Credit card processing for small business
Most small businesses in the U.S. pay between 2.5% and 3.5% of every card sale in processing fees, plus a fixed per-transaction fee that typically runs 10¢ to 30¢. On a typical $25 card-present sale, that combination often pushes the real cost above 3%. Simple charges a flat 2.19% on card-present transactions with no per-transaction fee.
How to work out what you are actually paying
The only number that matters is your effective rate. It is the total processing fees you paid divided by your total card sales volume, expressed as a percentage. Everything else — the advertised percentage, the per-transaction fee, the "qualified" rate — is just an input.
Effective rate = (Total fees ÷ Total card volume) × 100
$847 in fees ÷ $28,500 in sales × 100 = 2.97%
Pull your last three statements and run that calculation for each month. If the number bounces around, you are probably on interchange plus or tiered pricing. If it is stable but higher than the headline rate, the per-transaction fee or monthly fees are the reason.
Once you know your effective rate, compare it directly to the lowest credit card processing rate Simple publishes.
Why small tickets get hit hardest
A percentage scales with the sale. A fixed fee does not. The table below shows what a 2.6% + 10¢ model costs at three common ticket sizes, compared to a flat 2.19% with no fixed fee.
| Ticket size | Per-transaction fee | What the fee adds | True cost at 2.6% + 10¢ | Cost at 2.19% flat |
|---|---|---|---|---|
| $8 | 10¢ | +1.25% | 3.85% | 2.19% |
| $25 | 10¢ | +0.40% | 3.00% | 2.19% |
| $60 | 10¢ | +0.17% | 2.77% | 2.19% |
At $8, the fixed fee is more than half the percentage cost. Coffee counters, quick-service spots, and convenience stores with low average tickets feel this every day. At $60 the fixed fee barely matters, but the headline rate still does.
Flat rate, interchange plus, and tiered
Flat rate
Best for: Most small businesses under $1M in card volume
Pros
Predictable, easy to forecast, no statement surprises
Cons
Can cost slightly more than interchange-plus on the cheapest debit cards
Interchange plus
Best for: High-volume merchants with staff to audit statements
Pros
Passes through network cost; can be cheaper with the right card mix
Cons
Rate moves every month; requires time and knowledge to verify
Tiered pricing
Best for: Almost no one in 2026
Pros
Sounds simple at signup
Cons
Processors control which transactions land in expensive buckets; often the costliest option
What to look for in a processor
Use this checklist against any provider, including Simple. If a processor cannot give you a clear yes on the first four items, keep looking.
- A single published rate with no per-transaction fee
- No monthly minimums, statement fees, or PCI surcharges
- Month-to-month contract with no early-termination fee
- Next-day or faster deposit timing
- In-person, online, invoice, and keyed-in payment options
- Integrated POS so you are not reconciling two systems
- Visible application status and responsive support
- Transparent chargeback and dispute tools
How Simple prices it
Simple charges a flat 2.19% on card-present transactions — tap, dip, or swipe at the counter — with no per-transaction fee. Card-not-present transactions, including keyed-in, invoiced, and online payments, are 2.79%.
Software plans start at $99/month per location and include the POS, inventory, invoicing, appointments, loyalty, and more. There is no separate merchant account to apply for, no gateway fee, no statement fee, and no long-term contract.
See the full plan breakdown on the pricing page, or read more about how the rate works under payment processing. If the terminology is new, start with our plain-English guide to what merchant services include, or see the full merchant services offering and the point of sale that runs on the same account.
Frequently asked questions
Most small businesses in the U.S. pay between 2.5% and 3.5% of each card sale, plus a fixed per-transaction fee of 10¢ to 30¢. On a typical $25 card-present sale, the combined cost usually pushes the real rate above 3%.
Yes. The major flat-rate POS providers generally publish in-person rates between 2.5% and 2.9%, most with an added per-transaction fee. A flat 2.19% with no per-transaction fee is below that range and removes the fixed-fee penalty on small tickets.
Divide your total processing fees by your total card sales volume, then multiply by 100. For example, $847 in fees on $28,500 in card sales equals an effective rate of 2.97%. That number is what matters, not the headline rate on the sales page.
A fixed per-transaction fee eats a larger percentage of a small sale. A 10 cent fee is 1.25% of an $8 sale but only 0.17% of a $60 sale. The lower your average ticket, the more a fixed fee drags your effective rate up.
Flat rate is usually better for small businesses that want predictable costs and do not have time to audit statements. Interchange plus can save money for very high-volume operators, but the rate fluctuates and takes effort to verify.
Watch for monthly minimums, statement fees, PCI compliance fees, batch fees, gateway fees, and early-termination fees. Some providers also pad assessments or reclassify transactions into more expensive tiers. Ask for the all-in effective rate before signing.
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