You probably don’t like talking about or even thinking about your credit card processing fees but if you take credit cards in your website, then you better think about them. You don’t have to be an expert in credit card processing but you need to know enough to make sure you’re not throwing away money on ridiculously high fees.


Are You Getting Screwed by High Credit Card Processing Fees?

Credit Card Processing Fees
A good way to make sure you’re getting a good deal is to compare costs with other customers buying the same thing.

So let’s compare fees…

I recently switched credit card processors and am paying a lot less. I didn’t even think I was paying too much but was surprised when I got a quote from a competing company and they were much cheaper than my current card processor.

Before I share the details, let me tell you a little bit about what I learned about credit card fees in the process of switching.


How Credit Card Processing Fees Work & What I WAS Paying & PowerpayThere are different types of fees that you need to understand when it comes to credit card processing. I’ll list them here and explain what I was paying with my previous setup.


Gateway Monthly Fee – The gateway company  initiates your transaction on your website and ensures information is transmitted securely. My gateway company was I was paying them a flat fee of $24.85/month


Processor Monthly Fee – The processor is the actual company processing your credit card transaction and transferring money to your bank account. links up with many credit card processors, but my account was with PowerPay. They were charging me a flat fee of $30.90/month. This included a PCI Compliance fee of $10.00, service fee of $9.95, and regulatory/license fees of $10.95.


American Express Merchant Fee – American Express operates as a separate credit card processor. Their monthly fee was a flat $19.00 for me. For simplicity, we’ll leave that out of this discussion.


Discount Rate Fee – These are the big daddy of credit card processing fees. The discount rate is the percentage of each transaction that is deducted before the deposit is made in your bank account. With, I was paying rates of 2.21% to 3.31% depending on the type of credit card. Many credit card processors use these variable tiered rates for different types of cards (rewards cards, business cards, etc.) because their costs are different for different types of cards.

Some people view this as a sneaky way of charging extra by putting more charges in the category of the higher rate. The majority of my transactions are at the lower rate so I’d like to think that it is the processors way of making sure they are charging the lowest rate possible. It probably just depends on what processor you choose but the goal should be to get the tiered rates as low as possible.

If you are getting charged tiered rates, it would be wise to check your statements to see what percentage of your transactions area getting charged at the higher or lower rate. For a more detailed look at tiered rates and ALL the details of credit card processing fees, here’s a really informative post at

PowerPay Fees

Other Fees – The other fees in my PowerPay statements included assessment fees, batch fees, and access fees. These were usually only about 0.6% but that’s a large percentage considering I didn’t account for these fees and instead focused on the discount rate. These fees are typically charged by any credit card processor and they claim they are just passing along their own costs from the credit card companies.


My Total Cost – $55.75 per month + 3.3%

When someone asks “What are your credit card fees?”, the answer is usually a monthly payment and a percentage. In my case, if you add up all the costs above, I was paying $55.80 a month and about 3.3% in total fees. That’s pretty high by industry standards. My monthly volume was below $2,000 at the time so this amounted to a total cost of around 7%. That’s a pretty big slice of the revenue pie.


My New Deal – $11.95 per month + 2.5%

Moneris Credit Card ProcessingI recently got a business checking account from my bank and they hooked me up with their credit card processor Moneris.

I figured I would at least see what their costs are since I knew my costs were high. As it turns out, their fees are much lower. They do charge tiered rates but they range from 1.99% to 2.99% compared to the 2.21-3.31% that I was paying.

They also do not have a batch fee and some of the regulatory fees I was paying with

Another huge savings is that their total monthly fee is only $11.95 compared to the $55.80 I was paying. That’s a pretty big cost savings, especially for customers processing less than $5,000 per month. One of the reasons the monthly fees are lower is I’m not paying two companies anymore. Moneris processes payments through their own processor, eSELECT Plus, and that is included in the monthly fee.


Am I Happy Now?

happy with credit card feesI’m happy to be saving money but am I getting the best deal now? The truth is…I’m not sure. That’s part of my reason for writing this post. I’m curious to hear feedback from you on what you pay for credit card processing fees. Maybe I’ll find an option to save even more money in the future. Or maybe I’ve helped you realize that you are paying way too much in credit card fees with your current processor.


UPDATE: Switched to FirstData

A few weeks after publishing this post, I had some trouble linking up my new Moneris payment processor with my shopping cart from After some back and forth with both companies, I realized supports Moneris Canada but not Moneris US. So even though they offered a competitive low cost, I was unable to use Moneris to process payments with the shopping cart I’m already using.

First Data Payment ProcessorSo I started searching again and this time I used to search for payment processors. With, you complete an application and get offers from several payment processors with their complete costs listed up-front. It’s a very transparent process. I contacted FirstData since they offered one of the lowest cost options and I know they link up with my shopping cart.

As it turns out, I am getting a lower cost with FirstData than what I was getting with Moneris . FirstData is charging Interchange + .25%. Interchange is the rate charged by credit card companies that all processors pay. So processors offering a quote at Interchant plus a percentage are being transparent about the profit they are taking on all transactions. Their monthly fees were much cheaper at $17 total per month since American Express processing is included.

All in all, I’m happy with the entire process with FirsData. From the sales process all the way to linking my shopping cart to FirstData, they have been very helpful so far. I’ve already processed a few transactions successfully and hope I won’t be needing to switch payment processors for a very long time.


Comment below and tell me how much you are paying in monthly fees and % rate?


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