The processing rate you see in a merchant services pitch is not the full picture. Payment processing fees have multiple layers, and the headline rate only covers some of them. This guide explains every fee category, what it is, what it typically costs, whether it’s negotiable, and who receives it, so you can evaluate processor pricing clearly.
Fee Layer 1: Interchange (Non-Negotiable)
Interchange is the fee paid to the issuing bank, the bank that issued your customer’s card, on every transaction. It’s set by Visa and Mastercard and is non-negotiable regardless of your processor. Common interchange categories:
| Card Type | Typical Interchange Range |
|---|---|
| Consumer debit (online) | 0.05% + $0.21 (regulated) to 0.80% + $0.15 |
| Consumer credit (standard) | 1.51% + $0.10 to 1.80% + $0.10 |
| Consumer credit (rewards) | 2.10% + $0.10 to 2.50% + $0.10 |
| Corporate/business cards | 2.40% + $0.10 to 2.95% + $0.10 |
Interchange varies by card type, card network, merchant category code (MCC), transaction type (card-present vs. card-not-present), and authentication method. There are hundreds of interchange categories across Visa and Mastercard tables.
Fee Layer 2: Network Assessment Fees (Non-Negotiable)
Card networks charge assessment fees for every transaction processed on their network. These are also set by the card networks and non-negotiable. Typical ranges: Visa charges 0.13% + $0.002/transaction; Mastercard charges 0.13% on transactions under $1,000. Small in absolute terms but meaningful at volume.
Fee Layer 3: Processor Markup (The Part That Varies)
Everything above interchange and network fees is your processor’s markup. This is where providers differentiate on price. On flat-rate pricing, interchange + assessment + markup are bundled into a single rate. On interchange-plus pricing, interchange and assessment are passed through at cost and the markup is listed separately.
Ancillary Fees to Watch For
| Fee Type | What It Is | Typical Amount | Negotiable? |
|---|---|---|---|
| Monthly platform fee | Access fee charged regardless of volume | $10–$50/month | Often eliminable |
| PCI compliance fee | Annual or monthly fee for PCI support | $99–$299/year | Often eliminable |
| Chargeback fee | Per-dispute fee, win or lose | $15–$50 | Rarely negotiable |
| Monthly minimum | Minimum processing fee if volume is low | $25–$100/month | Negotiable at volume |
| Early termination fee | Fee for leaving before contract end | $200–$500 | Negotiable (seek month-to-month) |
| Batch/statement fee | Per-batch or monthly statement fee | $5–$25/month | Often hidden in contracts |
| IRS reporting fee | Fee for required annual 1099-K filing | $5–$15/year | Rarely |
How Flat-Rate Pricing Works
Flat-rate pricing bundles interchange, network fees, and processor markup into a single predictable rate. You pay the same percentage regardless of what card your customer uses, rewards cards, corporate cards, and standard cards all charge the same rate. This predictability comes at a cost: when your customers predominantly use low-interchange cards (debit, standard consumer credit), flat-rate pricing may cost slightly more than the pass-through alternative.
For most WooCommerce merchants, the simplicity and predictability of flat-rate pricin, especially without the ancillary fees listed above, represents the best value. ConvesioPay’s pricing: 2.9% + $0.30 per transaction, no monthly fees, no PCI fee, no early termination. What you see is what you pay.
Ready to get started? Learn more about ConvesioPay or view pricing.