Guide
Credit card processing fees explained
Processing fees are not one line. They are a stack: network costs, processor margin, and extras that show up monthly whether you notice them or not.
Interchange and assessments
Interchange is paid to the card-issuing bank. Assessments go to the card networks. These amounts vary by card product, acceptance method, and merchant category.
Processor markup
This is where two “similar” offers diverge. Markup can be a disclosed basis-point add-on, a bundled discount rate, tiered buckets, or flat retail pricing from a POS vendor.
The fees people forget
Monthly service fees, PCI programs, gateway fees, and equipment rental can matter as much as the percentage. Always include them when you calculate effective rate.
Related reading
FAQ
Can PFAdvance change interchange rates?
No. Interchange is set by the card brands. We work on the processor margin and program structure around it.
Are online payments always more expensive?
Card-not-present transactions often price into higher interchange categories. That is a network reality, not just a processor preference.