Every card transaction passes through 4 parties who each take a cut: the card network, the card-issuing bank, your acquiring bank, and your payment processor. You see one rate — it's actually 4 separate fees bundled.
Visa/Mastercard/Amex charge between 0.13–0.15% per transaction. Small, but unavoidable.
The issuing bank (your customer's bank) takes the largest cut — typically 1.5–2.2% for rewards cards, lower for debit.
Your payment processor (Stripe, Square, etc.) adds 0.2–0.5% on top plus a per-transaction fee ($0.10–$0.30).
Premium travel and cashback cards have higher interchange rates — the rewards come from merchant fees.
Don't try to surcharge customers without understanding your state laws and card network rules — illegal or policy-violating surcharges create chargebacks and account risk.
Roughly 70–80% goes to the card-issuing bank (interchange), 10–15% to the card network, and 10–15% to your processor.
Reward programs are funded by interchange. The higher the cardholder reward, the higher the interchange rate charged to the merchant.
In most US states, yes — with required disclosures and network compliance. Some states restrict it. Cash discount programs are an alternative.
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💬 Text PJ · 773-544-1231Updated: 2026-03-04T19:46:03Z · SideGuy Solutions
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See Also — Related Clusters