MERCHANT FEE CALCULATOR
Estimate your monthly processing cost and effective rate under any pricing model, with every fee that appears on a merchant statement.
ESTIMATE YOUR COSTS
Choose how you are priced, enter your monthly card volume and average sale, then add the fees from your statement. Results update instantly.
THE SHORT ANSWER
Add every fee on your monthly statement, including processing percentages, per-transaction charges, monthly and PCI fees, gateway and batch fees, chargebacks, and equipment payments. Divide the total by your monthly card volume to get your effective rate, the clearest single measure of what card acceptance costs your business.
THE FORMULA
Effective rate = total monthly fees ÷ total card volume
Example: $650 in total fees on $25,000 of card sales is an effective rate of 2.60%. Two proposals can only be compared fairly when both are priced on the same volume, average sale, and card mix.
EVERY MERCHANT FEE, EXPLAINED
Statements use different names for similar charges. These are the fees businesses most often see, and how to keep each one in check.
Paid to the bank that issued the customer’s card. Rates are set by the card networks and vary by card type, how the card is accepted, and your industry.
Not negotiable, but chip and contactless acceptance and complete transaction data help you qualify for appropriate rates.
Charged by the card brands for using their networks. Usually a small percentage of volume plus various per-transaction network fees.
Ask that these be shown at cost, separately from the processor’s markup.
The processor’s own margin above interchange and network costs. In flat-rate and tiered pricing it is blended into one rate.
This is the main number to compare between proposals.
A fixed amount charged on each transaction, sometimes including declined or refunded transactions.
Matters most for low-ticket businesses with many small sales.
A recurring charge for maintaining the merchant account, sometimes called a customer service or support fee.
Ask what the fee includes and whether it can be waived.
A charge for producing your monthly statement, paper or electronic.
Often removable when you choose online statements.
Covers the provider’s tools for validating your compliance with card industry data security standards.
Ask whether it includes scanning and questionnaire support.
An extra charge applied when your annual PCI validation is not completed.
Avoidable entirely by completing your self-assessment on time.
Charged for the service that connects your website, app, or virtual terminal to the processor.
Close gateways you no longer use.
Charged each time you close and submit a day’s transactions for settlement.
Multiply by the number of days you batch each month.
Charged when a customer disputes a payment, regardless of the outcome in many agreements.
Clear descriptors, policies, and records reduce disputes.
Charged when the card issuer requests documentation about a transaction before a possible dispute.
Respond quickly to avoid a request becoming a chargeback.
A once-a-year account charge, sometimes labeled as a membership or regulatory fee.
Spread it across twelve months to compare fairly.
If your processing fees fall below a set amount, the difference is charged as a minimum fee.
Important for seasonal or low-volume businesses.
Payments for terminals or POS hardware under a lease, rental, or financing agreement.
Compare the total of payments with the purchase price; many leases are non-cancellable.
Charged if you close the account before the contract term ends.
Check term length and auto-renewal before signing.
Small fees for address checks on card-not-present sales or for authorizing a payment by phone.
Common for online and phone-order businesses.
Extra network and processor charges on cards issued outside the US or on currency conversion.
Relevant if many customers use foreign-issued cards.
PRICING MODELS
| Model | How it works | Strength | Watch for |
|---|---|---|---|
| Flat rate | One blended percentage and per-transaction fee | Simple and predictable | Often costlier as volume grows |
| Interchange-plus | Interchange at cost plus a disclosed markup | Transparent; easy to compare | Monthly cost varies with card mix |
| Tiered | Qualified, mid-qualified, and non-qualified rates | Looks simple on paper | Provider decides the tier; hard to predict |
| Subscription | Interchange at cost plus a monthly fee and small per-item fee | Low markup at higher volume | Subscription cost at low volume |
| Cash discount / surcharge | Card costs offset by a disclosed customer fee or cash discount | Can reduce net processing cost | Card brand rules, state law, and customer experience |
READ YOUR STATEMENT
Look for total sales or net volume processed for the month.
Include processing, per-item, monthly, PCI, gateway, batch, chargeback, and equipment charges.
Divide total fees by total volume. This is your all-in cost per dollar processed.
On interchange-plus statements, interchange and network fees are passed through; the rest is negotiable.
Enter each proposal into the calculator with the same volume and average sale.
FREQUENTLY ASKED
It is as accurate as the numbers you enter. The calculator applies the rates and fees you provide to your monthly volume and average sale. Actual interchange varies by card type and how cards are accepted, so use it for comparison, not as a quote.
It depends on your industry, average sale, card mix, and whether payments are in person or online. In-person businesses with many debit cards usually see lower effective rates than online or keyed businesses. Compare your rate with proposals priced on your own data.
Interchange is paid to the card-issuing bank and set by the card networks. The markup is the processor’s own margin. Only the markup and service fees are typically negotiable.
Quoted rates often exclude per-transaction fees, monthly fees, PCI fees, non-qualified surcharges, and equipment costs. The effective rate includes everything.
They are permitted in many cases but governed by card brand rules and state laws, including disclosure requirements and caps. Confirm compliance with your provider and advisor before adopting one.
Yes. Request a quote and we will walk through your statement, explain each fee, and compare written proposals from suitable providers.