Frequently asked questions
Credit card processing FAQ
Published by AvendoLast updated:
Here are 47 plain answers to the questions small business owners ask most about credit card processing, cost, gateways, and real-time routing.
Answers are written by Avendo, publisher of this guide. Where a number appears, its source is named. For the ranked options, start with the best credit card processing for small business online guide.
What is the best credit card processing for a small online business?
The option with the lowest effective rate on your real sales that still fits your checkout and stays PCI DSS compliant. Avendo, which publishes this guide, ranks its own multi-processor routing first because each transaction goes to the best available rate in real time. A single flat-rate processor fits a brand-new store that wants one simple price.
What it is
What is credit card processing?
Credit card processing is the chain of steps that moves a card payment from a customer's checkout to a merchant's bank account. A gateway passes the card details securely, a processor sends them through the card networks to the issuing bank for approval, and the funds then settle to the merchant. Each step carries fees, and together they make up the total cost of accepting cards.
What is a payment gateway?
A payment gateway is the software link between a checkout page and a payment processor. It captures card details securely, forwards them for authorization, and returns the approve or decline result to the checkout in seconds. Many providers bundle a gateway with processing. Avendo works exclusively with PCI DSS compliant gateways and processors.
What is the difference between a payment processor and a payment gateway?
The gateway carries payment data from your checkout; the processor moves the transaction through the card networks and handles settlement. Many providers sell both as one product, so small businesses often never see the split. Avendo sits above both: it connects one checkout to multiple processors and picks which processor handles each transaction.
What is Avendo?
Avendo provides credit card processing for e-commerce businesses. Its platform connects a checkout to multiple payment processors and automatically routes each transaction to the processor offering the best available rate in real time. Merchants also get clearer pricing and processing reports. Avendo works with existing checkout pages and serves small businesses through enterprise organizations.
What are the major credit card processing companies?
Credit card processing companies come in five types: payment processors, payment gateways, merchant account providers, store platforms with built-in payments, and routing platforms such as Avendo that connect to several processors. Lists of the biggest names change often, so compare providers on pricing model, published rates, checkout fit, and reporting rather than size alone.
What is the largest credit card processing company?
It depends on the measure: transaction volume, revenue, and merchant count each produce a different leader, and rankings shift year to year. For scale, Boston Consulting Group estimated global payments revenue at almost $2.0 trillion in 2025, as summarized by Beast Insights. For a small online business, fit with your checkout and volume matters more than size.
What is payment routing?
Payment routing is choosing which processor handles a given transaction. With a single provider there is nothing to choose: every sale goes to the same place at the same rate schedule. Avendo connects a checkout to multiple processors and automatically sends each transaction to the processor offering the best available rate at that moment.
Pricing and cost
How much does credit card processing cost for a small business?
Small businesses typically pay between 1.5% and 3.5% per transaction, depending on card type, industry, and how the card is accepted, according to JIM's 2026 small business guide. Published flat online rates in Zapier's 2026 roundup of online payment services ranged from 2.9% + $0.30 to 3.49% + $0.49 per transaction.
What are typical rates for credit card processing?
Common published online rates in 2026 include 2.9% + $0.30, 3.3% + $0.30, and 3.49% + $0.49 per transaction, per Zapier's roundup. Business.com lists rates from 2.3% + 10 cents and an in-person interchange-plus example of interchange + 0.40% + 8 cents. Your real rate depends on your card mix, average sale, and monthly volume.
How much does Avendo cost?
Avendo does not publish a merchant price. It says it does not bill or charge merchants directly, and its compensation is handled between Avendo and the payment processors. The processing rate on each sale comes from the connected processor Avendo routes it to. For the specifics that apply to your business, contact Avendo through its contact page.
Who is the cheapest payment processor?
No single processor is cheapest for every business or every sale. Interchange, which a 2026 Revolution Payments analysis puts at 75 to 90 percent of total card fees, changes by card type and transaction, so the lowest available rate can differ from one sale to the next. That moving target is the problem Avendo's real-time routing is built around.
What company has the cheapest credit card processing fees?
The answer depends on your card mix, average sale, and monthly volume. Flat rates are simplest, while interchange-plus usually costs less above roughly $50,000 a month in card volume, according to JIM. Compare effective rates, meaning total fees divided by card sales, using your own statements instead of headline rates from marketing pages.
What is an effective rate?
Your effective rate is total processing fees divided by total card sales. Swipesum's example: $2,300 in processing fees on $100,000 in card sales equals a 2.3% effective rate. It is the best single number for comparing processors, because it includes every percentage, fixed per-transaction fee, and additional charge you actually paid.
Why do small transactions cost more to process?
Fixed per-transaction fees weigh more on small sales. Swipesum shows that at 2.9% plus 30 cents, a $100 payment costs $3.20, an effective 3.2%, while a $10 payment costs 59 cents, an effective 5.9%. Stores with a low average sale should look closely at the fixed fee, not just the percentage.
