Short answer
US credit card processing fees are made up of interchange (paid to the card issuer), assessments (paid to the card networks) and the processor's markup, plus monthly fees such as statement, gateway and PCI charges. The pricing model decides how visible those parts are. Debit interchange for larger banks is capped by the Durbin Amendment, while credit interchange is not.
Part of Fees and rules by country. See the guides for every market we cover.
Key takeaways
- Fees are three layers: interchange to the issuer, assessments to the network and markup to your processor.
- Common pricing models are interchange plus, tiered, flat rate and subscription, each showing different amounts of detail.
- The Durbin cap limits debit interchange to 21 cents plus 0.05% for banks with over $10 billion in assets, while smaller banks are exempt.
- Monthly charges such as statement, batch, gateway and PCI fees can add noticeably to a small merchant's rate.
- Surcharging credit cards is allowed under network rules with limits, but some states ban it and debit surcharges are barred.
The United States is the biggest card market in the world and one of the hardest for a business owner to read. Pricing models multiply, the names of fees vary from processor to processor and a monthly statement can run to several pages. Underneath, though, the cost of taking a credit card payment in the US has a simple structure.
This guide sets that structure out, walks through the fees you will see on a statement, explains the rules that matter most (the Durbin debit cap, the card network settlement and surcharge limits) and gives you a checklist for reviewing your own bill. The examples use US dollars and are illustrative.
What are the three layers of a US card fee?
- InterchangePaid to the bank that issued the customer's card. Usually the largest part.
- AssessmentsPaid to the card network (Visa, Mastercard and others). A small percentage plus per-transaction fees.
- Processor markupKept by your processor or its reseller. The part you can negotiate.
The same three layers apply to every processor.
Interchange rates vary by card type, how the card was taken and the merchant category. Credit card interchange is not capped in the US. Debit card interchange is capped for larger issuers, as set out below. See interchange fees explained for the general picture.
Which pricing models will you meet in the US?
| Model | How it works | What you see |
|---|---|---|
| Interchange plus | Real interchange and assessments, plus a fixed markup | Many lines, each card category, a visible markup |
| Tiered | Qualified, mid-qualified and non-qualified rates set by the processor | Three or more rates, with a provider-decided classification |
| Flat rate | One percentage, sometimes plus a per-transaction fee | One or two lines |
| Subscription (membership) | A monthly fee and a low markup over interchange | Interchange lines plus a membership charge |
The first two are covered in our guides to interchange plus, blended and flat rate and tiered pricing. The right model depends on volume, average ticket and card mix.
Which fees are on a typical US statement?
A US statement may use more labels than a UK one. These are the lines to know.
| Fee | What it is | Typical form |
|---|---|---|
| Discount rate | The processor's percentage charge on sales | A percentage of volume |
| Per-item or transaction fee | A fixed charge on each payment | Cents per transaction |
| Interchange and assessments | Pass-through costs | Separate lines on interchange plus |
| Statement fee | A monthly charge for the statement | Fixed monthly amount |
| Batch fee | A charge each time a day's batch of transactions is settled | Fixed amount per batch |
| Gateway fee | Monthly or per-transaction charge for online or virtual terminal processing | Monthly plus per-transaction |
| PCI compliance fee | Monthly charge for the compliance programme | Fixed monthly amount |
| PCI non-compliance fee | A higher charge if you have not validated compliance | Fixed monthly amount |
| Monthly minimum | A floor on your monthly fees, topped up if you fall below it | Shortfall charge |
| Chargeback fee | A charge each time a payment is disputed | Per dispute |
| AVS or address verification fee | Per-check charge for address verification | Cents per check |
| Early termination fee | A charge for ending the contract early | Lump sum |
Our guides to PCI compliance fees, the minimum monthly service charge and refunds and chargebacks explain the ones that cause the most confusion.
A worked example in dollars
A US business processes $50,000 in credit and debit card sales in a month across 1,000 transactions, an average ticket of $50. Under interchange plus pricing, the bill might look like this. All figures are illustrative.
| Line | Calculation | Amount |
|---|---|---|
| Interchange | Average 1.60% of $50,000 | $800.00 |
| Network assessments | 0.14% of $50,000 + 2 cents × 1,000 | $90.00 |
| Processor markup | 0.20% of $50,000 + 8 cents × 1,000 | $180.00 |
| Statement fee | $10.00 | |
| PCI fee | $10.00 | |
| Gateway fee | $15.00 | |
| Total | $1,105.00 |
The effective rate is 1,105 ÷ 50,000 = 2.21%. Interchange makes up about 72% of the bill, assessments about 8%, the markup about 16% and fixed fees about 3%.
- Interchange
- Assessments
- Processor markup
- Monthly fixed fees
- Interchange $800 · Assessments $90 · Processor markup $180 · Monthly fixed fees $35
One month, $50,000 of card sales, interchange plus. Illustrative.
