Merchant Account Fees: Every Charge Explained (2026)

Merchant account fees are the charges you pay to accept card payments. They cover the banks that issue cards, the card networks, and the company that processes your sales. Most are taken out of each sale before the money reaches your bank account.

This guide walks through each charge, shows what US businesses typically pay, and explains which parts of your bill you can control. Use it to read your next statement with confidence.

TL;DR

• Every card sale carries three layers of cost: interchange, network assessments, and your processor’s markup.
• US interchange typically runs between 2% and 3% of the sale, and the combined Visa and Mastercard credit average reached 2.36% in 2025.
• Interchange is set by the card networks. Your processor’s markup and your pricing model are the parts you can negotiate and choose.
• Flat-rate, interchange-plus, and tiered pricing bill the same sale in very different ways. Interchange-plus shows the cost most clearly.
• Dual pricing and cash discount programs can offset fees, and the rules differ by state and card network.

Table of Contents

• What merchant account fees actually are
• The fees you will see on a statement
• What average credit card processing fees look like in the US
• Flat-rate, interchange-plus, and tiered pricing compared
• What you can control
• Surcharging, dual pricing, and cash discounts
• Reading your statement: a practical walkthrough
• Fees by business type
• Choosing a provider and understanding who you are dealing with
• Get a clear quote from Merchant Solutions Corp.
• FAQ
• Sources

What merchant account fees actually are

A merchant account lets your business accept card payments. Each time a customer pays by card, several parties take a share of the sale.

The U.S. Chamber of Commerce breaks every card transaction fee into three parts:

1. Interchange fees. The card networks set these, and they are paid to the bank that issued the customer’s card.
2. Assessment fees. Card associations such as Visa and Mastercard charge these for running their infrastructure.
3. Processor markup. This is your merchant services provider’s own fee.

When people search for merchant services fees explained, this three-layer model is the answer. Everything else on your statement is a variation on one of these layers, or a separate service charge.

Where the money goes

Interchange is the largest layer by far. Beast Insights estimates that interchange typically makes up 75% to 85% of total processing expense. The assessments and your processor’s markup share the rest.

That split matters when you compare quotes. A provider can advertise a low markup, but the interchange underneath is the same for everyone who accepts the same card.

The fees you will see on a statement

Statements vary by provider, but the same families of charges appear again and again. Here is what each one means.

Percentage-based and per-transaction fees

The core cost is a percentage of each sale plus a small fixed amount per transaction. A common flat-rate example for online sales is 2.9% plus $0.30.

Here is what that looks like on a $50 online sale:

• 2.9% of $50 is $1.45.
• Add $0.30 and the total fee is $1.75.
• That is 3.5% of the sale, higher than the headline percentage.

The fixed amount weighs more on small tickets. A coffee shop, a salon retail counter, or a quick-service restaurant feels this more than a contractor invoicing large jobs.

Monthly fees

Many providers charge a monthly account or software fee. One published overview puts typical monthly fees between $15 and $250, depending on your business needs and the tools you require.

This range covers a wide span of setups. A basic account for a home-based seller sits at one end. A multi-terminal restaurant with reporting and integrations sits at the other.

Gateway fees

If you sell online, over the phone, or by invoice, you need a payment gateway. The gateway securely passes card data from your checkout to the processor.

Some providers bundle the gateway into the monthly price. Others bill it separately. Always check which applies to you.

At Merchant Solutions Corp., our Gateway + eCheck plan is $25 per month.

ACH and eCheck fees

Bank-to-bank payments run on a different rail from cards, and they carry their own event-based charges. We publish ours on our ACH and eCheck page:

These fees apply only when something happens to a payment, such as a bounced item or a bank updating account details. Clean authorization practices keep them low.

Network and compliance fees

Many statements also include line items for card network access, statement delivery, security compliance, and chargebacks. Names differ between providers, so ask for a plain description of every line you do not recognize.

Some are small and flat. Others only appear when you have a dispute or miss a compliance requirement. A statement review once a quarter catches both.

What average credit card processing fees look like in the US

People searching for average credit card processing fees want one number. There is no single figure, but the published data gives a clear picture.

Interchange ranges

According to a Philadelphia Fed working paper, US interchange fees typically range between 2% and 3% of the transaction value. The same paper notes that the Durbin Amendment capped interchange paid to large debit card issuers.

That is why debit cards from large banks usually cost less to accept than credit cards.

Network averages

Visa and Mastercard together account for more than 80% of US credit card volume. Their average combined credit interchange rate reached 2.36% in 2025, up from 2.02% in 2010.

The same source reports that US merchants paid a record $198.25 billion in card processing fees in 2025, more than triple the 2009 total of $62.1 billion.

The spread between cards

Not every card costs the same. Published network schedules show credit interchange starting below 1.20% for certain supermarket and utility transactions and reaching 3.15% for non-qualified or premium rewards card volume.

