Credit card processing fees are what a business pays to accept a card payment. They have three parts. Interchange goes to the bank that issued the card and is set by the card network. Network fees go to the network itself. The processor's fee pays for the service. Under flat-rate pricing these are combined into one rate, such as Stripe's 2.9% + 30¢ for domestic cards. Under interchange-plus pricing they are passed through separately. Credit cards usually cost more than debit cards from large banks, whose interchange is capped by federal rule.
What are credit card processing fees made of?
Three parts, whichever processor you use:
- Interchange. Paid to the bank that issued the card. The card network sets the rate in a published schedule.
- Network fees. Charged by the card network itself. Stripe groups these with interchange as "network costs."
- The processor's fee. What your processor charges for its service. It's set in your agreement.
Visa notes that merchants don't pay interchange directly. They pay a "merchant discount" to their own financial institution, which covers it. That is the merchant discount rate.
How are processing fees priced?
There are two common models.
| Flat rate | Interchange-plus | |
|---|---|---|
| What you see | One rate for every card | Network costs plus a markup |
| Example | Stripe standard: 2.9% + 30¢, domestic cards | Stripe custom pricing |
| Cost per payment | Fixed, whatever the card | Changes by card and payment |
On Stripe's standard pricing, a manually entered card adds 0.5%, an international card adds 1.5%, and currency conversion adds 1%.
Why do debit cards cost less than credit cards?
Mainly because of interchange. For debit cards from issuers with $10 billion or more in assets, Regulation II caps interchange at 21 cents plus 0.05% of the payment, plus 1 cent for eligible issuers. Credit card interchange has no federal cap.
Example interchange on one $1,108.33 card-not-present payment, from Visa's US schedule effective April 18, 2026:
- Regulated debit at 0.05% + $0.21, plus $0.01: $0.77.
- Credit, Product 1 program, All Other Products: 1.89% + $0.10, which is $21.05.
- Credit, Product 1, Visa Signature Preferred: 2.50% + $0.10, which is $27.81.
That gap only reaches the business on interchange-plus pricing. On a flat rate, every card costs the same.
What do fees add up to on a payment plan?
Each installment is its own card payment. On Stripe's standard 2.9% + 30¢:
- A $1,500 deposit costs $43.80.
- Each $1,108.33 installment costs $32.44.
- A $14,800 plan as a $1,500 deposit and 12 payments comes to about $433 in card fees.
Are there other card fees?
Yes, on Stripe's standard pricing:
- Disputes. $15 for each chargeback received, and $15 more to counter one, returned if you win.
- Refunds. No fee on card refunds, but the processing fee on the original payment is not returned.
On Stripe IC+ pricing, per-authorization fees apply to declined attempts too, and networks can bill a payment's fees up to two months later.
How can a business lower them?
- Offer bank payment. Stripe's ACH Direct Debit is 0.8%, capped at $5.00.
- Surcharge credit cards. A surcharge recovers the card cost where your state allows it. Visa caps it at the lower of your MDR for that card or 3%, and debit and prepaid cards can't be surcharged.
- Compare pricing models. If many customers pay by debit, interchange-plus may cost less than a flat rate.
- Stripe pricing
- Stripe Support: Understanding Blended & Interchange+ pricing
- Stripe Support: Reviewing IC+ fees, Stripe fees and Network Costs
- Visa: Rates, fees and rules
- Visa: Visa USA Interchange Reimbursement Fees, 18 April 2026 (PDF)
- Visa: U.S. Merchant Surcharge Q and A, version 02152024 (PDF)
- eCFR: 12 CFR part 235, Regulation II
Every figure on this page was checked against these sources on Oct 6, 2026. General information, not legal or tax advice.