Merchant Services
Credit Card Processing Fees: How Much Are You Really Paying?
If you're paying 2.9% + 30¢ on every transaction, you're probably leaving $150-400 per month on the table. Most small businesses overpay by 15-40% on credit card processing and don't know it.
Find out your real rate in 60 seconds
Free ToolUpload your processing statement. SKOOR's AI extracts every fee and shows your savings. No signup required.
The Bottom Line
Flat-rate processors like Square (2.6%), Stripe (2.9%), and PayPal (2.99%) charge you the same rate on every card type. But debit cards cost processors ~0.80% and rewards cards cost ~1.80%. You're subsidizing expensive cards with your cheap debit transactions. Interchange-plus pricing fixes this — and can save a typical $15K/month business $1,530+ per year.
What Are Credit Card Processing Fees?
Every time a customer pays with a credit or debit card, your business pays a processing fee. This fee has three components:
- Interchange — paid to the card-issuing bank (set by Visa/Mastercard, ranges from 0.80% to 2.40% depending on card type)
- Assessment — paid to the card network (Visa/Mastercard, typically 0.13-0.15%)
- Processor markup — paid to your payment processor (Square, Stripe, etc.)
On a $100 transaction with a debit card, the interchange is about $0.80, the assessment is $0.14, and the processor markup varies. With flat-rate pricing at 2.9%, you pay $2.90 total — meaning the processor keeps $1.96 in pure margin on that single transaction.
The Flat-Rate Trap: How Square, Stripe, and PayPal Profit
Flat-rate pricing sounds simple: 2.6% (Square), 2.9% + 30¢ (Stripe), 2.99% + 49¢ (PayPal). One rate, every card. Easy to understand.
The problem: you pay the same percentage whether your customer uses a debit card that costs the processor $0.80 or an American Express Platinum that costs $2.40. Flat-rate processors make their highest margins on your cheapest transactions.
Example: $100 transaction
Debit card: Interchange = $0.80. You pay $2.90 (Stripe). Processor keeps $1.96.
Rewards card: Interchange = $1.80. You pay $2.90. Processor keeps $0.96.
Corporate card: Interchange = $2.40. You pay $2.90. Processor keeps $0.36.
You're subsidizing the expensive cards with your debit card transactions.
What Is Interchange-Plus Pricing?
Interchange-plus (IC+) pricing separates the actual cost from the markup. You pay exactly two things:
- Interchange — the actual fee set by Visa/Mastercard (varies by card type, 0.80% to 2.40%)
- Plus — a small, transparent markup from your processor (typically 0.15% to 0.40%)
That's it. No bundled fees. No hidden costs. No subsidizing expensive card types. You see exactly what Visa/Mastercard charges and exactly what your processor charges. This is how enterprise businesses have been paying for decades — SKOOR brings it to every business, regardless of size.
The Math: Flat Rate vs. Interchange-Plus
| Card Type | Flat Rate (2.9%) | IC+ (interchange + 0.25%) | You Save |
|---|---|---|---|
| Debit card | 2.90% | 1.05% | 1.85% |
| Rewards credit | 2.90% | 2.05% | 0.85% |
| Corporate card | 2.90% | 2.65% | 0.25% |
| Amex Platinum | 2.90% | 2.70% | 0.20% |
For a business processing $15,000/month with a typical card mix (40% debit, 45% credit, 15% corporate), the savings are $127.50 per month — $1,530 per year. At $30,000/month, the savings double to $3,060/year.
Flat Rate vs. IC+ Pricing: Pros and Cons
Flat Rate (Square, Stripe, PayPal)
Interchange-Plus (SKOOR)
How to Find Out What You're Really Paying
Most businesses don't know their effective rate. It's buried in your monthly processing statement — a multi-page document full of line items like “PCI Non-Compliance Fee,” “Statement Fee,” and “Batch Processing Fee.”
SKOOR's Statement Analyzerdoes the math for you. Upload your statement (PDF or CSV), and our AI extracts every fee, calculates your effective rate, and shows you exactly how much you'd save with interchange-plus pricing.
It takes 60 seconds. It's free. No signup required. No commitment.
See how much you could save
Upload your processing statement or enter your email to get a personalized savings estimate.
Why Processors Don't Want You to Know
Flat-rate processors make their highest margins on debit card transactions — the cheapest type of payment to process. If every merchant switched to interchange-plus, processors like Square and Stripe would lose billions in hidden markup annually.
That's why they don't offer interchange-plus to small businesses. Square's interchange-plus option requires a custom enterprise agreement. Stripe's custom pricing starts at $250K+ in annual volume. PayPal doesn't offer it at all.
SKOOR believes every business deserves transparent pricing. No minimum volume. No enterprise agreement. Interchange-plus from day one, whether you process $5,000 or $500,000 per month.
How SKOOR's Processing Works
When you sign up for SKOOR, you get two things in one platform:
- A corporate card with expense management, bill pay, and a Business Health Score (0-1,000) — like Ramp, but with no minimum balance
- Interchange-plus payment processing so you see both sides of your money — what you spend AND what you earn
No other platform below $25K combines corporate cards and interchange-plus processing. This is what makes SKOOR different: you see your complete financial picture, and your Business Health Score improves as both sides grow.
What to Do Right Now
- Find your latest processing statement — check your email or processor dashboard (Square Dashboard, Stripe Dashboard, PayPal Activity)
- Upload it to SKOOR's Statement Analyzer — AI extracts every fee in 60 seconds
- See your effective rate and savings estimate — most businesses are surprised
- If you're overpaying, switch to SKOOR — interchange-plus pricing, corporate card, and Business Health Score in one platform
Frequently Asked Questions
What is a good credit card processing rate for a small business?
A good effective rate is 1.5-2.0% with interchange-plus pricing. If you're paying 2.6-2.99% flat rate (Square, Stripe, PayPal), you're likely overpaying by 15-40%, especially on debit card transactions.
What's the difference between interchange-plus and flat-rate pricing?
Flat-rate pricing charges the same percentage on every transaction regardless of card type. Interchange-plus separates the actual Visa/Mastercard cost (interchange) from the processor's markup, so you pay less on cheaper card types like debit cards.
How much can I save switching from Square to interchange-plus?
A business processing $15,000/month typically saves $1,530/year switching from Square's 2.6% flat rate to interchange-plus. The exact savings depend on your card mix — businesses with more debit card transactions save more.
Does SKOOR charge any monthly fees?
No. SKOOR's Free tier includes interchange-plus processing, corporate cards, expense management, bill pay, and a Business Health Score. SKOOR makes money on the interchange itself, not monthly fees.
How do I know my current effective processing rate?
Divide your total processing fees by your total sales volume for the month. Or upload your statement to SKOOR's free Statement Analyzer — it calculates your effective rate automatically and shows where you're overpaying.
Can I keep my current POS system and use SKOOR for processing?
Yes. SKOOR integrates with Clover and other major POS systems. You can keep your existing hardware and switch just the processing backend to interchange-plus pricing.
Stop overpaying on credit card processing
Upload your statement for a free savings analysis, or sign up for SKOOR to get interchange-plus pricing today.