Credit card processing fees are the fees a merchant pays for each credit or debit card sale. This fee is predetermined by your merchant services provider and can include fees such as interchange fees, assessment or service fees, chargeback fees, and more.

A credit card processing fee is what merchants pay the payment-card issuer each time they accept a credit card payment. Credit card issuers charge different types of fees for each transaction, including interchange and assessment fees. In addition, payment processors charge their own fees.

A credit card processing fee is made up of the transaction rate plus any monthly and incidental fees imposed by the payment processor or merchant services provider. The transaction rate is made up of three parts— interchange, assessment, and merchant services markup fees.

Credit card processing fees are paid by the vendor, not by the cardholder. Businesses can pay credit card processing fees to the buyer’s credit card issuer, to their credit card network and to the payment processor company. On average, credit card processing fees can range between 1.5% and 3.5%.

Each time a merchant accepts a credit card payment, they pay a credit card processing fee. On average, this fee ranges from 1.10% to 3.7% of the total purchase amount. These fees can be negotiable, especially for merchants with many transactions.