The processing fee on your statement is rarely one single number — most of it is interchange, a fee set by the card networks and paid to the cardholder's bank, and it moves depending on details you may not even notice at checkout.
Who actually sets it, and who gets it
Interchange isn't set by your payment provider — it's set by the card networks and paid to the card-issuing bank, not to your processor. Your provider's own markup is usually the smaller, more negotiable part of your total fee.
Why the same card can cost different amounts
A debit card, a rewards credit card, and a corporate card carry different interchange rates for the exact same purchase amount — rewards and corporate cards typically cost merchants more, because the issuing bank is funding those rewards from somewhere.
What actually moves your blended rate
How the transaction is entered — card-present versus online — whether it settles quickly, and even the merchant category code assigned to your business all shift which interchange tier a transaction lands in, which is why two merchants selling similar goods can see meaningfully different average costs.
Key takeaways
- Interchange is set by the card networks and paid to the issuing bank, not your processor.
- Rewards and corporate cards typically carry higher interchange than standard debit cards.
- Your processor's markup is usually the smaller, more negotiable slice of your total fee.
- Factors like transaction type and settlement speed can shift which fee tier you land in.