Credit Card Processing Fees Explained

A card processing quote can show one percentage, a few per-transaction amounts, and a monthly fee. This page explains what sits underneath, using Visa’s published interchange tables and the Federal Reserve’s debit rule, both read on 2026-10-16. It is general information, not financial advice, and it is a reading guide rather than a price list: the amounts here are paid between banks, not by you.

Interchange and the merchant discount

Visa’s rate document says interchange reimbursement fees are transfer fees between financial institutions, used to balance and grow the payment system. It then draws a distinction that matters for reading a quote: merchants do not pay interchange reimbursement fees; merchants pay a “merchant discount” to their financial institution. Visa says merchants buy a variety of processing services from financial institutions, all of which may be included in the merchant discount rate, which is typically a percentage per transaction.

So interchange is one input into what your provider charges, not the whole price. How the provider adds to it is the difference between flat-rate and interchange-plus pricing; see interchange-plus vs flat rate for that comparison.

What decides the interchange rate

Visa’s tables are organized by card type and by how the card was accepted. In the April 18, 2026 document, there are separate tables for consumer debit cards (exempt and regulated), prepaid cards, consumer credit cards and business cards, each with card-present and card-not-present sections. Within them, rates change with the transaction type, such as supermarket, retail, restaurant, small ticket, fuel, key-entered, recurring billing, travel, education and others.

Examples of what the consumer credit table lists (rates paid to the card issuer, not what you are charged):

• Card present, retail credit: rows range from 1.43% + $0.10 to 2.30% + $0.10, depending on the product and whether it qualifies for a given tier.
• Card present, supermarket credit: from 1.18% + $0.05 to 2.00% + $0.07.
• Card not present, “Product” row: from 1.89% + $0.10 to 2.60% + $0.10.
• Card not present, restaurant: 2.20% to 2.70% with a $0.08 minimum.

Because a rewards card, a business card or a key-entered sale can land on a higher row than a plain debit card, two sales of the same amount can cost different amounts to accept. That is why published flat rates are averages across the mix, and why an interchange-plus quote can move with the cards your customers use.

Debit: regulated and exempt

Visa splits consumer debit into “exempt” and “regulated” cards. The Federal Reserve explains the source of the split: Regulation II sets standards for whether a debit interchange fee is reasonable and proportional to the issuer’s costs, allows a fraud-prevention adjustment, and exempts certain small debit card issuers, government-administered payment programs and reloadable general-use prepaid cards from the limits.

In Visa’s April 2026 debit tables, the regulated column lists 0.05% + $0.21 for card-present and card-not-present transactions, with a note that issuers who certify compliance with Visa’s interim fraud-prevention standards receive an additional $0.01. The exempt column varies by transaction type; for example, retail debit card-present is 0.80% + $0.15, restaurant card-present is 1.19% + $0.10, and key-entered retail debit is 1.65% + $0.15.

The Federal Reserve also says Regulation II prohibits issuers and networks from restricting debit transactions to fewer than two unaffiliated networks, and from inhibiting a merchant’s ability to direct the routing of a debit transaction over any network the issuer has enabled. Whether your processor lets you use that choice is something to ask.

A worked example: a $50 debit sale

Using Visa’s published rates (not a quote):

• Regulated debit, card present: 0.05% of $50 is $0.025, plus $0.21, so about $0.24 in interchange.
• Exempt debit, retail, card present: 0.80% of $50 is $0.40, plus $0.15, so $0.55 in interchange.

The merchant discount your provider charges is a separate number that includes whatever the provider adds. Compare quotes on total cost with our processing fee calculator.

Other charges on a statement

A statement can also show network or processor charges beyond interchange, such as per-transaction fees, monthly fees and fees for chargebacks. We did not find a published source that we could cite for typical network assessment or markup amounts, so this page gives none. Ask your provider for an itemized list. For dispute fees by provider, see our chargeback fees guide. If you plan to pass the cost to customers, read about surcharge rules by state first.

What we did not verify, and limits of this page

• Visa’s document says that if its content conflicts with the Visa Core Rules and Visa Product and Service Rules, those rules govern.
• Visa tells merchants with questions about interchange rates or the rates they are eligible for to contact their financial institution.
• We did not use Mastercard, American Express or Discover figures.