What is the typical transaction fee charged to suppliers for card purchases?

The typical transaction fee charged to suppliers for card purchases generally falls within the range of 2% to 2.5%. This fee is applied to cover the costs associated with processing credit card payments, including interchange fees and processing network fees.

This range of transaction fees aligns with industry standards and reflects the general costs that suppliers incur when accepting card payments. Suppliers must factor these fees into their pricing structures as they impact their profit margins. These handling fees can vary depending on the type of card used (e.g., corporate credit cards often have higher fees due to the added benefits they provide to users).

Other fee ranges, such as the 1% to 1.5% or the 3% to 3.5%, do not accurately reflect the common transaction costs in the marketplace. A fee below 2% would be considered quite low for card transactions, while a fee above 3.5% would be on the higher end, which could deter suppliers from accepting card payments altogether due to reduced profitability. Therefore, the range of 2% to 2.5% is a practical and realistic representation of the fees suppliers generally experience in card transactions.