The merchant’s cost guide

Credit card processing fees. Compare the whole bill.

A percentage is only the beginning. Put each provider’s processing, transaction, software and equipment costs on the same footing before deciding who costs less.

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By Payment USASources checked September 16, 2026U.S. merchant pricing

Payment USA publishes this commercial comparison. We link to each provider’s own sources and explain where another option may fit better. Published rates can change; your written agreement controls.

01 / Understand the offer

Four pricing models. One total cost.

A pricing model tells you how charges are assembled. It does not tell you whether the final bill is right for your business.

Predictable by channel

Flat-rate

The provider bundles processing into a stated rate for a payment category. A percentage plus a fixed amount per transaction is common; online and keyed payments may have different rates.

Ask: which plan and channel the advertised price covers, whether international cards cost more, and which software is included. Simplicity can have real operational value.

Multiple rate buckets

Tiered pricing

Transactions enter categories such as qualified, mid-qualified or non-qualified. The headline rate describes one category rather than the cost of all your sales.

Ask: for the qualification rules, every tier’s rate and a projection using your actual transaction mix. Compare the blended result rather than the lowest bucket.

Fixed plus variable

Subscription pricing

A recurring subscription is combined with underlying payment costs and often a per-transaction charge. The fixed portion can become more significant in slower months.

Ask: what the subscription includes, whether different sales methods cost more, and how the model behaves at both your busiest and quietest volume.

From Payment USA's merchant experience

AutoTech: from a quoted markup to a clear total.

AutoTech, an automotive business, believed it was paying 0.5% for processing. When Payment USA analyzed its statement, its actual effective rate was 3.25%. The 0.5% was the processor markup above underlying card costs. Payment USA subsequently reduced the account's effective rate to 2.8%.

Understand the comparison

3.25% → 2.8% effective.

The reduction is 0.45 percentage points. Both percentages describe the account's effective processing cost. Neither is a universal interchange rate or a Payment USA quote for another merchant.

Swipe across to see the calculation.

ComparisonCalculation at the same volumeEstimated monthly amount
Before Payment USA$75,000 × 3.25%$2,437.50
With Payment USA$75,000 × 2.8%$2,100.00
Difference$2,437.50 − $2,100.00$337.50

Source: Payment USA's account of its work with AutoTech, supplied September 2026. Monthly volume is approximate. Dollar amounts are calculated from the reported effective rates and volume, not reproduced invoice totals. The $4,050 annual figure is a projection ($337.50 × 12), not a verified twelve-month result. Changes in sales, card mix or additional costs can change the outcome.

Clarity is part of the service.

We explain which costs come from the card networks, which are processor charges, and what sits outside the quoted markup. That includes checking separate Amex bills and clarifying whether “discount” charges are deducted daily or collected monthly. Our statement-review notes explain these common sources of confusion.

Payment USA never charges a cancellation fee on any account we offer. We want merchants to understand their costs and choose to stay because the service works for them.

02 / Read rate sheets correctly

Published prices are starting points.

U.S. examples checked September 16, 2026. Rows are labeled by channel and plan. A processor’s markup is not the same thing as an all-in processing rate.

Swipe across to read scope and exclusions.

Provider / scopePublished priceWhat to add or confirm
Square Free
In person
2.6% + 15¢
$0 monthly plan fee
Hardware, optional services and applicable supplements. Legacy or custom agreements can differ.
Square Free
Online / invoices
3.3% + 30¢Online API is a separate category at 2.9% + 30¢. Plus/Premium plan fees and rates differ.
Helcim
In person, lowest volume tier
Interchange + 0.40% + 8¢Applicable underlying interchange/network costs are additional. Volume tiers and optional service fees affect the total.
Helcim
Keyed / online, lowest volume tier
Interchange + 0.50% + 25¢Underlying costs are additional. Recurring payments carry a published additional 0.4% fee.
Stripe Standard
Domestic online cards
2.9% + 30¢Other products and international/currency-conversion charges can add costs. Custom pricing is available.
Payment USA
Merchant processing
Written quoteAsk for applicable markup, underlying costs, equipment, software and any additional fees for your actual business.

Primary sources: Square fees, Helcim markup tiers, Helcim additional fees, and Stripe pricing. Helcim applies volume tiers using a trailing three-month average; this table does not reproduce every tier.

Don’t compare 0.40% with 2.6% as though they are equivalent rates. The former is a processor markup that sits on top of underlying costs. The latter is a bundled rate for a particular plan/channel. Convert both offers to dollars for the same transactions.

03 / Put both offers in dollars

A worked comparison that can go either way.

Assume $10,000 in domestic in-person sales and 200 transactions. Use Square Free’s published rate and Helcim’s lowest-volume in-person markup. Underlying costs below are teaching assumptions, not a prediction about your cards.

Published bundled rate

Square Free

$290

Illustrative monthly processing charges.

