Most business owners have no idea how much they're actually paying for credit card processing. Between interchange fees, assessment fees, gateway charges, and mysterious monthly minimums, your true cost can be 2–3 times higher than your quoted rate. Here's what you need to know.
The Fees You See (And Think You Understand)
Interchange Fees
Assessment Fees
The Fees You Don't See
PCI Compliance Fees
Batch Fees
Monthly Minimums
Early Termination Fees (ETF)
The Real Cost: A Case Study
A restaurant owner in Wayne, PA told us his processor quoted him 2.5% + $0.10. Sounds reasonable, right? But when we analyzed his statement, here's what he was actually paying: Interchange at 1.8%, Assessment at 0.13%, Processor markup at 0.57%, PCI compliance fee of $19.99/month, Batch fees of $15/month, and a Monthly minimum of $25. His effective rate was 3.2% plus $60/month in hidden fees.
On $50,000 in monthly volume, that's an extra $600 per month – or $7,200 per year – in fees he didn't expect.
How to Find Your Hidden Fees
- Request a detailed statement from your processor that breaks down every fee
- Look for line items beyond your quoted rate
- Ask about monthly minimums, PCI fees, and batch fees explicitly
- Calculate your effective rate by dividing total fees by total volume
- Compare to industry benchmarks (typically 1.8–2.5% for retail, 2.0–2.8% for restaurants)
The Custom Payments Difference
We believe in transparent pricing. When we provide a statement analysis, we organize what you're paying and identify questions about charges, account terms, and customer-pricing options. Any comparison should be based on the business's statements and written proposals.
Ready to see what you're really paying? Get a free, no-obligation statement analysis from Custom Payments.