The card your customer chooses drives the cost. A premium rewards card typically costs more to accept than a standard card.

Academic research points to the reason. The Philadelphia Fed paper notes that the average reward is about 1.45% of transaction value, and that rewards pricing affects merchant costs directly.

What this means for your business

A realistic planning range for total card acceptance cost is the interchange range of 2% to 3% plus assessments and markup. Your effective rate depends on:

• Your mix of credit, debit, and premium cards
• Your average ticket size
• Whether cards are swiped, dipped, tapped, or keyed in
• Your industry and risk profile
• Your pricing model

Calculate your own effective rate by dividing total monthly fees by total monthly card volume. That one number tells you more than any advertised rate.

Flat-rate, interchange-plus, and tiered pricing compared

Your pricing model decides how the three layers appear on your bill. This is where providers differ most.

Flat rate

Flat-rate pricing charges one percentage and one fee on everything, whatever the card type. It is easy to forecast and easy to explain to staff.

The same guide says flat rate suits businesses processing under roughly $10,000 per month, or owners who prefer simplicity.

Interchange-plus

Interchange-plus passes through the real interchange rate and adds a fixed markup. You see exactly what the network charged and exactly what your processor kept.

As volume grows past about $10,000 per month, the gap between flat rate and interchange-plus adds up quickly. That makes it the model most growing businesses move toward.

We offer Interchange-Plus alongside Clover Flat Rate and Clover Prime VIP. You can review the options on our merchant services page.

Tiered

Tiered pricing groups sales into Qualified, Mid-Qualified, and Non-Qualified buckets. The processor decides which bucket each sale lands in, and the same source notes that most transactions end up in the more expensive tiers.

If your current statement uses these labels, ask for a side-by-side quote on interchange-plus. The comparison takes minutes and shows where you stand.

What you can control

Here is the practical point. Interchange is set by the networks, and Beast Insights notes that it is not negotiable at any volume. Your leverage sits in two places: the processor markup and the pricing structure.

The published rate and the rate you pay are also different numbers. The same analysis explains that Visa and Mastercard update their schedules twice a year, in April and October. Check your statement after each update.

A short checklist

1. Find your effective rate. Divide total fees by total card volume for the last three months.
2. Identify your pricing model. Look for flat, interchange-plus, or tiered language.
3. List every recurring fee. Note monthly, gateway, statement, and compliance lines.
4. Match your hardware to your sales channel. In-person, online, and mobile sales each have their own rate profile.
5. Ask what changes at renewal. Know your term, and any equipment lease obligations, before you sign.

The payment methods you accept also shape cost. Trades and service businesses face the same choices on cards, bank transfers, and invoicing, and this guide to payment options for tradies shows how acceptance decisions connect to the way customers pay.

Hardware and software costs

Fees are not only about transactions. The point-of-sale system you choose carries its own monthly cost.

Our Union POS system is $79 per month. Our Clover options include the Clover Advantage plan at $0 to $99 per month. We also resell Square POS systems.

Free hardware programs with $0 upfront options exist to lower your starting cost. Read our guide on the hidden costs of free POS systems so you can compare programs on total cost, not only the upfront price.

Surcharging, dual pricing, and cash discounts

Many owners ask whether they can pass card fees on to customers. The short answer is yes in most states, within card network rules.

Surcharge rules to know

Visa’s merchant surcharge Q and A sets out the requirements:

• The surcharge is capped at the lesser of 3% or your average discount rate on that credit card.
• You must notify your acquirer at least 30 days before you begin.
• It applies to credit cards only, never debit or prepaid.
• You must disclose it at the point of entry, at the point of sale, and on every receipt.

Law firm Goodwin notes that Mastercard sets its limit at the lesser of 4% or your average effective discount rate. Nav adds that the surcharge must appear as a separate line item on the receipt, and cannot exceed your actual processing cost.

State law

Some states restrict credit card surcharges. The National Conference of State Legislatures lists states including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas, along with Puerto Rico, as having laws that prohibit consumer surcharges on credit cards.

If your business operates in one of these places, talk to your account manager about which fee-offset structure fits your location before you change your pricing.

How dual pricing fits in

Dual pricing shows two prices: a cash price and a card price. It is a common way for businesses to offset processing costs while keeping the process visible to customers.

Our cash discount and dual pricing program is $0 per month. We configure signage, receipts, and terminals so the program is clear at every step of the sale.

Our perspective on merchant account fees

Most owners we speak with are not upset about paying fees. They are upset about not understanding them.

We believe a statement should be readable by the person who owns the business, not only by an accountant. That is why we start every conversation with the three layers: interchange, assessments, and markup. Once you can see them, you can judge any offer fairly.

Our approach is built around lower upfront costs, fast setup, and transparent pricing with no hidden surcharges. Free hardware programs and $0 upfront options let you start accepting payments without a large equipment bill. Dual pricing lets you offset processing fees on the terminal you already use.

