What are the lowest credit card processing fees?

Last Updated on February 10, 2025 by Darren Belgrave

Credit card fees can significantly impact a business's bottom line. In this article, we will explore the processors that offer the lowest credit card processing fees for in-person and online transactions.

What makes the credit card processing fees low?

Credit card fees are primarily made of two main components: interchange fees and processor margins.

• The interchange fee is set by the credit card network (Visa, MasterCard, etc.) and is paid to the customer's issuing bank for processing credit card transactions. This fee fluctuates based on factors such as the type of card used (credit, debit, or rewards), how the transaction is processed (in-person or online), and your business’s industry.
• Processor margin is the markup added by the payment processors for handling the transaction.

Since the interchange fee is non-negotiable, it’s the processor margin that ultimately determines whether your fees are high or low. 

The two most common pricing models that credit card processing companies use are flat-rate and interchange-plus pricing:

• Flat-Rate Pricing: Since interchange fees fluctuate with each transaction, your actual costs can vary. To simplify this, most processors charge a fixed rate, such as 3% + 25¢ per transaction. However, this rate needs to be high enough to ensure profit margins on all transactions, meaning you often overpay for most of the transactions.

• Interchange-Plus Pricing: Processors like Helcim use interchange-plus pricing, which passes the true cost of each transaction directly to you, along with a transparent, fixed margin. For example, Helcim charges Interchange + 0.40% + 8¢. This model helps merchants save, on average, 25% compared to flat-rate pricing.

What are the lowest credit card processing fees?

The credit card processing fees are ranging from 1.7% - 3.5%, depending on the credit card processors.

Top processors with the lowest credit card processing fees for Canadian businesses:

Top processors with the lowest credit card processing fees for U.S. businesses:

Why do online transactions cost more than in-person ones?

In online transactions, customers are not physically present to make the purchase. This increases the risk of fraudulent activities and chargebacks compared to in-person transactions.

A chargeback occurs when a cardholder contacts their bank to reverse a transaction. If the merchant cannot or will not provide a refund, the credit card processor must cover the cost to return the money to the bank.

Because of the risk, credit card networks (Visa, MasterCard, etc.) and banks often set higher interchange fees, resulting in higher processing fees for online transactions.

Can I negotiate better credit card transaction fees?

You can often negotiate better payment processing fees, especially if your business handles high monthly transaction volume or large average sales. 

While negotiating for better rates, be aware of any monthly minimums or processing requirements. These are the minimum processing volumes your business needs to maintain to keep the new rate. Some processors may charge additional fees if you don’t meet the minimum processing volume.

Unlike other credit card processors, Helcim automatically reduces the fees when you reach a certain processing volume. This ensures you get the cheapest credit card processing without the hassle of negotiating for better rates.

Can I pass credit card fees to the customers?

You can pass processing fees to the customers through surcharging. Surcharging is adding a processing fee to their purchase when they pay with a credit card. 

The legality of surcharging varies by country and, in the United States, by state. Here are some key points to consider:

• United States: Surcharging is permitted in most states. States where surcharging is prohibited include Maine, Connecticut, Massachusetts, New York, and Puerto Rico.
• Canada: Surcharging is allowed in all provinces, except Quebec.

Aside from government law, card brands like Visa, MasterCard, American Express, and Discover have specific rules for surcharging:

• Notification: Businesses must notify the card networks and their acquiring bank of their intention to surcharge at least 30 days before implementation.
• Fee Limits: The surcharge is capped at 2.4% in Canada and 3% in the U.S.

Which businesses are passing on their fees?

We took a sample of our merchants using Helcim Fee Saver, and here are the businesses broken down by industry. Based on this snapshot, professional Services make up the largest slice at nearly 30%, followed by contractors/home services, retail Goods, and healthcare. We're excited to see such a diverse range of businesses—from local trades and retailers to bookkeepers and wellness providers—all benefiting from Helcim Fee Saver. This variety highlights the broad appeal of our payment solutions and our commitment to supporting small businesses across multiple industries.

Sample of merchants in various industries using Helcim Fee Saver

With Helcim fee saver, you can enable surcharging with one click. As a result, you can enjoy zero-cost payment processing on credit card payments.

Save 25% on credit card transaction fees with Helcim

With Helcim, you can accept credit card payments and enjoy some of the cheapest credit card processing—with no monthly fees, no contracts, and no surprises.

Switching to Helcim’s interchange-plus pricing model can lead to substantial savings for businesses compared to flat-rate pricing. Based on our latest analysis, industries with high transaction volumes and lower-risk payments tend to benefit the most.

Enterprise utilities see the greatest savings at 48.45%, followed by government (41.54%) and gas stations (40.54%), where large ticket sizes and frequent transactions drive down costs. Nonprofits (31.04%) and health & beauty (31.62%) also enjoy significant savings—important for industries where every percentage point matters.

Even online sales (20.66%) and SaaS platforms (20.20%), which often rely on card-not-present transactions, still achieve meaningful reductions. With Helcim’s transparent pricing, businesses across industries can keep more of their hard-earned revenue, improving profitability while avoiding hidden fees.

Helcim offers more than just low fees. One account gives you access to a suite of free tools for both in-person and online payments, including a Free POS App, Invoicing, Online POS, and more.

Start accepting credit card payments with Helcim is easy - no complicated paperwork or signatures. The sign-up process takes just five minutes.

If you’re stuck with your current provider, our Merchant Buyout Program offers up to $500 in credits to help cover contract cancellation or equipment costs. We’ll guide you through every step, from handling paperwork to migrating your data to Helcim.

Break up with your current provider and switch to Helcim for better service and lower fees with our Merchant Buyout Program.

Break up with bad rates.

Feeling stuck with your provider? We'll waive $500 of your processing fees when you switch to Helcim.

Learn more

FAQ

What are hidden credit card costs you should be aware of?

Hidden costs you should be aware of include monthly fees charged for a merchant account, cancellation fees if you decide to terminate your contract early, and setup fees when getting started with a payment processor. Additionally, if you're accepting payments online, a payment gateway fee may be applied to cover the cost of securely processing transactions. You should also watch out for chargeback fees, which are charged when a customer disputes a transaction.

What is the difference between credit and debit card fees?

The main difference between credit and debit card fees comes down to risk. Debit card payments generally have lower fees because there’s less risk for the customer’s bank, as the funds are immediately withdrawn from the customer’s account. In contrast, credit cards carry higher fees due to the added risk of lending credit.

Do credit card processors accept other payment methods?

Yes, they offer a variety of payment options beyond just credit and debit cards, such as mobile payments like Apple Pay, ACH payments for bank transfers, cash payments, and checks.