Research
Credit card processing by the numbers
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Card payments drive most retail revenue and cost small businesses 1.5% to 3.5% per sale.
What percentage do small businesses pay for credit card processing?
Small businesses pay between 1.5% and 3.5% per transaction, JIM, and retailers average 2.3%, Small Business Payments Alliance. The statistics below, each linked to its published source, show why the rate on every transaction matters.
The statistics, with sources
| Figure | What it measures | Source |
|---|---|---|
| $6.5 trillion | Credit card purchase volume in 2024, with industry estimates that nearly three-quarters of nationwide retail sales come from credit card transactions. | Small Business Payments Alliance, Generating Value: The Benefits of Accepting Credit Cards |
| 608 million | Open general purpose card accounts at year-end 2024, a 35% increase since 2018. | Small Business Payments Alliance, Generating Value: The Benefits of Accepting Credit Cards |
| 40% | Share of global ecommerce paid with credit cards. | Stripe, A Guide to Credit Card Processing for Small Businesses |
| 2.3% | Average retailers pay on each credit card transaction to issuers, networks and acquirers. | Small Business Payments Alliance, Generating Value: The Benefits of Accepting Credit Cards |
| 1.5% to 3.5% | What small businesses pay per transaction, depending on card type, industry and how the card is accepted. | JIM, Best credit card processing: a small business guide for 2026 |
| $10,000 | Monthly volume above which interchange-plus pricing typically offers lower rates. | U.S. Chamber of Commerce CO, Best Credit Card Processors for Small Businesses |
| $50,000 | Roughly the monthly volume above which interchange-plus usually wins on total cost over flat-rate. | JIM, Best credit card processing: a small business guide for 2026 |
| $250,000 | Annual volume below which some providers do not negotiate rates for small businesses. | U.S. Chamber of Commerce CO, A Quick Guide to Credit Card Processing |
| 41% | U.S. small businesses that experienced a cyberattack in 2023. | Stripe, A Guide to Credit Card Processing for Small Businesses |
| $4 to $20 | Bank of America estimate of what a single business check costs to write, mail, collect and reconcile. | Small Business Payments Alliance, Generating Value: The Benefits of Accepting Credit Cards |
What the numbers mean for an online store
Cards are the revenue. With credit cards at 40% of global ecommerce and nearly three-quarters of U.S. retail sales, card processing cost applies to most of what an online store earns.
The rate range is wide. The gap between 1.5% and 3.5% is two full percentage points. On $1,000,000 in card sales, that is $20,000 a year. Where a store lands in that range depends heavily on which processor handles each sale.
Volume changes the right answer. Above $10,000 to $50,000 a month, flat-rate pricing stops being the cheapest model. Seven-figure stores are far past that line.
Security is not optional. With 41% of small businesses hit by cyberattacks in 2023, payment partners must meet card industry standards.
Put your own numbers in the processing cost calculator or go back to the credit card payment processing overview.
Common questions
How much does it cost a small business to process credit cards?
A small business typically pays 1.5% to 3.5% of each card sale in processing fees, per the 2026 guide from JIM. The Small Business Payments Alliance reports that retailers pay an average of 2.3% per credit card transaction. On $1,000,000 in annual card sales, every 0.1 percentage point equals $1,000 a year, which is why rate differences matter at seven-figure volume.
At what monthly volume should I move off flat-rate processing?
Many merchants should look beyond flat-rate pricing once card volume passes about $10,000 to $50,000 a month. The U.S. Chamber CO guide points to $10,000 monthly as where interchange-plus starts offering lower rates, and the JIM 2026 guide puts the crossover near $50,000. A seven-figure store averages more than $83,000 a month, well past both.
What is interchange-plus pricing?
Interchange-plus pricing passes through the card network interchange cost and adds a set markup, instead of charging one flat percentage. The U.S. Chamber of Commerce CO guide says interchange-plus typically offers lower rates to companies processing more than $10,000 monthly, and JIM says it usually wins on total cost above roughly $50,000 a month. Seven-figure stores sit above both thresholds.
Do small businesses get negotiated processing rates?
Often not: some providers do not negotiate rates for small businesses processing under $250,000 in card sales a year, according to the U.S. Chamber of Commerce CO guide. Seven-figure stores are past that line, yet many still pay flat rates. Avendo takes a different approach, letting multiple processors compete on every transaction instead of relying on one negotiation.
How common are cyberattacks on small businesses?
Cyberattacks on small businesses are common: 41% of U.S. small businesses experienced one in 2023, according to the Stripe small business processing guide. That is a key reason to choose payment partners that meet card industry security standards. Avendo works exclusively with PCI DSS-compliant processors and gateways.
Route every sale to the best available rate
Keep your checkout. Avendo connects it to multiple PCI DSS-compliant processors and does not bill merchants directly.