to pay for them. Basic mobile readers are available for $20 to $50, although some payment processors (Square included) offer one for free. Terminals and registers are more expensive, as a standard terminal can cost $150 and an advanced register can cost $1,000. Note that even though this model is called “interchange-plus,” the payment network’s assessment fee is charged as well. American Express also uses transaction amounts to determine its interchange fees, with higher-value transactions costing merchants less. The good news is that if you opt for a payment facilitator such as Square, Zettle, or SumUp to process your payments, you won’t have to worry about this.

Merchant Account Fees And Payment Gateway Pricing

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