1. Interchange Fees

These are set by the card networks and paid to the issuing bank. They vary based on card type, rewards, and how the transaction is processed. These fees are not negotiable.

2. Card Brand and Network Fees

Visa, Mastercard, Discover, and American Express charge assessment and network fees. These are also not negotiable and apply to all businesses.

3. Processor Markup

This is what your processor adds on top. This includes percentage markups, per-transaction fees, and monthly charges. This is where overcharging usually happens and where savings are possible.

The key metric is not your advertised rate. It is your effective rate, calculated as total fees divided by total processed volume.

Example:
A business processing $40,000 per month with $1,200 in total processing fees has an effective rate of 3%.

If interchange and card network fees account for approximately 2% of volume ($800), the remaining 1% ($400) is processor markup and monthly charges. Interchange cannot be reduced. That remaining portion is the only part subject to review or negotiation.

What Is a Normal Credit Card Processing Rate?

There is no single “good” rate. Normal depends on card mix, transaction size, and pricing model.

That said, red flags include:

• Processor markup that is significantly higher than necessary

• Multiple vague monthly fees with unclear purpose

• Tiered pricing structures that obscure true costs

• Flat-rate pricing that no longer fits your volume

In most cases, the question is not whether your total rate is “high” or “low,” but whether the processor markup portion of that rate is reasonable for your volume and transaction profile.

If you cannot easily explain why you are paying what you are paying, that is a problem.

Step-by-Step: How to Reduce Credit Card Processing Fees

Step 1: Review Your Full Merchant Statement

A real review looks at all pages of your statement, not just the summary. This includes transaction fees, monthly charges, and year-to-date totals.

Step 2: Calculate Your True Effective Rate

This means dividing total fees by total processed volume. This number tells the real story.

Step 3: Identify Junk Fees and Pricing Issues

Common issues include duplicate monthly fees, inflated per-transaction charges, and pricing models that no longer make sense for your business.

Step 4: Decide Whether Negotiation Makes Sense

In many cases, fees can be reduced by negotiating markup or removing unnecessary charges. Switching providers is not always required.

Step 5: Monitor Ongoing Changes

Even after a reduction, fees can increase again over time. Ongoing monitoring is how you prevent quiet rate creep.

These steps can be done independently, but they are most effective when viewed as an ongoing process rather than a one-time fix.

When It Does NOT Make Sense to Negotiate or Switch

Not every business is overpaying.

In some cases:

• Your pricing is already competitive

• Savings would be minimal

• Changing pricing models could increase costs

• Operational risk outweighs potential savings

A legitimate review should tell you when you are already in a good position.

In these situations, the value of a review is confirmation and visibility, not necessarily immediate savings.

Common Mistakes Small Businesses Make

• Focusing on a single rate instead of total cost

• Assuming flat-rate pricing is always simpler or cheaper

• Trusting “free audits” tied to sales incentives

• Ignoring small monthly fees that add up over time

Avoiding these mistakes matters more than chasing the lowest advertised rate.

Frequently Asked Questions About Credit Card Processing Fees

Can I lower my credit card processing fees without switching processors?

In many cases, yes. Reviewing your statement and negotiating processor markup or removing fees can reduce costs without changing providers.

My processor says my rates already look good. How would I know otherwise?

Processors often reference headline rates or selective numbers which is why total fees relative to total volume is the most reliable comparison.. The only reliable way to know is to calculate your effective rate using total fees and total volume, then review how much of that is processor markup versus non-negotiable costs.

Will reviewing my statement affect my account or relationship with my processor?

No. Reviewing your statement does not change your account, pricing, or service. Negotiation only happens if you choose to pursue it.

How often do processors raise rates?

There is no fixed schedule. Increases can happen quietly through new fees, pricing changes, or assessment adjustments.

Is a free rate review worth it?

It depends on incentives. Reviews tied to selling you new processing often focus on switching, not true cost comparison.

What documents are needed for a real review?

A full merchant statement, typically including all pages for a recent month.

Is there a standard or “normal” processor markup?

There is no universal standard, but many small businesses pay more than necessary due to outdated pricing or unnecessary fees. Markup should be evaluated in context of volume, transaction size, and services provided, not compared blindly to a single benchmark.

Can negotiating fees cause service issues or retaliation?

In most cases, no. Processors negotiate pricing regularly. However, it is important to approach discussions correctly and understand which fees are appropriate to challenge and which are not.

If I switch pricing models, could my fees go up instead of down?

Yes. Switching models without understanding your card mix and transaction patterns can increase costs. This is why pricing changes should be evaluated using real statement data, not assumptions.

How often should a business review its credit card processing fees?

At a minimum, annually. More frequently if your volume changes, your business model evolves, or new fees appear on your statement.

Are monthly fees always a problem?

Not necessarily. Some monthly fees are legitimate. The issue is when fees are duplicated, vaguely described, or no longer aligned with the services being provided.

My business is small. Does it even make sense to review fees?

Yes, but expectations should be realistic. Smaller businesses may see modest savings, but even small monthly reductions add up over time and improve visibility into costs.

How Trailblaze Integrated Solutions Helps

If you want help reviewing your statement, Trailblaze Integrated Solutions provides independent analysis focused on transparency.

What we do:

• Review full merchant statements

• Identify inflated rates and unnecessary fees

• Assist with negotiation when it makes sense

• Monitor accounts monthly to prevent increases

What we do not do:

• Sell processing

• Receive kickbacks from providers

• Guarantee savings

If you want a second set of eyes on your statement, you can start with a review and decide next steps from there.