The short answer
Published flat rates for small businesses run about 2.4% to 2.7% plus a fixed fee in person, and about 2.9% to 3.5% plus a fixed fee online or keyed in. Square charges 2.6% + 15¢ per tap on its free plan; Stripe charges 2.9% + 30¢ online. Every rate is interchange, network fees and the processor's markup combined.
What Do Square, Stripe and PayPal Charge per Card Sale?
Their own pricing pages, as of October 2026:
| Processor | In person | Online | Keyed in |
|---|---|---|---|
| Square (Free plan) | 2.6% + 15¢ | 3.3% + 30¢ | 3.5% + 15¢ |
| Square (paid plans) | 2.5% or 2.4% + 15¢ | 2.9% + 30¢ | 3.5% + 15¢ |
| Stripe | 2.7% + 5¢ | 2.9% + 30¢ | 2.9% + 30¢, plus 0.5% |
| PayPal | Not covered here | 2.99% + fixed fee | Not covered here |
What Is Interchange, and Who Sets It?
Interchange is the largest piece of every card fee, and the card networks set it. Visa says it uses "interchange reimbursement fees as transfer fees between acquiring banks and issuing banks for each Visa card transaction."
You never pay it as a separate bill. In Visa's words, "merchants do not pay interchange reimbursement fees," they pay a "merchant discount" to their own bank or processor, which has interchange inside it. Visa's current US table, with rates effective April 18, 2026, lists a card-present retail debit transaction at 0.80% + $0.15 for exempt issuers and 0.05% + $0.21 for regulated ones.
Why is debit cheaper than credit?
Federal law caps it for large banks. The Federal Reserve's Regulation II limits debit interchange, and "certain small debit card issuers, government-administered payment programs and reloadable general-use prepaid cards are exempt from the interchange fee limitations."
What Are Network (Assessment) Fees?
A small fee to the card brand itself. Stripe describes it as a fee "paid to the card network itself (e.g., Visa, Mastercard)," tied to transaction volume and covering the network's operating costs. On a flat-rate plan it is folded into the one rate you see.
Why Do Online and Keyed-In Sales Cost More?
Every published price list charges more when the card is not physically there. Square charges 2.6% + 15¢ when the card is tapped, dipped or swiped on its free plan, 3.3% + 30¢ online or by invoice, and 3.5% + 15¢ when the number is typed in or a saved card is used. Stripe adds 0.5% for manually entered cards and 1.5% for international cards.
How Do You Work Out Your Effective Rate?
Add every processing fee on the month's statement and divide by total card sales. That one number lets you compare any two quotes.
The fixed fee is why small tickets hurt. A $20 tap at Square's 2.6% + 15¢ costs $0.67, an effective 3.35%. The same rate on a $200 sale costs $5.35, or 2.68%. A coffee shop and a furniture store on the same plan pay very different effective rates. The line-by-line walk-through is in how to read a merchant statement.
Is Flat Rate or Interchange-Plus Cheaper?
It depends on volume and ticket size. A flat rate is simple and predictable. Interchange-plus passes through the real interchange and network cost and adds a disclosed markup, which usually wins once volume grows: Square invites businesses processing "over $250,000 per year" to ask about custom pricing, and Stripe offers "IC+ pricing" on custom packages.
BatchOut quotes both and shows the effective rate on your real statement before you switch. Compare the models in interchange-plus vs flat rate.
Commonly Asked Questions
What is a normal credit card processing fee for a small business?
On published flat-rate plans, about 2.4% to 2.7% plus a fixed fee in person and about 2.9% to 3.5% plus a fixed fee online or keyed in. Square's free plan charges 2.6% + 15¢ per in-person tap; Stripe charges 2.9% + 30¢ online.
Do merchants pay interchange directly?
No. Visa says merchants do not pay interchange fees; they pay a merchant discount to their bank or processor, which includes interchange.
Why are keyed-in card payments more expensive?
Published price lists charge more when the card is not present. Square charges 3.5% + 15¢ for manually entered cards, and Stripe adds 0.5% to its online rate.
How do I calculate my effective processing rate?
Divide total processing fees for the month by total card sales. A $20 sale at 2.6% + 15¢ costs $0.67, an effective rate of 3.35%.
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