Payment Processing Fee: Everything You Need to Know

Payment Processing Fee: Everything You Need to Know 

Carrying cash around with you for every single transaction that you would make was so annoying. It would become absolutely unbearable when you were making a large transaction and had to carry bags of money with you. 

Apart from the inconvenience associated with it, it was also extremely insecure. Well, now you don’t have to deal with these issues, and life is much easier because you can make every transaction online very easily. 

Buying and selling things is just one click away now. Whether it’s you who is getting paid or you want for someone else or something else, the transactions are so much easier that you can now put them on schedule and sleep like a baby.

However, online transaction systems are not free from complications. On the one hand, they make things easier for you, but on the other hand, they might be more expensive in terms of monetary expense. 

The reason for that is that every online transaction is coupled with a payment processing fee, which is the cost that businesses and companies have to incur when processing fees from their customers. 

The Amount of Processing Fee:

How much processing fee does a merchant have to pay? Well, that depends upon a couple of things, such as:

  • The level of risk of the transaction
  • The nature and type of your credit or debit card
  • The pricing model is preferred by specific payment processors.

This makes it very complicated because the processing fee is not the same for everyone and every transaction, even if it’s the exact same transaction by two people using different cards. 

If one person pays for something by physically swiping at a payment terminal, there would be less payment processing fee compared to someone who makes the same transaction via phone or e-commerce. 

You may want to know if there is a way in which you can reduce your payment processing fee. Yes, companies like nordex solutions help people and merchants reduce their processing fees up to about 25% or even more. 

How to Calculate Payment Processing Fee?

While the amount of processing fee is not the same for all, it follows a general formula for all transactions. If you have a credit card for which you want to calculate your processing fee, follow the following steps:

  • Download your credit card statement from the card that you are using or through any other procedure, depending on your company.
  • Divide the total deducted amount for processing by your total monthly sales via credit card.
  • The result of the equation would show your effective rate, which is the total amount your credit card is getting charged. 


The online transactions that you make through your credit card, as well as offline transactions via credit cards, are not free. There is a certain fee known as a payment processing fee that you have to pay. However, you can reduce the processing fee, such as by acquiring the services of companies like Nordex Solutions

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