$10,000 × 2.6% = $260
200 × $0.15 = $30
Total: $290 / 2.90% effective

The calculation uses the stated plan/channel rate. It excludes optional software, hardware and other adjustments.

Change the card mix and the answer can reverse. If underlying costs are $250 instead, Helcim’s illustrated total becomes $306—$16 higher than the $290 Square example. The published markup did not change; the underlying costs did.

Examples exclude hardware, foreign-card supplements, refunds, disputes, optional products and custom pricing. They assume Helcim’s lowest volume tier applies. Use your written Payment USA quote for a merchant-specific comparison.

Then add the costs outside processing.

If a replacement requires a separate $40 monthly software subscription, add it before deciding. If an annual $99 charge applies, include it once in the annual projection. A $34 monthly processing advantage would not cover $40 of new monthly software.

For flat-rate calculations, start with sales × percentage + transactions × per-item fee. For interchange-plus, start with matched underlying costs + percentage markup + per-item markup. Add the relevant fixed and additional charges to each side. The effective-rate calculator helps establish your baseline; its illustrative comparison settings are not a merchant quote.

04 / Compare the complete cost

Make every proposal answer the same questions.

Every payment

Variable charges

  • Card-present, online and keyed rates.
  • Per-transaction and authorization charges.
  • Applicable interchange and assessments.
  • Recurring, international and conversion charges.
  • Refund, dispute and ACH-return treatment.
Every period

Fixed charges

  • Account, gateway and software subscriptions.
  • Each location, register or user charge.
  • Equipment purchase or lease terms.
  • Monthly minimums and PCI-related charges.
  • Annual fees counted once per year.
Every transition

Switching costs

  • Setup and installation.
  • Hardware and integration compatibility.
  • Data or subscription migration.
  • Staff training and reconciliation.
  • Existing cancellation or lease obligations.

Keep Amex and statement periods aligned.

Fees divided by sales is meaningful only when both cover the same transactions and period. If Amex sales appear on your processor statement while Amex bills its fees separately, including that volume without those fees understates the combined cost. Review Visa/Mastercard/Discover separately, then use the matching Amex statement to complete its comparison.

Do not treat deposits as gross sales: refunds, fees and settlement timing can change the cash received. Show the chosen sales basis consistently. Our Amex guide and statement guide explain the documents to collect.

Cash discount is a different comparison.

Interchange-plus changes how the merchant’s processing costs are priced. Cash-discount and dual-pricing programs change how cash/card prices are presented and costs are covered. Compare the merchant expense, customer experience, payment-method treatment and program terms together. The absence of merchant credit-card fees does not, by itself, establish that software or equipment is free. Read what zero-cost processing means.

05 / Research your actual provider

Go beyond the rate table.

These existing guides help you identify the provider and questions to ask. Confirm any dated rate or contract detail against a current written proposal.

06 / Common comparison questions

The details that change the decision.

Which processor has the lowest credit card processing fees?
There is no provider that is cheapest for every merchant. Compare written proposals using the same sales, transaction count, card mix and payment channels. Include the software you need and the cost of changing systems. An attractive processing rate can be offset by fixed fees, while a paid plan can provide software you would otherwise buy separately.
Is interchange-plus always cheaper than flat-rate?
No. Interchange-plus makes the markup easier to identify, but its total still includes underlying card costs and any extra charges. Flat-rate can cost less for a particular mix or avoid fixed charges in a slow month. The worked example above shows how a different underlying card cost can reverse the result.
What does a qualified processing rate mean?
A qualified rate is one category in a tiered offer. Ask which transactions qualify, how other transactions are priced, and what proportion of your own volume is likely to enter each category. Do not apply the lowest tier to every sale when estimating the bill.
How should I compare an annual fee?
Count it once in a yearly forecast. For example, $500 in recurring monthly charges plus a $99 annual fee equals $6,099 per year. The fee still appears in full on the statement where it is charged; dividing it by 12 is a budgeting convention, not a change to that statement.
Why can a merchant statement show a misleadingly low effective rate?
The fees and sales may cover different sets of transactions. For example, a processor statement can include Amex volume while Amex bills its main fees separately. Do not divide only Visa/Mastercard/Discover fees by sales that also include separately billed Amex. Use matching statements, periods and card groups.
Does Payment USA offer every merchant a 2.65% rate?
No. The analyzer’s 2.65% figure is an illustrative comparison benchmark, not the card networks’ interchange rate and not a personalized merchant quote. Actual offered pricing requires a written proposal for your business. Keep that benchmark separate from published provider rate sheets.

Check the details

Sources & methodology.

Provider facts were checked against the sources below on September 16, 2026. Examples identify their inputs and exclusions. A published rate, a hypothetical model and a personalized merchant quote are different things.

Spot something outdated? Email us and we’ll check it.

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