Payment processor pricing is more complex than a single rate. This center explains how pricing models work, what fees appear on merchant statements, and how to calculate your true processing cost.
Quick Answer
Most merchants pay three cost layers: interchange (set by card networks, goes to the issuing bank), assessment fees (set by card networks, goes to Visa/Mastercard/etc.), and processor markup (what your payment processor charges). The pricing model determines how these costs are packaged and disclosed — which affects transparency, predictability, and your ability to audit your own statement.
The pricing model determines how your processor packages and discloses costs. Each model has different implications for transparency, predictability, and statement readability.
The most transparent pricing model — interchange costs passed through with a fixed processor markup disclosed separately.
A single fixed percentage per transaction regardless of card type. Simple and predictable but can cost more for some card mixes.
A monthly membership fee replaces per-transaction markup, giving merchants direct access to wholesale interchange rates.
Transactions sorted into qualified, mid-qualified, and non-qualified buckets with different rates for each tier. Least transparent model.
Two prices are displayed — one for cash and one for card. Implementation depends on applicable state law, card-network rules, disclosure requirements, and how prices are presented.
Offering a discount to customers who pay with cash, with the card price representing the standard price. Compliance rules apply.
Adding a fee to credit card transactions to recover processing costs. Regulated by card networks and restricted in some states.
Your merchant statement is the primary document for auditing processing costs. These guides explain what each line means and how to use your statement to understand your true effective rate.
A line-by-line guide to understanding what each section of your processing statement means.
The formula merchants use to measure their true all-in processing cost as a single comparable percentage.
A reference guide to the fees that appear on most merchant statements — what each one is and why it exists.
Fees that are technically disclosed but easy to miss — where to look and what questions to ask.
Interchange adjustments, card mix shifts, risk reviews, and other reasons your effective rate may change month to month.
Pricing terminology appears in contracts, statements, and processor quotes. These glossary entries explain the most common terms merchants encounter.
Use these tools alongside the pricing guides to apply what you've learned to your specific situation.
The four most common models are interchange-plus (transparent markup on top of pass-through interchange), flat-rate (fixed percentage regardless of card type), membership/subscription (monthly fee plus wholesale interchange), and tiered (qualified/mid-qualified/non-qualified buckets). Each model affects how costs are disclosed on your statement.
Your effective rate is total processing fees divided by total card volume, expressed as a percentage. It captures everything — interchange, assessments, and processor markup — in a single comparable number. It's useful for benchmarking costs across different processors and pricing structures.
Interchange is a fee set by card networks (Visa, Mastercard, etc.) that goes to the card-issuing bank. It's non-negotiable and varies by card type and how the transaction is processed. Processor markup is what your payment processor charges on top — this portion can sometimes be negotiated.
Interchange and assessment fees are set by card networks and are non-negotiable. Processor markup may be negotiable for merchants with higher volume or proven track records. Always get a written fee schedule and ask specifically about the markup component versus pass-through costs.
Dual pricing displays two prices: a cash price and a card price. Whether a particular program is permitted depends on applicable state law, card-network rules, and how prices are presented. The specific display requirements, disclosure language, and permitted surcharge amounts are set by card network operating rules — verify with your processor and legal counsel before implementing.
All content in the Pricing Knowledge Center is based on publicly available information from card network operating rules, processor documentation, regulatory guidance, and industry reference sources. ProcessorFit does not make pricing guarantees, savings promises, or approval commitments. Content is educational — verify directly with providers before making decisions.
Last reviewed: July 4, 2026