U.S. Merchants Pay Highest Acceptance Costs in 2025

Bottom Line

In 2024, U.S. credit card companies earned a record $148.5 billion from processing fees charged to merchants, with total payment acceptance costs expected to rise further in 2025. U.S. merchants pay the highest card acceptance fees globally, with interchange fees ranging from 1.8% to 8%  per transaction. The amount a business pays depends heavily on its size, industry, transaction type, and payment mix.

The U.S. Leads the World in Processing Costs

Record-Breaking Numbers for 2024–2025

U.S. merchants pay the world’s highest card acceptance costs. Industry-wide, estimated total merchant card processing fees are up to $172 billion per year, with interchange accounting for a significant portion of this figure. For a breakdown of payment processing fees, read here.

Typical Processing Costs by Business Size:

• Small businesses ($100K-$250K annually): 2.9% – 4.2% per transaction
• Medium businesses ($250K-$1M annually): 2.5% – 3.5% per transaction
• Large businesses ($1M+ annually): 1.8% – 2.8% per transaction

Why Are Costs Rising?

• E-commerce Growth: Mobile and online payments now account for nearly half of U.S. e-commerce sales, and fraud risk drives up transaction costs.

• Mobile Commerce: Mobile commerce is projected to reach $900 billion by 2025, accounting for nearly 50% of total sales.

• Expensive Payment Methods: “Buy Now, Pay Later” (BNPL) solutions can charge fees of 3.5% or higher per transaction, making them among the most expensive options for merchants.

• Limited Regulation & Competition: The U.S. has fewer price controls and less interchange regulation than markets like the European Union or Australia, pushing up overall merchant costs.

• Premium/Rewards Cards: High rewards payouts mean higher interchange fees for merchants accepting top-tier cards.

Solutions and Cost Reduction Strategies

Immediate Actions:

• Choose a payment processor that uses transparent interchange-plus pricing and no junk fees

• Use fee-based, consumer-pay options – learn more here.

• Encourage card-present (in-person) transactions.

• Implement dual pricing strategies

• Audit statements for excessive or hidden fees.

Technology Solutions:

• Use payment gateways that optimize network routing and provide advanced analytics.

• Automation can lower failed transaction fees and improve approval rates.

Frequently Asked Questions (FAQ)

Q: Why are U.S. merchant processing costs higher than other countries?
A: The U.S. market has limited network competition, less regulatory price control, and widespread use of premium rewards cards with higher interchange fees.

Q: How much do processing fees typically cost U.S. merchants in 2025?
A: Typical Processing Rates by Business Size:

• Small businesses ($100K-$250K annually): 2.9% – 4.2% per transaction
• Medium businesses ($250K-$1M annually): 2.5% – 3.5% per transaction
• Large businesses ($1M+ annually): 1.8% – 2.8% per transaction

Q: Can merchants negotiate lower interchange rates?
A: Interchange rates and certain fees are set by card networks and are non-negotiable; merchants may only negotiate processor markups.

Q: How has mobile commerce affected costs?
A: Mobile/online transactions have higher fraud risk, which results in higher fees—often up to 3.5% per transaction for remote and ecommerce sales.

Q: When are interchange rates changed?
A: Interchange rates are typically updated twice per year, in spring and fall.

Q: What should merchants do to reduce processing costs?
A: Opt for transparent interchange plus pricing models, implement fee-based, consumer-pay options, and use processors with their own gateways. Some subscription-based payment processors charge higher fees or additional fees for services such as next-business-day funding or ACH processing. Well-known payment facilitators, such as Stripe, can charge higher fees in exchange for the convenience of not having to apply for a merchant account.   Read more about the advantages of merchant accounts here and here.

About IntelliPay

We help merchants optimize their payment processing through transparent interchange-plus pricing, no hidden fees, expert guidance, and reliable technology solutions. Our team combines deep industry knowledge with personalized service to ensure every client gets the best possible payment processing solution for their business.

The information provided on this page is for educational and informational purposes only. We make no representations or warranties regarding the completeness, accuracy, or security of this content, and all advice is provided “as is.” The content does not constitute legal, financial, or professional advice, and readers act on it at their own risk