Free tool
Effective rate calculator
Your effective rate is total fees divided by total volume. It is the only number that lets you compare processors honestly.
Run your numbers.
Effective rate
3.00%
High. Worth requesting an interchange-plus quote.
Average cost per transaction
$2.00
Annualised fee spend at this volume: $28,800.
Understanding the result.
Why the headline rate misleads
Quoted rates apply to a qualifying transaction type. Your actual mix includes debit, rewards cards, corporate cards, keyed transactions and international cards, each priced differently. Add statement fees, PCI fees, batch fees and monthly minimums and the quoted rate stops describing reality.
Effective rate collapses all of that into one comparable percentage. Calculate it every month and you will see cost drift long before it becomes material.
What to do with a high number
First, check whether fixed monthly fees are distorting a low-volume month. Then look at interchange qualification: passing Level 2 and Level 3 data on commercial cards, settling within the network window, and using AVS and CVV on card-not-present transactions can each move volume into cheaper categories.
If your effective rate is above 3.5% and you are not in a high-risk vertical, request an interchange-plus quote with the full fee schedule in writing.
Questions about this calculator.
Everything the processor took: discount rate, per-transaction fees, statement and gateway fees, PCI fees, monthly minimums and chargeback fees.
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