How do credit card processing fees work?

Q: What's a typical processing rate?

It varies by card mix and pricing model. Rather than quote a headline rate, we show your real effective cost from a recent statement.

Q: What is interchange?

The wholesale fee set by the card networks and paid to the cardholder's bank. It's the same for every processor.

Q: Are debit cards cheaper?

Usually yes — basic debit carries lower interchange than rewards or business credit cards.

Credit card processing fees are made up of interchange (set by the card networks and paid to the issuing bank), network assessments, and your processor's markup. Only the markup is negotiable — and Velocity's Cash Discount Program can offset almost all of it.

Your effective processing cost has three parts. Interchange is the largest and is set by Visa, Mastercard, and the other networks — no processor can discount it. Assessments are small network fees. The markup is what your processor adds on top, and it's the only part you can actually control.

Flat-rate pricing hides interchange inside one padded percentage; interchange-plus shows it transparently. Better still, a Cash Discount or dual pricing program can offset almost all of your processing fees. Velocity reviews a recent statement and shows your exact savings at no charge.