Costs

Credit card processing cost for small business

Credit card processing usually costs a small business a percentage of each sale, with published figures such as a 2.3% retail average and a 2.9% plus 30 cents online flat-rate example.

Those numbers come from the Small Business Payments Alliance and the U.S. Chamber of Commerce CO, and your own rate depends on volume, card mix, and pricing model. Avendo does not publish a merchant price because it does not bill merchants directly; it routes each transaction to the processor offering the best available rate in real time.

Last updated: November 2026

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How much does it cost a small business to process credit cards?

Most small businesses pay somewhere around the low single digits in percentage terms on each card sale, and the exact amount depends on how the processor prices it.

The Small Business Payments Alliance (opens in a new tab) reports that retailers pay an average of 2.3% on each credit card transaction to card issuers, payment networks, and acquirers. The U.S. Chamber of Commerce CO (opens in a new tab)gives an example where purchases through an online store cost 2.9% plus 30 cents, no matter what. These are market figures, not Avendo's own rates.

Rates for credit card processing: the numbers that matter

Volume threshold$10,000

Monthly processing level above which interchange-plus typically offers lower rates, per the U.S. Chamber of Commerce CO.

By the numbers: published processing cost figures

Retailers pay an average of 2.3% on each credit card transaction (Small Business Payments Alliance).
Online store purchases cost 2.9% plus 30 cents, no matter what, in one flat-rate example (U.S. Chamber of Commerce CO).
Companies that process over $10,000 monthly or negotiate interchange-plus pricing may pay lower processing fees (U.S. Chamber of Commerce CO).
Business checks can cost between $4 and $20 each, by a Bank of America estimate cited by the Small Business Payments Alliance, counting the check, shipping, and staff time.

What raises or lowers your rate?

Common factors in credit card processing cost, as described in this Avendo Merchant Hub guide.
Factor	Tends to raise cost	Tends to lower cost
Card presence	Online, card-not-present sales	In-person card-present sales
Monthly volume	Low volume on interchange-plus	Over $10,000 monthly, per the U.S. Chamber of Commerce CO
Pricing model	A fixed rate above your true card cost	Interchange-plus, or comparing processors per sale
Average sale size	Small orders with a fixed per-transaction fee	Larger orders, where a fixed fee matters less
Processor choice	One processor for every transaction	Routing each sale to the best available rate, as Avendo does

Estimate your monthly card fees

Enter your own figures, or start from one of the published examples above. The estimator uses only the numbers you type. It shows what a single fixed pricing setup would cost, so you have a baseline to bring to a conversation with Avendo.

Assumptions: one percentage and one fixed fee applied to every transaction; transactions equal monthly sales divided by average sale; no refunds, chargebacks, or account fees. Estimate only, not a quote.

What is the cheapest credit card processing for small business?

The cheapest credit card processing for small business is whichever processor gives each of your transactions the lowest rate, and that can change from sale to sale.

That is why Avendo does not pick one processor for you. It connects your checkout to multiple processors and chooses the best available rate in real time. Truly free processing is rare, because card issuers and networks charge on every transaction; Avendo's own compensation is handled with the processors, not billed to you. For a side-by-side view, see how processing options compare, or return to the guide on credit card processing for small business.

Common questions

Short answers from the full credit card processing FAQ.

How much does it cost a small business to process credit cards?: Costs are usually a percentage of each sale, sometimes plus a fixed per-transaction fee. The Small Business Payments Alliance reports that retailers pay an average of 2.3% on each credit card transaction. The U.S. Chamber of Commerce CO cites an example of online store purchases costing 2.9% plus 30 cents. Your real cost depends on pricing model, volume, and card mix. More in the FAQ
Why are businesses charging 3% to use a credit card?: Many businesses add about 3% to offset what card acceptance costs them. Card fees commonly sit near that level: the Small Business Payments Alliance reports an average of 2.3% for retailers, and the U.S. Chamber of Commerce CO cites 2.9% plus 30 cents as an example online flat rate. Passing the fee on helps protect thin margins. More in the FAQ
What is the cheapest way to accept card payments?: The cheapest option depends on your volume and card mix, not on one universal provider. The U.S. Chamber of Commerce CO notes that companies processing over $10,000 monthly or negotiating interchange-plus pricing may pay lower fees. Avendo’s approach is to compare processors in real time and route each transaction to the best available rate instead of fixing one price. More in the FAQ
What is the least expensive credit card processing company?: No single company is least expensive for every business, because rates vary with volume, card type, and pricing model. A processor that is cheapest for one store can cost more for another. That is the problem Avendo addresses: it compares multiple PCI DSS-compliant processors and sends each transaction to the one with the best available rate at that moment. More in the FAQ
Is there free credit card processing for small business?: Truly free processing is rare, because card issuers and networks charge fees on every transaction. Offers labeled free usually pass the cost to customers or recover it elsewhere. Avendo does not bill or charge merchants directly; its compensation is handled between Avendo and payment processors. Merchants still pay processing fees to the processor that handles each sale. More in the FAQ
What is interchange-plus pricing?: Interchange-plus pricing passes the card network’s interchange cost through to you and adds a set processor markup on top. It is more transparent than a single blended rate. The U.S. Chamber of Commerce CO notes that the interchange-plus model typically offers lower rates to companies processing more than $10,000 monthly. More in the FAQ
Can I write off credit card payments for my business?: In general, the fees a U.S. business pays to accept credit cards are treated as an ordinary business expense, and many businesses deduct them. Tax rules depend on your situation and can change, so confirm with a qualified tax professional. Clear processing reports, like the ones Avendo provides, make these fees easier to total at year end. More in the FAQ
Is it illegal to charge 3% credit card fee?: Charging 3% is not illegal in most states if you disclose it clearly and it does not exceed your actual processing cost or the card network’s cap. Some states restrict surcharges altogether. Lowering your underlying processing cost, which is the purpose of Avendo’s real-time routing to the best available rate, can reduce the need for a surcharge. More in the FAQ

Bring your numbers to Avendo

Share your monthly volume and current statement with Avendo, and ask how routing each sale to the best available rate would apply.

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