Business & Sales

What Is a Payment Processing Fee?

A payment processing fee is the charge a business pays to accept electronic payments, such as credit and debit cards or online payments. It is commonly a percentage of the transaction plus a small fixed amount per transaction, and it combines card network, issuing bank, and processor charges.

Example

At 2.9% + 0.30 per transaction, a 50 sale costs 1.75 in fees, so the business receives 48.25.

Types of Pricing

Processors commonly use flat-rate pricing (one percentage plus a fixed fee for most cards) or interchange-plus pricing (the card network's cost passed through, plus a processor markup). Card-present and online transactions are often priced differently.

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🔗 Related Terms

Marketplace Seller Fees Referral Fee Variable Costs

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.