What's a Good Credit Card Processing Rate for My Business?

Benchmarks vary by industry, volume, and pricing model. This guide breaks down what a good processing rate looks like for restaurants, retail, healthcare, and e-commerce — and shows you how to calculate whether you're overpaying.

By Liberty Bancard Team • January 22, 2025 • 10 min read

There is no single universal 'good rate' — it depends on your industry, average ticket, card mix, and pricing model. But there are clear benchmarks that tell you whether you are in the right range or overpaying.

The Number That Actually Matters: Your Effective Rate

Calculate your effective rate by dividing total processing fees by total sales volume, then multiplying by 100. If you paid $720 in total fees on $30,000 in sales, your effective rate is 2.4%. This is the number to benchmark — not your quoted rate.

Industry Benchmarks

Retail (Card-Present)

On fair interchange-plus pricing, effective rates for retail businesses typically land between 1.7% and 2.3%. Above 2.5% is a signal that savings are available.

Restaurants

Most full-service restaurants processing $20,000–$80,000/month see effective rates between 1.8% and 2.5% on fair interchange-plus pricing.

Healthcare and Medical

Healthcare merchants often have higher effective rates (2.0%–2.8%) due to card-not-present transactions and premium credit card usage.

E-Commerce

Online transactions have higher interchange rates. E-commerce merchants on fair interchange-plus pricing typically see 2.4%–3.2%. Above 3.5% for e-commerce signals overpayment.

Red Flags That You're Overpaying

Effective rate more than 0.5% higher than your quoted rate
Monthly fees totaling more than $50 that you cannot account for
PCI non-compliance fee appearing every month
Rate that has increased since you signed your agreement

Find out exactly what a good rate for your business looks like — and whether you're paying it.

Get Your Free Rate Analysis

Frequently Asked Questions

What is a good credit card processing rate for a small business?

For card-present small businesses on interchange-plus pricing, 1.8%–2.4% effective rate is typical. For e-commerce, 2.4%–3.0% is reasonable. Flat-rate pricing (Square, Stripe) typically results in higher effective rates than these benchmarks.

Is 2.9% a good processing rate?

It depends on your pricing model. On interchange-plus pricing, a 2.9% effective rate for card-present businesses suggests room for savings. For in-person businesses, effective rates of 1.8%–2.4% are achievable with well-negotiated interchange-plus pricing.