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Understanding Credit Card Processing Fees for Your Business

Updated: Jun 8, 2023

Credit card processing fees are often a mystery to business owners and CFOs who have not done their research.

It is important to understand the cost of credit card processing for your business, as it can make a big difference in your bottom line.

“Knowing the details of card processing fees can help you save money on credit card transactions and make better financial decisions.”

Types of Credit Card Processing Fees

Credit card processing fees vary by merchant and processor, but they generally fall into three categories: interchange fees, assessment fees, and transaction fees. Interchange fees are charged by payment networks such as Visa and MasterCard; these vary depending on the type of card used (e.g., corporate cards typically cost more) and the type of transaction (e.g., online payments typically cost more). Assessment fees are charged by the issuing bank; these vary depending on the size of the purchase and how it was made (e.g., swiped vs keyed). Transaction fees are charged by your payment processor; these vary depending on how you process payments (e.g., in-person vs online).

How to Reduce Your Credit Card Processing Costs

“The most effective way to reduce your credit card processing costs is to negotiate with your payment processor for better rates.”

You should also consider shopping around for lower rates from other processors or merchants that may offer better deals than what you currently have. You should also look into whether there are any special programs or discounts available from certain payment networks that could help reduce your overall costs. Finally, be sure to keep track of all expenses related to credit card processing so you can budget accordingly and avoid any surprises down the road.


Understanding how credit card processing works is essential for businesses who want to save money while still providing customers with convenient payment options. By understanding the different types of credit card processing fees, shopping around for better rates, and taking advantage of special programs or discounts, business owners can save money while still providing customers with a seamless payment experience. With the right approach, businesses can minimize their costs while still maximizing their profits through efficient credit card processing solutions.


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