Every account also comes with an assigned account manager. When a statement line looks odd, you have one person to ask, and we want that answer to be clear and quick.

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Reading your statement: a practical walkthrough

A fee review does not need special software. Pull your last three statements and work through them in this order.

Step 1: Total the month

Add every fee line, including monthly, gateway, compliance, and per-transaction charges. Then divide by card volume. This is your effective rate.

Step 2: Sort by layer

Mark each charge as interchange, assessment, markup, or service. If your statement uses a single blended line, request a detailed breakdown.

Step 3: Compare against the ranges

Compare your interchange layer with the 2% to 3% range. A blended effective rate far above your card mix would suggest should lead to a closer look at the markup.

Step 4: Check the one-off charges

Look for ACH returns, chargebacks, and any equipment or early termination terms. These rarely show up in a headline rate.

Step 5: Match the model to your volume

If you process more than about $10,000 per month on a flat rate, request an interchange-plus quote. If you are smaller and value predictability, a flat structure may remain the better fit.

Fees by business type

Your industry affects both your card mix and your best setup.

• Restaurants and quick-service. Small tickets make per-transaction fees more visible. Online ordering and kiosks add channels with their own cost profile. See our guide to online ordering for restaurants.
• Retail and convenience stores. Higher volume and mixed debit and credit make interchange-plus attractive. Our gas station POS guide covers fuel-specific needs.
• Online sellers. A gateway and card-not-present rates apply. Our eCommerce payments page outlines the setup.
• Service businesses and professionals. Invoiced payments often pair well with ACH. Our ACH processing solutions cover bank-to-bank collection.
• Specialty and high-risk businesses. Underwriting and setup differ, so a provider that supports your industry from the start matters. Our guide to online gambling payment processing shows what that looks like.

Choosing a provider and understanding who you are dealing with

Providers come in several forms, from direct processors to independent sales organizations. Knowing which type you are signing with helps you understand who supports you when something goes wrong. Our article on the truth about ISOs and MSPs explains the structure.

Whichever provider you choose, ask for these in writing:

• Your pricing model and every rate
• All monthly and annual fees
• Equipment terms, whether purchase, lease, or free program
• Contract length and what happens at renewal
• The name of the person who supports your account

Get a clear quote from Merchant Solutions Corp.

If you want to see how your current fees compare, we will walk through your statement with you. We serve restaurants, retail, and service businesses across the US, Canada, and the Caribbean.

Explore our payment processing and pricing options, or start on our homepage to apply. You can get approved and start accepting payments with fully configured equipment and support from onboarding onward.

FAQ

How much are merchant service fees?

US interchange typically runs between 2% and 3% of the sale, and the combined Visa and Mastercard credit average was 2.36% in 2025. Your processor adds assessments and a markup on top. Your effective rate is total fees divided by total card volume.

What is the difference between a merchant account fee and an interchange fee?

Interchange is one component of your merchant account fees. It goes to the card-issuing bank and is set by the networks. The other components are assessments from the card associations and your processor’s markup.

Can a merchant charge credit card fees to customers?

In most states, yes, within card network rules. Visa caps the surcharge at the lesser of 3% or your average discount rate, applies it to credit cards only, and requires 30 days’ notice to your acquirer. Several states, including California, Florida, New York, and Texas, as well as Puerto Rico, restrict credit card surcharges.

Which pricing model is best for a small business?

Flat rate suits businesses processing under roughly $10,000 per month that want simple, predictable billing. Interchange-plus becomes more attractive as volume grows because it shows each cost separately. Your account manager can model both on your real statement.

Can I lower my merchant account fees?

Yes, in two places. You can negotiate your processor’s markup, and you can choose a pricing structure that fits your volume. Dual pricing or a cash discount program can also offset fees on the sales that carry them.

Sources

• How Credit Card Processing Works: A Guide for Small Businesses (U.S. Chamber of Commerce)
• Interchange Fees for Subscription Businesses (Beast Insights)
• Interchange Fees in Payment Networks (Federal Reserve Bank of Philadelphia)
• Average Credit Card Processing Fees and Costs in America (The Motley Fool)
• Merchant Agreement: Fees, Chargebacks, and Contract Terms (LegalClarity)
• U.S. Merchant Surcharge Q and A (Visa)
• Want to Have Customers Cover Payment Processing Fees? (Goodwin)
• Credit or Debit Card Surcharges Statutes (NCSL)
• Can a Business Charge a Credit Card Fee? (Nav)
• Merchant accounts: Overview, benefits, and cost (Investopedia)

Recommended

• Merchant Services & Payment Processing

This article provides general educational information and does not constitute legal or regulatory advice. Laws, card-network rules, and processor requirements may change. Businesses should verify the requirements that apply to their location, industry, processor, and payment program before implementing any payment or pricing practice.