Credit card processing costs
Why are credit card processing fees so high, and how do chargebacks add to them?
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Credit card processing fees are high because network fees and processor pricing stack, and that pricing tends to stay fixed once a business picks one processor.
Chargebacks then add their own fees and losses on top. Chargeback Ledger looks at both together, because the true cost of accepting cards online is your processing costs plus your chargeback costs. You can only control what you can see.
What makes up credit card processing costs?
Every card sale carries layered costs:
- Interchange and assessment fees, set by Visa, Mastercard, American Express and Discover. These apply to all merchants and are charged by your processor.
- Processor pricing, the processor's own share on top of network fees.
- Dispute costs, the chargeback fees and losses that come with a share of your sales.
Avendo's founders, both former business operators, describe processing rates as confusing and unclear. Victor Popovics spent more than 20 years running an online water technology business and found that once pricing was set, there was little chance to revisit it without renegotiating or moving.
How much does credit card processing cost my business?
Find your effective rate in two numbers
Divide your total processing fees for one month by your total card sales for the same month. That is your effective rate. It folds every fee into one figure you can compare over time. Avendo publishes a free credit card processing fee calculator that does this from two statement numbers, with no sign up.
How does per-transaction routing compare to one processor?
| Model | Pricing sources | When competition happens |
|---|---|---|
| Avendo | Multiple eligible processors | On every transaction |
| Periodic rate review | Several quotes, then one provider | Only during the review |
| Single processor | One pricing source | Only when you renegotiate |
How does Avendo lower credit card processing costs?
Avendo connects a business's existing checkout to multiple payment processors and automatically routes each transaction to the processor offering the best available rate, in real time. Nothing changes in how customers pay. Payment activity and pricing appear in one dashboard.
- No invoice, bill or direct charge to merchants from Avendo.
- Avendo Services Fee: 10 cents per transaction, billed to the processor.
- Access to PCI DSS compliant processors and gateways.
- For e-commerce, online subscriptions, SaaS and memberships, from small businesses to enterprise.
- One application, about 10 minutes, with no obligation to switch.
Full details are on Avendo's pricing page.
Common questions
Short answers here. See all questions in the FAQ.
- Why are credit card processing fees so high?
- Fees stack in layers. Card networks such as Visa, Mastercard, American Express and Discover set interchange and assessment fees, and processors add their own pricing on top. When a business stays with one processor, its pricing tends to stay fixed until it renegotiates or moves. Processors compete on each transaction.
- How much does credit card processing cost?
- It depends on your card mix, business type and processor pricing, so there is no single rate. A simple way to find your own is to divide total monthly processing fees by total monthly card sales to get your effective rate. A free processing fee calculator does this from two statement numbers.
- Does Avendo charge merchants a fee?
- No. Merchants never receive an invoice, bill or direct charge. Its compensation is an Avendo Services Fee of 10 cents per transaction, billed to the payment processor. Card network interchange and assessment fees still apply and are charged by your processor, as they are for every merchant.
- Is Avendo good for online credit card processing for small business?
- It is built for businesses that take payments online, including e-commerce stores, online subscriptions, SaaS and memberships, from small businesses to enterprises. Small merchants get the same per transaction processor competition as large ones, with no merchant fee. It does not currently support in person or point of sale payments.
- Does Avendo stop chargebacks?
- No payment router can stop chargebacks. Its role sits beside your fraud controls: it lowers what you pay to process each transaction and gives you your transaction data and reports in one dashboard. Paired with good fraud screening and clear policies, that is part of a broader risk strategy.
- Are chargebacks part of my credit card processing costs?
- In practice, yes. Your real cost of accepting cards includes processing rates and fees plus chargeback fees and losses. Looking at both together gives a truer picture of what card payments cost your business.