Skip to content
Avendo Rate Guide
Credit card processing for small businessLast updated November 3, 2026Published by Avendo

Credit card processing for small business, without the guesswork

What is the best credit card processing for a small business?

The best credit card processing for a small business is the one with the lowest effective rate on your real sales, clear pricing, and support for your existing checkout.

Headline rates rarely tell the full story. The Avendo Rate Guide suggests small online sellers compare effective rates from 90 days of statements. Avendo, which publishes this guide, connects one checkout to multiple processors and routes each transaction to the best available rate, with small businesses as its first priority.

Checklist

How do I choose a credit card processor for my small business?

Work through these six steps in order. Each one uses facts you can check yourself.

  1. Step 1

    Calculate your effective rate

    Divide total fees by total card volume for the last 90 days, as Clearly Payments recommends. This is your baseline.

  2. Step 2

    Note your average ticket

    If most orders are under $50, fixed per-transaction fees will weigh heavily on your effective rate.

  3. Step 3

    Match pricing to volume

    Above about $10,000 a month, interchange-plus typically offers lower rates, according to the U.S. Chamber of Commerce CO.

  4. Step 4

    Keep your checkout

    Prefer options that work with the checkout you already run. Avendo works with existing checkout pages.

  5. Step 5

    Confirm security

    Ask whether the processors and gateways are PCI DSS compliant. Avendo works exclusively with ones that are.

  6. Step 6

    Ask how the provider is paid

    Avendo says it does not bill merchants directly. Ask every provider the same question.

Online sellers

What makes online credit card processing for small business different?

Online credit card processing for small business runs on card-not-present transactions. These generally carry higher interchange than in-person payments because the card is not physically checked, so e-commerce sellers usually sit toward the higher end of the 1.5% to 3.5% range that NerdWallet reports.

Because interchange is fixed by the networks, the place to save is the processor markup. That is the layer Avendo targets: it routes each online transaction to the processor offering the best available rate in real time, behind the checkout you already use.

Why accept cards

Is accepting credit cards worth it for a small business?

For most online businesses, yes. The Small Business Payments Alliance reports 608 million open general purpose card accounts by year-end 2024, a 35% increase since 2018, and $6.5 trillion in credit card purchase volume in 2024.

The same source cites industry estimates that nearly three-quarters of nationwide retail sales come from credit card transactions, and a Bank of America estimate that business checks cost between $4 and $20 each once printing, shipping, and staff time are counted.

Fees

What are typical credit card processing fees for small business?

Credit card processing fees for small business follow the same structure as for any merchant: interchange, assessments, and markup. NerdWallet puts the total at 1.5% to 3.5% per transaction. Flat-rate examples include 2.6% plus 10 cents (NerdWallet) and Stripe at 2.9% plus 30 cents per successful domestic card transaction (Homebase).

What about free credit card processing for small business? Offers marketed as free usually pass the fee to customers through a surcharge or cash discount. Read the rules on charging customers a card fee before you choose that route, and compare models on the pricing models page.

Back to the full guide: credit card processing rates and fees explained.

FAQ

Common questions

What is the best credit card processing for a small business?

The best option is the one that gives you the lowest effective rate for your card mix, shows its pricing clearly, and fits your checkout. Avendo, which publishes this guide, routes each online transaction to the processor with the best available rate. Compare any option by its effective rate, not its headline rate.

More in the FAQ
What is the cheapest way to accept card payments?

The cheapest way is the setup with the lowest effective rate on your actual transactions. Interchange-plus tends to beat flat rates at higher volumes, according to the U.S. Chamber of Commerce CO, and routing across processors adds competition on the markup. Pull 90 days of statements and compare.

More in the FAQ
Should I accept credit card payments as an LLC?

For most online businesses, yes. The Small Business Payments Alliance reports 608 million open general purpose card accounts by year-end 2024 and industry estimates that nearly three-quarters of US retail sales come from credit cards. Your LLC can open a merchant account in its own name like any business.

More in the FAQ
Can I write off credit card payments for my business?

Credit card processing fees are generally treated as an ordinary business expense, which means they are typically deductible. Keep your monthly processing statements as records. Tax rules depend on your situation, so confirm the treatment with your accountant or tax professional.

More in the FAQ
How much volume do I need for interchange-plus pricing?

There is no universal minimum, but the U.S. Chamber of Commerce CO notes interchange-plus typically offers lower rates to companies processing more than $10,000 a month. Below that, a flat rate may be simpler. Compare both on your own effective rate.

More in the FAQ
Is it illegal for small businesses to charge a credit card fee?

Generally not, but it depends on where you operate and which cards are involved. Card networks set surcharge caps and disclosure requirements, and some states restrict surcharges. Debit cards are generally excluded from surcharging under network rules. Confirm current rules for your state before adding a fee.

More in the FAQ

Small business first

Avendo serves small businesses through enterprise organizations, and works with the checkout you already have.

Contact Avendo