A card processing fee has three parts: interchange to the bank that issued the card, an assessment to the card network, and the processor's markup. At Stripe's published online rate of 2.9% plus 30 cents, the fee on a $9,000 hot tub is $261.30. Your effective rate is your total fees divided by your total card sales.
Figures marked "example" are illustrative.
Who takes what
A card fee has three parts.1
- Interchange goes to the bank that issued the customer's card. It varies by card type, by whether the card is present, and by industry. The card networks publish the formulas.
- Assessments go to the network, Visa or Mastercard. They follow volume and are the same whichever processor you use.
- The processor's markup goes to the company that runs your payments, as a percentage, a per-transaction fee, or both. This is the only part set by your contract.
Interchange is the largest piece and is not negotiable; only the markup is.
Flat rate against interchange-plus
A flat rate (also called blended) is one price for every card. Stripe's published US price for online card payments is 2.9% plus 30 cents, plus 0.5% when the card number is keyed in by hand. In person on a Stripe reader it is 2.7% plus 5 cents. Stripe adds 1.5% for international cards.2
Interchange-plus passes interchange and assessments through at cost and adds the processor's markup as a separate line. You can see each piece on the statement. Stripe's own explainer says the markup formula is fixed in a contract, and that the cost moves with your customers' card mix.1
On a $9,000 sale, with example interchange-plus numbers of 2.00% interchange, 0.14% assessments, and a 0.30% plus 10 cent markup:
| Pricing | Fee on $9,000 |
|---|---|
| Stripe online, published | $261.30 |
| Stripe online, card keyed by hand, published | $306.30 |
| Stripe in person, published | $243.05 |
| Interchange-plus (example) | $219.70 |
In this example the gap to the online flat rate is $41.60 a sale. Across 100 such sales that is $4,160 a year. Interchange-plus is cheaper only when interchange plus the markup and monthly fees come in under the flat rate, which depends on the cards your customers carry. A flat rate is easier to predict.
A deposit taken by keying a card over the phone is the costly case on a flat rate, so ask your processor how it prices keyed cards. You can also ask for custom pricing; Stripe's pricing page says custom pricing may differ from the standard rates.2
What a software-plus-processing bundle costs
Some systems bundle the point of sale and the processing in one monthly deal, and the software price can hide inside a higher card rate.
Example: a store takes 100 card sales of $9,000, or $900,000, in a year. At 2.9% plus 30 cents that is $26,130. A bundle quoted at 3.25% plus 30 cents is $29,280. The $3,150 difference is what the bundle charges for the software, on top of any monthly fee. Ask for the software price and the card rate separately.
Surcharging a credit card
A surcharge is an extra fee added to a sale because the customer pays by credit card. The card networks allow it with conditions, and some states ban or limit it. Both sets of rules apply at once.
Visa's published questions and answers (version dated February 15, 2024) set these conditions for a US merchant:3
- Tell your processor at least 30 days before you start.
- Surcharge credit cards only. Debit and prepaid cards cannot be surcharged, even when the customer picks "credit" at the terminal.
- Keep the surcharge at or below your cost for that card, or 3%, whichever is lower.
- Show it as a separate charge on the receipt, and post notice at the entrance and at the point of sale. Online sales need notice too.
Example: on $9,000, a 3% surcharge is $270. If your cost on that card is 2.44%, the limit is $219.60, not $270. Mastercard publishes its own rules, with its own cap; confirm it with your processor.4
These network rules may change. A revised settlement between Visa, Mastercard and US merchants, about $38 billion, won preliminary approval in federal court in New York on June 9, 2026, with a final fairness hearing set for November 16, 2026. As reported, it would let merchants surcharge Visa and Mastercard credit cards under simpler rules capped at 3%, while debit surcharges stay barred and state laws still apply.10 Until final approval, the rules above stand.
