How much do merchant account providers charge businesses for credit and debit card transactions?
Card transaction fees vary from one merchant card service provider to another. They can also vary according to the type of business you operate and the volume of your card sales. Credit card fees are based on a percentage of your overall transaction value, while debit card fees are fixed per transaction. On average, debit card transactions cost the retailer about 0.2% of the bill. Credit card transactions typically cost much more, at around 0.9%. Last summer the European Union published a plan to limit card transaction fees to 0.2% of transaction value for debit cards and 0.3% for credit cards. If the plan is successfully implemented it will not have any impact on debit card rates but it could significantly reduce rates for credit card transactions. For a better sense of what your business might pay you should ask card terminal providers for quotes based on your particular circumstances.