Ranked list
The fastest way to lower credit card processing costs is to measure your effective rate, then work on interchange, routing, markup and extra fees in that order.
Last updated: Published by Avendo
Start with your real numbers, then work on the biggest share of the bill first. The Card Fee Field Guide by Avendo ranks seven practical strategies by how much of your total fee they touch and how widely they apply, with each reason stated plainly.
What 0.20% is worth
Total your fees and card sales for the last 90 days, as Clearly Payments recommends, and divide. Use the calculator if you like.
Ranked first because every other step depends on knowing your real starting number.
Revolution Payments estimates interchange is 75 to 90 percent of total fees and is often left unexamined. Ask your processor which interchange categories your sales fall into and whether any could qualify for a lower one.
Ranked second because interchange is the largest share of the bill.
Rather than sending every sale to one processor, a routing platform such as Avendo connects your existing checkout to multiple PCI DSS-compliant processors and routes each transaction in real time to the processor offering the best available rate, with processing reports showing the result.
Ranked third because it works on every transaction without changing your checkout.
Revolution Payments puts markup at 10 to 25 percent of total fees. Bring your 90 day numbers and competing quotes to the conversation.
Ranked fourth because markup is negotiable but is a smaller share of the total.
Account, statement, gateway and compliance fees all raise your effective rate. Ask which are required and which can go.
Ranked fifth because these fees are easy to cut once you list them.
Paystand suggests flat rate can suit businesses under $10,000 a month. As volume grows, compare interchange-plus and membership pricing.
Ranked sixth because it matters most when your volume has changed.
A 10 cent fixed fee is 0.1% of a $100 order but 2% of a $5 order. Clearly Payments flags any business with lots of sub-$50 tickets as one to check.
Ranked seventh because it mainly affects stores with many low value orders.
Option
Some businesses add a surcharge to card payments instead of lowering their costs. Rules vary by location, card networks cap surcharges and require disclosure, and network rules generally do not allow surcharges on debit cards. Check your state's rules and your processor's guidance first.
Trade-off
Lowering your effective rate keeps checkout prices the same for every customer. Many stores try the seven steps above before deciding whether a surcharge is worth the extra rules. See the FAQ on card fee rules.
Want to know how routing would work with your checkout? Contact Avendo.
Back to the credit card processing cost guideThis comparison was written by Avendo, the business that publishes this guide. It is not independent. Every entry was judged on the same criteria, using the same kinds of published facts:
Third-party figures are quoted exactly as their sources published them. Read the full methodology.
Short answers here. Every question is also on the full FAQ page.
Start by calculating your effective rate for the last 90 days, as Clearly Payments recommends. Then compare that number against quotes built on the same sales data, remove fees you do not need, and check whether routing each transaction to the best available rate would lower your total.
See this answer in the FAQ: How do I lower my credit card processing fees?You cannot avoid them entirely if you accept cards, but you can lower them. Audit your effective rate, cut avoidable monthly fees, negotiate markup and consider routing across processors. Clearly Payments shows that on $1,000,000 of annual card volume, cutting the effective rate by 0.20% saves $2,000 per year.
See this answer in the FAQ: How do I avoid credit card processing fees?Processor markup is often negotiable, while interchange and assessments usually are not. Revolution Payments describes assessments as non-negotiable and notes that most businesses spend their time negotiating markup, which it estimates at 10 to 25 percent of total fees. Steady volume and a clean history usually help.
See this answer in the FAQ: Are credit card processing rates negotiable?Routing sends each transaction to whichever connected processor offers the best available rate at that moment, instead of sending every sale to one processor. Avendo's platform works this way: it connects a checkout to multiple processors, routes each transaction in real time and gives merchants clearer pricing and processing reports.
See this answer in the FAQ: How does multi-processor routing lower costs?Compare recent statements line by line to find which fee changed: interchange, assessments, markup or a monthly fee. Card networks update interchange periodically, while markup and monthly fees are set by your processor. If markup rose, ask your processor why and compare quotes from alternatives.
See this answer in the FAQ: What should I do if my fees went up without notice?Often yes, through a surcharge or a cash discount program, provided you follow card network rules and the laws where you operate. Requirements typically include clear disclosure before payment and limits on the amount. Confirm the details with your processor and a local adviser, since rules differ by location.
See this answer in the FAQ: Can I charge my customer a credit card processing fee?Avendo connects your existing checkout to multiple payment processors and routes each sale to the best available rate. Tell the Avendo team about your store and ask how it would work for you.
Published by Avendo
