Who this is for
Retailers and restaurants choosing or replacing a POS, e-commerce businesses setting up online payments, or any business that suspects it's overpaying on card processing fees.
What to look for in a provider
- Pricing model. Interchange-plus (transparent, usually cheapest) vs. flat-rate (simple, predictable) vs. tiered (often the most expensive and opaque). Prefer interchange-plus once volume grows.
- Effective rate. The true all-in percentage you pay; the number that actually matters.
- Hardware and POS. Terminals, tablets, or full point-of-sale; ownership vs. lease.
- Payout speed. Next-day funding vs. standard 2–3 days.
- Contract and termination. Avoid long lock-ins and early-termination fees.
- Integrations. With accounting, e-commerce, and inventory.
Frequently asked questions
How much are credit card processing fees for businesses?
Effective rates typically land between 2.3% and 3.5% per transaction, depending on card type, business category, and pricing model. Interchange-plus pricing (interchange cost + a fixed markup) is usually the most transparent and cost-effective at scale, while flat-rate (e.g., 2.9% + 30¢) is simplest for lower volumes.
What is interchange-plus pricing?
Interchange-plus separates the non-negotiable interchange fee set by card networks from the processor's markup, showing both. Because the markup is fixed and visible, it's usually cheaper and more honest than tiered pricing, where processors bucket transactions into vague "qualified/non-qualified" tiers with hidden margins. For growing businesses, interchange-plus almost always wins.
Can I negotiate lower payment processing fees?
Often yes, especially as volume grows. Interchange itself is fixed, but the processor's markup is negotiable, and switching processors is a legitimate lever. Many businesses overpay simply because they've never re-shopped since signing up. A rate review frequently uncovers meaningful savings.
What's the difference between a payment processor and a POS system?
A payment processor moves the money and charges the fees. A POS (point-of-sale) system is the software and hardware you use to ring up sales, track inventory, and manage staff, it connects to a processor. Some providers bundle both; others let you pair a POS with the processor of your choice.
How fast can I get paid from card sales?
Standard funding is 2–3 business days. Many processors offer next-day or even same-day funding, sometimes for a small fee. For cash-flow-sensitive businesses like restaurants, faster funding can be worth the cost.
Are there payment options with no long-term contract?
Yes. Many modern processors operate month-to-month with no early-termination fees. Avoid multi-year contracts with steep cancellation penalties unless the rate is genuinely exceptional and guaranteed for the term.
Why is my effective rate higher than the rate I was quoted?
Quoted rates often cover only the cheapest card types. Rewards cards, business cards, and keyed-in transactions cost more, and tiered pricing pushes many transactions into higher buckets. Your effective rate. Total fees ÷ total volume. Is the honest number to compare across providers.
How we help
Tell us your monthly card volume, whether you need a POS, and what you're paying now. We shortlist processors and POS providers that fit and introduce you directly, free to your business.
When you sign up, the provider pays us. That keeps it free for you and keeps our recommendations honest.