The processor's own share is the markup plus the fixed fees: $215.00, or 0.43% of volume. That is the part you can negotiate. Our guide to acquirer markup explains how to compare it between quotes.
How does the Durbin Amendment affect debit cards?
The Durbin Amendment limits the interchange that large banks can charge on debit card payments.
- The cap applies to issuers with more than $10 billion in assets. Smaller issuers are exempt.
- The cap is 21 cents plus 0.05% of the transaction, with an additional 1 cent allowed for issuers that meet fraud-prevention standards.
- Because the cap has a fixed part, it is a larger share of a small payment. On a $10 payment the cap works out to about 2.15% of the payment, while on a $100 payment it is about 0.26%.
Maximum for regulated issuers: 21 cents plus 0.05%, before the 1 cent fraud adjustment.
Debit cards from smaller banks and credit unions can carry higher interchange, because they are exempt from the cap. A proposal to lower the cap has been reported, but sources we reviewed disagree about its status, so check the Federal Reserve for the current position.
What is the Visa and Mastercard settlement?
In November 2025, Visa and Mastercard announced an amended settlement of long-running merchant litigation over interchange. As reported, it would, subject to court approval:
- Reduce interchange on most domestic credit transactions by 10 basis points for five years.
- Cap interchange on certain standard consumer cards at 1.25% for eight years.
- Allow merchants to surcharge at the brand level or the product level, up to a cap of 3% or the cost of acceptance, whichever is lower.
- Relax the "honor all cards" rule so that merchants could decline premium or commercial cards.
The approval process was still under way in the sources we reviewed, with preliminary approval of an amended version reported in mid-2026. Details can change, so check the current status before you make decisions that rely on it. The settlement matters because it could change both the cost of cards and a merchant's options for dealing with it.
How do surcharging and cash discounts work in the US?
Visa and Mastercard rules have allowed credit card surcharging under conditions, but debit card surcharges are barred by network rules. State laws add another layer. Connecticut, Maine, Massachusetts and Puerto Rico are commonly listed as banning credit card surcharges, and the position in Texas and California is contested. Cash discount and dual pricing programmes are generally treated differently from surcharges, though the rules vary. We cover the details in surcharging, cash discounts and dual pricing. This is general information, not legal advice.
How do you review a US statement?
- Find the pricing model. Interchange plus, tiered, flat rate or subscription?
- Find volume and transaction count. Calculate the average ticket.
- List every fee. Rates, per-item fees, monthly fees, annual fees.
- Find the downgrade or non-qualified lines, if tiered.
- Add everything up and calculate the effective rate. See effective rate explained.
- Check the markup by subtracting interchange and assessments from the total.
- Check the contract for term, auto-renewal, notice and early termination fee.
- Check for separate invoices, especially for terminal leases. See double contracts.
- Compare against a quote written on your own statement.
For consultants
US merchants hear a lot of promises about "lower rates". The most credible thing you can do is show them their own statement broken into interchange, assessments and markup, then show what the same month would cost under your offer. Be careful with any claim about the settlement or surcharging, since the rules are changing and vary by state. The checkmyrates calculator works in USD and shows the split between pass-through costs and the processor's share.
Frequently asked questions
What are typical credit card processing fees?
They have three layers: interchange to the card issuer, assessments to the card network and a markup to the processor, plus monthly fees. The total depends on your pricing model, volume, average ticket and card mix, so work out your own effective rate.
What is the Durbin Amendment?
It caps debit card interchange for banks with more than $10 billion in assets at 21 cents plus 0.05% of the transaction, with a 1 cent fraud adjustment. Smaller banks are exempt.
What is interchange plus pricing?
A model where you pay the real interchange and assessments for each payment plus a fixed markup. It is the most transparent model.
Can I add a surcharge to credit card payments in the US?
Often yes under card network rules, with notice requirements and a cap, but some states ban or restrict it and debit surcharges are barred. Check the law where you trade.
How do I lower my credit card processing fees?
Calculate your effective rate and markup, get written quotes against your own statement, check contract terms and ask for fixed fees to be removed. Compare on the all-in effective rate.
Is the Visa and Mastercard settlement final?
At the time of writing it was subject to court approval, with an amended version reported to have received preliminary approval. Check the current status before relying on it.
Sources and further reading
- Regulation of debit interchange fees (Congressional Research Service) (opens in a new tab)
- What the Visa and Mastercard legal settlement means (CNBC) (opens in a new tab)
- Credit card surcharge laws by state (LawPay) (opens in a new tab)
- Merchant statement analysis for agents (Honick) (opens in a new tab)
- Federal Reserve, Regulation II (Debit Card Interchange Fees) (opens in a new tab)
Figures in this guide are examples to show the method. Fees, rules and rates change, so check your own statement, contract and current rules before you decide. This is general information, not financial or legal advice.