Stop Overpaying on Credit Card Fees: A 2025 Guide for Restaurants, Bars & Retailers
Let’s be real—credit card fees are one of those “hidden” costs that quietly drain your profits. For restaurants, bars, and retail shops, they often rank right up there with payroll and rent.
In 2025, most businesses are paying 1.5% to 3.5% per transaction, depending on how payments are processed and what type of cards are used. That may not sound like much, but across hundreds (or thousands) of sales a month, those fees add up fast.
Where the Money Goes
Each time a card is run, a slice of the payment is split between:
- The bank that issued the card.
- The card network (Visa, Mastercard, etc.).
- Your processor (markup).
You can’t change the first two. But that last one—the processor’s markup? That’s where you have options.
Why Your Pricing Plan Matters
If you’re using Square, Stripe, or PayPal, you’re likely on a flat-rate plan. It’s easy, but not cheap.
- Flat-rate pricing: You pay the same percentage on every sale, no matter how low-risk the transaction is.
- Interchange-plus pricing (used by Rate Tracker partners): You pay the actual cost of the transaction plus a small, transparent markup—often much lower overall.
Bottom line: A flat rate is convenient, but once your volume grows, it costs more.
5 Ways to Cut Credit Card Fees (Without Cutting Corners)
- Switch to Interchange-Plus or Dual Pricing
Transparent, scalable pricing = less waste. - Encourage Chip or Tap Payments
Card-present transactions have lower risk and lower fees. - Avoid Leasing Terminals
Terminal leases often come with hidden fees. Buy or use low-cost hardware instead. - Review Your Monthly Statements
Watch for sneaky rate hikes or added fees. Or better yet, let our Rate Tracker Software do it for you.
Make Sure Your MCC Code Is Accurate
Your Merchant Category Code affects your rates. If it’s wrong, you could be paying more than you should.
Find Out What You Are Really Paying
Use our free Rate Tracker Software to find out what you are truly paying in processing fees and how you can start saving.