States that ban or limit surcharges
State rules as of November 3, 2026, from each state's own text:
| State | Credit card surcharge | Source |
|---|---|---|
| Massachusetts | Banned: no surcharge on a cardholder who pays by credit card instead of cash, check or similar means | 5 |
| Connecticut | Banned, including "processing fees" and "non-cash adjustments" on a receipt; a posted cash discount is allowed | 6 |
| Maine | Banned on credit and debit cards | 7 |
| Oklahoma | Allowed since November 1, 2025, up to 2% or the actual processing cost, whichever is less, posted at the entrance, the point of sale and online | 8 |
| Colorado | Allowed since July 1, 2022, up to 2% or the merchant discount fee, not on debit, with notice | 9 |
Visa's February 2024 note listed Connecticut, Maine, Massachusetts, Oklahoma and Puerto Rico as prohibiting surcharges, and Colorado, Minnesota, New Jersey and New York as having requirements; Oklahoma has since changed its law, and Visa says its list may contain errors and is not legal advice.3 For any other state, read its statute or ask its attorney general's office.
Cash discount programs
A cash discount sets the card price as the regular price and gives cash a lower one. Where surcharges are banned, this is usually the permitted route. Connecticut's consumer protection department allows a cash discount posted on a sign, such as "all listed prices are discounted by 3% if you pay in cash."6 Oklahoma's law says there is no limit on the discount a seller may offer, if it is disclosed clearly.8 Show the cash price on the quote.
What to check in a processing contract
- Term and renewal. How long it runs, and whether it renews on its own.
- Early termination. The fee, and how it is worked out.
- Equipment. Whether terminals are bought or leased. A lease can outlast the processing agreement.
- The markup, written out. The percentage and per-transaction amounts, and every monthly and statement fee.
- Pass-through. That interchange and assessments are passed at cost, and whether the rate can change during the term.
- Keyed cards, disputes and refunds. What each costs. Stripe lists $15 per dispute received on its standard pricing.2
- Surcharge support. Whether the processor will register your surcharge and flag it to the networks.
Questions
Can I surcharge debit cards?
No. Visa's rules bar surcharges on debit and prepaid cards, even when the customer chooses "credit" at the terminal.
How much can I charge as a credit card surcharge?
Under Visa's rules, no more than your cost for that card or 3%, whichever is lower, and less where your state sets a lower cap, such as 2% in Colorado and Oklahoma.
What is the difference between a surcharge and a cash discount?
A surcharge adds a fee to the price when the customer pays by credit card. A cash discount lowers the price when the customer pays in cash. States that ban surcharges often allow a posted cash discount.
What is interchange?
The fee the customer's card-issuing bank receives on each card sale, set by the card network's published schedules. It is the largest part of what a store pays to take a card.
How Retavon handles it
A store takes cards on its own Stripe account, with no markup from Retavon, or through the processor it already uses, added when it asks. Retavon takes no percentage of sales and charges a flat price per store, so the card rate you negotiate is the rate you pay.
If your state and your card rules allow a surcharge, Retavon lets you add one to a quote or order as a charge on its own line, as a percent or a set amount, so it shows separately on the receipt.
Sources
- Stripe, interchange-plus pricing explained (read November 3, 2026): stripe.com/resources/more/interchange-plus-pricing-explained
- Stripe, US pricing (read November 3, 2026): stripe.com/pricing
- Visa, Merchant Surcharging Q&A, version 02152024 (read November 3, 2026): usa.visa.com
- Mastercard, merchant surcharge rules: mastercard.us
- Massachusetts General Laws, chapter 140D, section 28A (read November 3, 2026): malegislature.gov
- Connecticut Department of Consumer Protection, credit card surcharge (read November 3, 2026): portal.ct.gov/DCP/Legal/Credit-Card-Surcharge
- Maine Revised Statutes, title 9-A, section 8-509 (read November 3, 2026): legislature.maine.gov
- Oklahoma Senate Bill 677, enrolled, 2025: oklegislature.gov
- Colorado Senate Bill 21-091, Credit Transaction Charge Limitations (read November 3, 2026): leg.colorado.gov/bills/sb21-091
- U.S. News and Reuters, "Visa, Mastercard $38 Billion Swipe Fee Settlement Wins US Judge's Approval", June 9, 2026: money.usnews.com; Payments Dive, "Visa, Mastercard reach legal pact with merchants": paymentsdive.com