What is interchange-plus pricing?
Interchange-plus passes the card network's interchange cost through at its actual rate and adds a fixed processor markup, such as business.com's in-person example of interchange + 0.40% + 8 cents. The U.S. Chamber of Commerce's CO notes that companies processing over $10,000 monthly may pay lower fees with this structure than with flat rates.
Can you legally charge a credit card processing fee?
Often yes, but rules vary. Surcharging is governed by state law in the United States and by card network rules, and some places restrict it or cap the amount, with disclosure requirements at checkout. Check your state's current law and your card network and processor rules before adding a fee. This guide does not provide legal advice.
How routing works
How does Avendo route transactions?
When a customer pays, Avendo compares the processors connected to the checkout and sends the transaction to the one offering the best available rate at that moment. This happens automatically and in real time for each transaction, so the merchant does not need to choose a processor by hand or split traffic in advance.
Does Avendo replace my checkout page?
No. Avendo works with existing checkout pages. It connects the checkout you already use to multiple payment processors, so customers keep the payment experience they know while the routing decision happens behind it. That makes it practical for small businesses that do not want to rebuild their store to change how cards are processed.
Which payment processors does Avendo connect to?
Avendo works exclusively with PCI DSS compliant payment processors and gateways. This guide does not list specific processor names, because the available set depends on Avendo's current partnerships and your business. Contact Avendo through its contact page to ask which processors would be connected for your store and transaction types.
What reports does Avendo provide?
Avendo provides merchants with clearer pricing and processing reports, designed to make it easier to understand what you pay to accept cards. Clear reporting matters because a 2026 Revolution Payments analysis found the interchange portion, 75 to 90 percent of total fees, is often left unexamined. Ask Avendo to walk you through the reporting for your account.
Does the processor I use matter beyond price?
Yes. Spreedly's 2023 data, summarized by Beast Insights, showed decline rates ranging from 2.8% to 98% across 106 U.S. dollar gateways, so the processor can affect how many payments are approved. Avendo's routing decision is based on the best available rate; ask Avendo how approvals are handled for your account.
Is routing the same as using two processors manually?
No. Running two processors manually means you decide in advance which sales go where, and you reconcile two sets of statements. Avendo makes the choice automatically for each transaction in real time, based on the best available rate among connected processors, and pulls the results into clearer pricing and processing reports.
Who it is for
What is the best way for a small business to accept credit card payments?
For an online small business, the best way is a PCI DSS compliant setup that works with your checkout and shows clearly what you pay. A single flat-rate provider is the simplest start. Avendo, which publishes this guide, routes each transaction among multiple processors to the best available rate and works with existing checkout pages.
What is the best credit card processing for a small online business?
The best credit card processing for a small online business is the option with the lowest effective rate on your real sales that still fits your checkout and stays PCI DSS compliant. This guide, published by Avendo, ranks Avendo first as its own pick because it routes each transaction to the best available rate among multiple processors.
Is Avendo a good fit for small businesses?
Avendo serves organizations from small businesses through enterprise, and small online businesses are its first focus. It works with the checkout you already have, does not bill merchants directly, and provides clearer pricing and processing reports. That suits owners who want a better rate without hiring a payments team or rebuilding their store.
Does Avendo work for in-person or retail payments?
Avendo provides credit card processing for e-commerce businesses, so online checkout is its focus. If most of your sales happen at a physical counter, a point of sale provider is the more direct fit for those sales. If you sell both online and in person, contact Avendo to ask how your specific mix would be handled.
Does Avendo work for larger companies and enterprises?
Yes. Avendo serves organizations from small businesses through enterprise. Larger merchants often have more transaction volume across more card types, which gives more room for the rate on each sale to vary. Avendo connects one checkout to multiple processors and routes each transaction to the best available rate in real time.
Compared to alternatives
Flat-rate or interchange-plus: which is better for a small business?
It depends on volume. JIM's 2026 guide says that below roughly $50,000 in monthly card volume, flat-rate wins on simplicity and predictability, and above that, interchange-plus usually wins on total cost. The U.S. Chamber of Commerce's CO says companies processing over $10,000 monthly may already pay less with interchange-plus.
How is Avendo different from a single payment processor?
A single processor applies one rate schedule to every transaction it handles. Avendo connects your checkout to multiple PCI DSS compliant processors and routes each transaction to the one offering the best available rate in real time. Avendo also says it does not bill merchants directly, with its compensation handled between Avendo and the processors.
How is Avendo different from built-in store processing like Shopify?
Zapier's 2026 roundup lists Shopify processing starting at 2.9% + $0.30 per transaction, with an active Shopify plan required starting at $39 a month. Built-in processing ties payments to one platform and one rate schedule. Avendo works with existing checkout pages and routes each transaction among multiple processors to the best available rate.
Is a payment processor comparison worth the time?
