Hand taps credit card against pay terminal in clothing store.

What are Credit Card Processing Fees?

5 min read

Last Updated: March 10, 2026

Table of contents

Key Takeaways

Merchants pay processing fees to companies that enable credit card sales transactions.
Credit card processing fees may vary depending on the merchant and card issuer.
Retailers sometimes pass processing fees on to customers through surcharges, higher costs, or convenience fees.

Credit cards make it easy to shop online or in person at your favorite stores and restaurants. However, that convenience may come at a small cost for retailers. Merchants pay a credit card processing fee (sometimes called a transaction fee, merchant fee, or swipe fee) every time they accept a credit card or debit card payment. Typically, credit card transactions cost more than debit card transactions.

For most stores, restaurants, and other merchants, credit card processing fees are just a cost of doing business. By accepting credit card payments, businesses attract more customers. But when you’re shopping with your credit card, it’s important to remember that some retailers may pass the additional cost onto you.

What is a credit card processing fee?

A credit card processing fee is a fee a business must pay every time it accepts a credit card payment. While each credit card transaction may take only a moment, processing credit cards is complex and involves multiple parties, like the credit card company, credit card network, and payment processor. The additional fee covers credit card processing costs.

Each credit card processing fee includes several different types of charges.

Interchange fee/rate: The interchange fee makes up the largest portion of credit card processing fees. Businesses pay interchange fees directly to credit card issuers, like Discover^®. The cost may vary depending on the type of purchase and credit card.
Assessment fee: An assessment fee goes directly to credit card networks for operational services. Some examples of credit card networks are Visa^® and Mastercard^®. Discover is both a credit card issuer and card network.
Payment processor fee: Some companies that provide payment processing tools may charge a fee on each purchase in addition to monthly or annual fees.
Pricing structures for payment processing fees may vary. Vendors may have to pay a flat rate on each transaction, or a different rate on different transaction types. A payment processor or credit card network may also charge an additional flat fee for certain purchases.

Who pays for credit card processing fees?

Businesses that accept credit card payments pay credit card processing fees. Certain merchants may apply a surcharge on card transactions or pass the additional costs on to customers by raising the prices of the goods or services they sell.

As a consumer, you don’t pay processing fees in a direct way. However, high processing fees may increase the cost of the things you buy. With a cash back credit card, you may earn more rewards if you’re spending more.

Learn More

What factors affect credit card processing fees?

Credit card processing fee amounts may vary across different retailers, even if their products are similar. According to the Congressional Research Service, the factors that influence the cost of credit card processing include:

Credit card network. Credit card networks set their interchange fees. Fees may change several times a year, so processing costs might fluctuate.
Type of credit card. Personal credit cards, business cards, and corporate cards may all come with different processing fees. Rewards cards may carry a higher fee to cover the value of the rewards.
Type of purchase. Online purchases and transactions you make in person may have different costs.
Volume of sales. A vendor with a high volume of sales in a certain network may pay lower fees.

Merchants may also negotiate certain expenses with payment processing companies, bringing down the fees.

How do surcharges and convenience fees work?

Credit card processing fees may add up quickly and affect a company’s profits. Some merchants offset the costs by adding a surcharge on all credit card transactions. However, according to the General Services Administration, some states forbid retailers from adding a surcharge onto customers’ credit card transactions.

Businesses may charge a convenience fee for a credit card payment if it’s not considered a standard payment method. For example, a hair salon that usually accepts cash payments may charge a convenience fee for paying with a credit card.

A credit card processing fee isn’t the type of credit card fee that cardmembers have to pay credit card issuers for certain account actions or transactions. Common credit card fees may include over-limit fees, late fees, balance transfer fees, and annual fees.

Did you know?

Discover has no annual fee on any of our cards. Plus, we’ll automatically match all the cash back you’ve earned on your credit card at the end of your first year. There is no limit to how much we’ll match.¹

Learn More

The bottom line

For many vendors, like restaurants, grocery stores, and shops, credit card processing fees are a standard business expense. But sometimes, the extra cost is passed to you, the consumer, in the form of fees or higher prices. While you might not have to worry about paying processing fees, becoming a more informed consumer may help you continue to make thoughtful spending decisions.

Important Information >

See if you’re Pre-approved before you apply

Check Now

Next steps

See if you're pre-approved

Check Now

Learn about Discover It^® Cash Back Credit Card

See rates, rewards and other info

Learn More