What Is Flat-Rate Credit Card Processing?

Flat-rate credit card processing makes it easy to accept payments. Instead of juggling multiple fees for different card types, you’ll pay one consistent transaction fee for each type of sale.

In this guide, we’ll cover how flat-rate pricing works, what it costs, and when it makes sense for your business.

What Is Flat-Rate Credit Card Processing?

With flat-rate pricing, all costs — interchange fees, network fees, and some processing fees — are rolled into a single rate. You’ll pay the same fee for all transactions of the same type, whether a Visa, Mastercard, or other card is used.

Flat rate pricing is:

• One flat fee per transaction type
• Simple and predictable
• Usually offered month-to-month

Flat rate pricing isn’t:

• A single universal rate for every transaction
• Always cheaper than interchange-plus pricing

You may pay different flat rates for in-person vs. online transactions, but each rate is consistent within its category.

How Flat-Rate Card Processing Works

Flat-rate processing combines all fees into a single, simplified transaction fee. Typical rates look like this:

Here’s what this would look like in practice:

• $20 in-person transaction at 2.6% + $0.10 = $0.62 fee
• $20 online transaction at 2.9% + $0.30 = $0.88 fee

Which Payment Processors Use Flat-Rate Pricing?

Flat-rate credit card processing is most common with third-party payment processors, also called “payment service providers.” These processors typically don’t charge monthly fees and rely on transaction fees to run their business.

Some popular flat-rate processors include:

• Square
• Stripe
• PayPal

Most flat-rate processors are third-party providers. But if you want a full-service merchant account, National Processing is one of the few that offers flat-rate pricing.

What’s Included In Your Flat-Rate Fee?

Most flat-rate processors include:

• Transaction costs
• PCI compliance
• Account maintenance
• Fraud monitoring
• Some supporting software
• Gateway fees

You may still pay extra for:

• International transactions
• Currency conversion
• Advanced features or software
• Chargebacks & refunds

Flat-rate processors usually offer month-to-month contracts, so you can switch providers anytime without early termination fees.

Average Flat-Fee Processing Rates

At the time of this update, flat-rate fees range from 2.6% to 3.5% on the variable side and between $0.05 to $0.50 on the fixed fee side.

Card-present transactions (including swiped, dipped, and tapped transactions) tend to skew toward the lower end of these ranges, while online and keyed-in transactions represent the higher end of these ranges.

Are Flat-Rate Merchant Services Cheaper?

Flat-rate pricing is often more expensive than interchange-plus pricing per transaction. You’re paying for simplicity and predictability, not just the card swipe.

Here’s how it breaks down:

When To Use Flat-Rate Processing

Flat-rate processing can make sense if you:

• Own a very small or new business
• Run a side gig or seasonal business
• Want a predictable, easy-to-understand fee
• Prefer to avoid monthly account fees

Flat-rate pricing eliminates most merchant account fees, and the month-to-month setup makes it easy to switch to a full-service merchant account when your business grows.

Whether you stick with flat-rate pricing or explore other models, check out our picks for the best credit card processors for small businesses to find your best fit.