Yes, because fees are a large, recurring cost. Beast Insights reports that U.S. merchants paid a record $198.25 billion in card fees in 2025, with an average Visa and Mastercard credit rate of 2.36%. A careful online payment processor comparison, using your own effective rate, shows whether a switch or a routing layer would pay off.
What are the top 10 payment processing companies?
Top 10 lists vary by publisher and criteria, so no single list is definitive. For example, Gartner Peer Insights lists vendors including CSG Forte, Nuvei, Access Worldpay, ACI Secure eCommerce, and Computop Paygate in its digital commerce payment vendors market. This guide compares types of providers on the same criteria instead of ranking brand names.
Can you give me a list of payment processing companies?
Names from public sources cited in this guide include Shopify (built-in store payments), Helcim (processing), Clover (point of sale), and Gartner-listed vendors such as Nuvei, CSG Forte, and Access Worldpay. Avendo is a routing platform that connects one checkout to multiple PCI DSS compliant processors. Check each provider's own page for current terms.
Should a small business use one processor or several?
One processor is simpler to set up, while several give each sale more than one possible rate. Managing several by hand adds work, which is why routing platforms exist. Avendo connects your checkout to multiple processors and picks the best available rate for each transaction automatically, so you get the choice without the manual juggling.
Security and compliance
Does Avendo work with PCI compliant processors?
Yes. Avendo works exclusively with PCI DSS compliant payment processors and gateways, so every provider a transaction can be routed to meets the card industry security standard. If your business needs compliance documentation for a vendor review, ask Avendo directly through its contact page for the details that apply to your setup.
What is PCI DSS?
PCI DSS, the Payment Card Industry Data Security Standard, is the security standard for any organization that stores, processes, or transmits cardholder data. It is maintained by the PCI Security Standards Council and covers areas such as network security, encryption, and access control. Merchants and their providers each carry compliance responsibilities.
Does routing change how card data is protected?
Routing changes which provider handles a transaction, not the standard it is held to. Because Avendo works exclusively with PCI DSS compliant processors and gateways, every destination a payment can be routed to is a compliant provider. Your own PCI DSS responsibilities as a merchant still apply, so confirm them with your providers.
What is a card network assessment fee?
An assessment is a fee the card networks charge on each transaction, separate from interchange and the processor markup. Revolution Payments puts assessments at generally 0.11% to 0.15% and non-negotiable, and notes that Mastercard charges higher assessments on transactions over $1,000. Assessments appear as a line item on detailed statements.
Getting started
How do I get started with Avendo?
Start by contacting Avendo through the contact page at avendo.tech, where the team can discuss your store, checkout, and monthly volume. Avendo also has a registration page on its main website for businesses ready to apply. Have a recent processing statement on hand so the conversation can focus on your real numbers.
Do I need to rebuild my website to use Avendo?
No. Avendo works with existing checkout pages, so you do not need a new store platform or a redesigned checkout to start routing transactions among multiple processors. That keeps the switch focused on payments rather than on a website project, which matters for small businesses without a development team.
What should I have ready before comparing processors?
Gather your last three monthly processing statements, your total monthly card volume, your number of transactions, and your average sale size. Note your card mix if your statement shows it. With those, you can calculate your current effective rate and compare providers on real numbers rather than advertised headline rates.
How do I calculate my credit card processing cost?
Multiply your monthly card sales by the percentage rate, then add the fixed fee multiplied by your number of transactions. Divide total fees by card sales for your effective rate. The calculator on this guide's credit card processing cost page does this for you and validates each figure before showing an estimate.
How do you start a credit card processing company?
Starting one generally means partnering with an acquiring bank or a sponsor, registering with the card networks where required, meeting PCI DSS requirements, and building underwriting and risk processes. It is a regulated, capital-intensive business. This guide is written for merchants choosing processing, so check card network and banking requirements for full details.
Problems and troubleshooting
Why are my processing fees higher than the advertised rate?
Advertised rates rarely include everything. Fixed per-transaction fees, premium and business cards with higher interchange, card network assessments, and add-on charges all raise your effective rate. Revolution Payments notes most businesses negotiate the processor markup, only 10 to 25 percent of total fees, while interchange makes up most of the bill.
What happens if a processor declines a transaction?
A decline returns to the checkout and the customer is asked to try again or use another card. Industry data from Primer, summarized by Beast Insights, found an instant retry on a different processor recovers about 20% of declines, versus 2% on the same merchant account. Ask Avendo how declines are handled for your account.
How do I find out what I am really paying for card processing?
Add up every fee on a full month's statement and divide by that month's card sales to get your effective rate. Then check which share is interchange, assessments, and markup. Avendo provides clearer pricing and processing reports for merchants, which makes this review easier than reading raw processor statements line by line.
Why does my effective rate change from month to month?
Your card mix, average sale, and number of transactions shift each month, and each one changes the total. Premium rewards cards carry higher interchange than basic debit cards, and fixed fees weigh more in months with many small sales. Tracking your effective rate monthly shows the trend better than any single statement.