Quick answer:
Payment processing typically costs a small percentage of each transaction plus a flat per-transaction fee, layered on top of card-network interchange. Your effective rate — total fees divided by total volume — depends on your industry, your card mix, and your pricing model (interchange-plus, flat-rate, or tiered). High-risk and card-not-present transactions generally cost more.
What are you actually paying for?
Every card payment bundles three things. Interchange is set by Visa, Mastercard, and the other networks and paid to the bank that issued your customer’s card — no processor controls it. Assessments are the networks’ own fees. The processor’s margin is what your provider charges to move the money, handle settlement, provide support, and carry risk. When you compare quotes, you’re really only comparing that third piece — interchange and assessments are the same no matter who you sign with.
The three common pricing models
- Interchange-plus. You pay actual interchange plus a fixed, disclosed markup. This is the most transparent model because you can see exactly what’s pass-through and what’s the processor’s cut.
- Flat-rate. One blended percentage (sometimes plus a per-transaction fee) on every sale. Simple and predictable, which is why it’s popular with newer or low-volume businesses — but you can’t see the underlying interchange.
- Tiered. Transactions are sorted into “qualified,” “mid-qualified,” and “non-qualified” buckets at different rates. This is the hardest model to compare because the processor decides which transactions land in which tier.
What raises your rate?
- Card-not-present transactions. E-commerce and keyed-in sales carry more fraud risk than swipe/chip, so they cost more.
- Rewards and corporate cards. They carry higher interchange, which flows through to you.
- High-risk industries. Verticals like CBD, credit repair, and nutraceuticals generally see higher effective rates reflecting their risk profile.
- Smaller average tickets. Per-transaction fees take a bigger bite out of small sales.
What other fees should you watch for?
Beyond the per-transaction cost, ask about monthly account fees, gateway fees (for online processing), PCI compliance fees, statement fees, and any early-termination or batch fees. The headline rate is only part of the picture — always ask for a complete fee schedule in writing.
How do you compare providers fairly?
Compute your effective rate: take a real monthly statement, divide total fees by total card volume, and you get one apples-to-apples number. Comparing headline percentages alone is misleading because they ignore monthly fees, add-ons, and how your specific card mix lands.
How TouchSuite fits
TouchSuite provides payment processing for both traditional and high-risk businesses, and pairs it with integrated POS, kiosks, and working-capital options — so you can talk through pricing in the context of your actual industry and card mix rather than a one-size-fits-all rate sheet.
For a tailored quote you can reach the team at (866) 353-2239 or [email protected].
FAQs
It depends on card mix and industry — compare effective rate (total fees ÷ total volume), not headline rates
Often, plus possible gateway, PCI, or statement fees — ask for a full schedule.
Typically yes, reflecting the added risk the provider underwrites.
Neither is universally cheaper — flat-rate is simpler and predictable; interchange-plus is more transparent and can be cheaper at higher volume.
Encouraging card-present transactions, reducing chargebacks, and choosing the right pricing model for your volume all help.