![]() The effective credit card processing rate, also known by calculating total fees divided by total volume, does give you a good representation of what your all-in costs are. This is another question we frequently receive, and it is another one that is hard to answer because of how subjective it can be. How to Calculate Average Credit Card Processing Fees If you would like to have one of Merchant Cost's payments experts take a look, you can submit your statement to our analyzer here. If it is significantly more, then something is most likely incorrect. ![]() In addition to the interchange fee, you will be charged the service markup that was pre-negotiated with your current credit card processing company.Ī good way to see your average credit card processing fees with AmEx is to figure out exactly what you are paying for the other card brands. Each credit card has a different rewards program associated with it, which will dictate the interchange fee that is passed along to your business. To give an average credit card processing fee for AmEx is difficult because of the different AmEx credit cards your customers may have. Most credit card processing companies try to use this as a money grab and claim the service markup-the revenue the credit card processor makes-needs to be much more than the other card brands, which is not true. When dealing with Opblue and your current credit card processing company, you will want to be careful. This new model offers the possibility of lower credit card processing fees but depends on the pricing negotiated with your current merchant services company and how you accept credit card payments. Recently, AmEx introduced a new credit card processing pricing structure called Opblue. We go into more depth on the issue in this blog post. If you wonder how AmEx can charge more than the other card brands, you are not alone. ![]() American ExpressĪs many business owners are aware, American Express (AmEx) tends to be its own monster in this industry, and you typically will pay more in fees compared to the other three major card brands if you accept it. Again, these credit card merchant rates can vary depending on numerous factors and should not be precise numbers for you to go by, but rather estimates. The average credit card fee cost for card-not-present transactions ranges from 2.25% – 2.50%. ![]() The average credit card processing fee cost for card-present transactions ranges from 1.7% – 2.05% for Visa, Mastercard and Discover. ![]() Average Credit Card Processing Fees Explained All these play vital roles in the average credit card processing fees your business will be charged monthly. These factors include the types of credit cards you accept, how you accept credit cards from customers and the processing markup that a credit card processor will charge you. Unfortunately, there is no easy answer, and the solution typically involves various moving parts. "What are the average credit card processing fees I should be paying?" This is the most common question we tend to get asked at Merchant Cost Consulting when merchants try to lower their credit card processing fees. By Colin O'Keefe, Merchant Cost Consulting ![]()
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