How to Reduce Payment Processing Fees

Payment processing fees depend on how a payment is taken, what kind of card or account it comes from, and which processor you use. To pay less, first work out your effective rate, which is your total fees divided by the total amount you processed. Then look at where the extra cost comes from: cards typed in by hand, international cards, currency conversion, disputes, and large invoices paid by card that could be paid by bank. What any change saves depends on your own mix of payments and your processor's rates.

Billed publishes this page. Fees are quoted from Stripe's US pricing page as one processor's example, opened on October 30, 2026. For market-wide figures, see payment processing statistics.

What makes up a fee

Processors publish their own prices, and those prices differ by country and by how the payment is taken. As an example, Stripe's US pricing page lists:

• Online cards: "2.9% + 30¢" "per successful transaction for domestic cards".
• Cards typed in by hand: "+ 0.5%" "for manually entered cards".
• International cards: "+ 1.5%" "for international cards".
• Currency conversion: "+ 1%" "if currency conversion is required".
• In-person cards: "2.7% + 5¢" "per successful transaction for domestic cards".
• Bank debits: "0.8%" for "ACH Direct Debit", with a "$5.00 cap".
• Disputes: a "Dispute received fee" of "$15.00" "for each dispute you receive."

Other processors publish their own pricing pages. Compare them for your country and your mix of payments.

Step 1: work out your effective rate

Effective rate = total fees ÷ total amount processed. Work it out each month from your processor's statement, and separately for online, in-person and typed-in payments, because they're priced differently. A rising effective rate tells you where to look.

Step 2: lower the cost of each payment

• Take cards in person where you can. At Stripe's US rates above, in-person domestic cards cost less than online ones. See the guide to mobile payments.
• Avoid typing card numbers in by hand. Send a payment link or an invoice with a pay button, so the customer enters their own card.
• Offer bank payment for large invoices. A percentage fee grows with the invoice, while Stripe's ACH Direct Debit fee is capped. See what an ACH payment is and FedNow vs. RTP vs. ACH.
• Invoice in your customer's currency only when you need to. Currency conversion can add its own fee.
• Prevent disputes. Use a clear business name on card statements, send receipts, and answer billing questions quickly.

Step 3: check how debit cards are routed (US)

The Federal Reserve's Regulation II page (last updated May 17, 2024) says the rule prohibits issuers and networks "from inhibiting a merchant's ability to direct the routing of a debit transaction over any network that the issuer has enabled to process it." Ask your processor how it routes debit card payments and whether you have a choice.

Step 4: compare and ask

Compare your processor's published rates with others for your country, using your own effective rate and payment mix. If you add a surcharge or a fee for paying by card, check the rules where you operate and your processor's terms first.

Worked example: one $5,000 invoice, three ways to pay

The figures here are a sample, using Stripe's listed US rates on October 30, 2026. A consultant sends a $5,000.00 invoice to a US business client.

1. Paid online by domestic card: 2.9% × $5,000.00 + $0.30 = $145.00 + $0.30 = $145.30.
2. The same card, typed in by hand: (2.9% + 0.5%) × $5,000.00 + $0.30 = $170.00 + $0.30 = $170.30.
3. Paid by ACH Direct Debit: 0.8% × $5,000.00 = $40.00, which is above the $5.00 cap, so the fee is $5.00.

On this invoice, the fee ranges from $5.00 to $170.30 depending on how the client pays. Your own rates and results depend on your processor, your country and your customers.

Where Billed fits

Billed's accept payments page says: "Billed charges you nothing to accept online payments with Stripe."

Related Articles

• Payment Processing Statistics
• What Is Payment Processing?
• What Is an ACH Payment?
• Guide to Mobile Payments
• FedNow vs. RTP vs. ACH

Frequently Asked Questions

What is an effective rate?

It's your total processing fees divided by the total amount you processed in the same period. Work it out separately for online, in-person and typed-in payments.

Why do typed-in card payments cost more?

Processors can price them differently. Stripe's US pricing page, for example, lists an extra 0.5% for manually entered cards on top of its online card rate.

Is ACH cheaper than a card for a large invoice?

It can be. On Stripe's listed US rates on October 30, 2026, a $5,000.00 invoice cost $145.30 by online domestic card and $5.00 by ACH Direct Debit, because the ACH fee is capped at $5.00. Check your own processor's rates.

Can I pass processing fees on to customers?

Rules on surcharges and card fees vary by place and by your processor's terms. Check the rules where you operate and your processor's terms before you add one.

Does Billed add its own fee to card payments?

Billed's accept payments page says: "There is no hidden fee, Billed charges you nothing to accept online payments with Stripe."