Also called: Merchant Processing Rates, Per Transfer Fees, Per-Item Fee, Per-Transfer Fee, Processing Fee, Processing Fees, Swipe Fees, Transaction Fee, Transaction Fees
What merchant processing fees are
Merchant processing fees are what you pay to accept and process card transactions. A quoted rate such as a percentage plus a fixed amount per transaction combines several charges, rather than one fee paid to one company. People also call them swipe fees, but that phrase is broader than interchange alone.
The largest components are interchange, paid to the customer’s issuing bank, and network fees paid to card networks such as Visa and Mastercard. Your processor adds its markup for handling transactions and providing services. Other charges can include monthly account or gateway fees, batch fees, chargeback fees, and PCI non-compliance fees.
Your total processing bill has several owners, but only the processor’s markup is negotiable.
How the pricing works
With flat-rate or bundled pricing, you pay one combined rate regardless of the card’s underlying costs. Interchange-plus pricing separates interchange and network fees from your processor’s markup. Tiered pricing sorts transactions into categories such as qualified and nonqualified, which can make it harder to see why a sale cost more.
The distinction matters because interchange and network fees are set outside your processor’s markup. As of 2026, Visa’s assessment is 0.14% on credit sales and 0.13% on debit and prepaid sales. Visa also charges an Acquirer Processing Fee of $0.0195 per credit authorization and $0.0155 per debit authorization. Mastercard’s assessment is 0.14% on sales, plus 0.01% on transactions of $1,000 or more, and its NABU fee is $0.0195 per authorization. These network charges are not processor markup, so negotiating your markup does not remove them.
Same sales, different transaction counts
| One $2,000 sale | $6.10 markup (illustrative) |
|---|---|
| 100 sales of $20 | $16 markup (illustrative) |
Illustrative markup only, using 0.30% plus 10¢ per transaction. Excludes interchange, network fees and other charges.
Where the fees appear on your statement
Look for separate lines for interchange, assessments or network fees, processor discount or markup, and per-authorization charges. Visa lines can include Assessment, APF and FANF. Mastercard lines can include Assessment and NABU. FANF is a monthly Visa fee based on locations for card-present businesses and card-not-present volume. Line names and grouping differ by statement, so compare the amount and calculation, not just the label.
A statement can also list monthly, batch, gateway, PCI, chargeback, or minimum fees. A per-authorization charge can apply to an authorization attempt, including one that is declined. That means the number of attempts, not only completed sales, can affect your bill.
What the fees mean for your costs
Percentage charges grow with sales volume; per-transaction charges grow with transaction count. In an illustrative example, processing $2,000 as one sale with a 0.30% markup and 10¢ per transaction costs $6.10 in markup. Processing the same amount as 100 sales of $20 costs $16. The example excludes interchange, network fees and other charges.
A low advertised rate can still produce a high bill if the processor adds monthly fees, authorization charges or a high markup. Compare your effective cost, total processing fees divided by card sales, and separate the processor’s negotiable markup from pass-through costs before judging a rate.
What you can actually change
- Separate the layers. Ask for a statement or pricing quote that shows interchange, network fees and processor markup separately. With interchange-plus pricing, you can see the markup you are negotiating.
- Compare your effective cost. Divide total processing fees by card sales, then compare that figure across months. Review transaction count too, since fixed per-transaction charges add up faster on many small sales.
- Audit added charges. Check monthly, authorization, batch, gateway, PCI and minimum-fee lines for charges you do not recognize. Compare each line with your contract and prior statements to spot new fees or increases.
Frequently asked questions
Are merchant processing fees the same as interchange?
No. Interchange is one part of your processing cost, paid to the customer’s issuing bank. Your total can also include card-network fees, processor markup and other charges such as monthly or gateway fees.
Which merchant processing fees can you negotiate?
You can negotiate your processor’s markup. Interchange is set by card networks and paid to issuing banks, while network assessments and other network fees are not processor markup. Review the pricing breakdown to see which charges are actually negotiable.
Why do processing fees add up on small transactions?
A fixed per-transaction charge takes the same amount from a small sale as from a larger one. If your business has many low-dollar transactions, those fixed charges can make up a larger share of the total processing cost.
What processing fees should you look for on a statement?
Look for interchange, assessments or network fees, processor markup, and authorization charges. Also review monthly, batch, gateway, PCI, chargeback and minimum-fee lines. Names and grouping vary, so compare the amount and how it is calculated.