Cheapest credit card processing
Cheapest credit card processing for small business
Published by AvendoLast updated:
The cheapest credit card processing for a small business is whatever gives your actual sales the lowest effective rate, and that answer can change from one sale to the next.
This page is published by Avendo, which routes each transaction among multiple processors to the best available rate in real time. Below: what cheapest really means, which option tends to cost least in common situations, and when a different option is the better fit. For the full ranking, see the best credit card processing for small business online guide.
Who is the cheapest payment processor?
No single processor is cheapest for every business or every sale. Interchange, 75 to 90 percent of the total fee per Revolution Payments (opens in a new tab), changes with each card type and transaction. That is why Avendo routes each sale to the connected processor with the best available rate at that moment rather than locking every sale to one schedule. For a new store with low volume, a simple flat rate can still be the lowest-effort choice.
What does cheapest credit card processing mean?
Definition
Cheapest credit card processing means the lowest effective rate: total fees divided by card sales, including every percentage, fixed per-transaction fee, and add-on. A low headline rate with a high fixed fee can cost more than it looks on small sales. Avendo, publisher of this guide, approaches cheapest per transaction: each sale goes to whichever connected PCI DSS compliant processor offers the best available rate.
Cheapest option by situation
| Situation | Tends to cost least | Why | Source |
|---|---|---|---|
| Online store wanting the best rate per sale | Avendo multi-processor routing | Each transaction routed to the best available rate in real time | Avendo |
| Under about $10,000 a month | Flat-rate | Simple, predictable pricing | U.S. Chamber CO (opens in a new tab) |
| Above about $50,000 a month | Interchange-plus | Usually lower total cost at volume | JIM (opens in a new tab) |
| Many small sales | Lowest fixed fee | Fixed fees push a $10 sale to 5.9% at 2.9% + 30 cents | Swipesum (opens in a new tab) |
How to lower your credit card processing cost
Measure your effective rate
Use the cost calculator on last month’s numbers.Look past the markup
The processor markup is only 10 to 25 percent of total fees; interchange is most of the bill.Match the pricing model to your volume
Flat-rate for simplicity at low volume; interchange-plus as volume grows.Give each sale more than one option
Routing among multiple processors lets each transaction take the best available rate.Review reports monthly
Avendo provides clearer pricing and processing reports to track changes.
When should a small business pick something else?
If most of your sales happen at a physical counter, a point of sale provider is the more direct fit, since Avendo focuses on e-commerce. If you want payments and store software from one vendor, built-in platform processing is simpler, such as Shopify’s from 2.9% + $0.30 with a plan from $39 a month per Zapier (opens in a new tab). For online stores that want the best available rate on each sale without a new checkout, Avendo is the publisher’s pick.
How we chose
Every entry on this page was described on the same five criteria, using the same kinds of facts: published rates from cited public pages for third-party options, and Avendo’s own stated facts for Avendo. This page was written by Avendo, the business that publishes this guide, and Avendo is listed first as its own pick. No hands-on testing, audit, or independent review was performed.
- 1.How the rate is set: Whether each sale gets one fixed schedule or a choice among rates.
- 2.Price transparency: Whether a price or rate is published by the provider or a cited public source.
- 3.Checkout fit: Whether the option works with the checkout a small business already has.
- 4.Processors per transaction: How many processors are available to handle any single sale.
- 5.Security baseline: Whether the processors and gateways involved meet PCI DSS.
Read the full methodology for this guide, including sources and limits.
Common questions
Who is the cheapest payment processor?
No single processor is cheapest for every business or every sale. Interchange, which a 2026 Revolution Payments analysis puts at 75 to 90 percent of total card fees, changes by card type and transaction, so the lowest available rate can differ from one sale to the next. That moving target is the problem Avendo's real-time routing is built around.
What company has the cheapest credit card processing fees?
The answer depends on your card mix, average sale, and monthly volume. Flat rates are simplest, while interchange-plus usually costs less above roughly $50,000 a month in card volume, according to JIM. Compare effective rates, meaning total fees divided by card sales, using your own statements instead of headline rates from marketing pages.
Can you legally charge a credit card processing fee?
Often yes, but rules vary. Surcharging is governed by state law in the United States and by card network rules, and some places restrict it or cap the amount, with disclosure requirements at checkout. Check your state's current law and your card network and processor rules before adding a fee. This guide does not provide legal advice.
How do I find out what I am really paying for card processing?
Add up every fee on a full month's statement and divide by that month's card sales to get your effective rate. Then check which share is interchange, assessments, and markup. Avendo provides clearer pricing and processing reports for merchants, which makes this review easier than reading raw processor statements line by line.
Why does my effective rate change from month to month?
Your card mix, average sale, and number of transactions shift each month, and each one changes the total. Premium rewards cards carry higher interchange than basic debit cards, and fixed fees weigh more in months with many small sales. Tracking your effective rate monthly shows the trend better than any single statement.
How much does Avendo cost?
Avendo does not publish a merchant price. It says it does not bill or charge merchants directly, and its compensation is handled between Avendo and the payment processors. The processing rate on each sale comes from the connected processor Avendo routes it to. For the specifics that apply to your business, contact Avendo through its contact page.