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Effective Rate Calculator

Louis Ramirez • December 19, 2023

What is an Effective Rate

The effective rate is the total percentage you pay per transaction for credit card processing, taking into account all the fees involved.


Instead of just looking at individual fees, it's important to consider this overall percentage to understand the true cost of credit card processing.   


For a regular, low-risk business, your effective rate should be about 3-4% — and no higher.


 If you’re already accepting credit cards, you can quickly determine your actual effective rate by analyzing your most recent credit card processing statements.   


(Total monthly fees / Total monthly sales) x 100 = Effective Rate


Effective Rate Calculator

Effective Rate: 0%

Effective Rate calculator. Users can input their total sales and credit card fees, and upon clicking the 'Calculate Effective Rate' button, the calculator will display the effective rate as a percentage
Basis Point Calculator

Understanding transaction fees is crucial. Interchange fees go to the issuing bank, while assessment fees are paid to credit card companies. Distinguishing between these components helps manage processing costs effectively.


Understanding the breakdown of transaction fees can be complex, but it's important to distinguish between interchange fees, assessment fees, and basis points. Many people confuse interchange fees and assessment fees, assuming they are the same, but they are actually different components of the wholesale cost of card processing. While interchange fees are paid to the card's issuing bank, assessment fees are paid to the credit card associations. Both are part of your processor's cost of doing business, and it's essential to comprehend these distinctions to effectively manage your payment processing expenses.


How It Works: Calculator will shows net amount after fees, sale price difference, and Basis Points value. Enter values, click "Calculate" to see results.

Credit Card Cost Calculator

Net Amount After Fees: $0.00

Difference (Sale Price - Net Amount): $0.00

Dollar Value of Basis Points: $0.00

Basis Point Calculator
Interchange + Assessment Fee + Transaction

How It Works: calculator that can calculate and display the net amount after fees, the difference between the sale price and the net amount, and the dollar value of the Basis Points of the Sale Price. Users can input the required values, and upon clicking the "Calculate" button, they will see all the calculated amounts.


Sale Price of product or Service:

          Enter a Dollar Value

Interchange, Assessment Fee, and Basis Points Inputs: These fields allow the user to enter the respective percentages and decimal values.

Cost Per Transaction Input: This is where the user enters the base cost of the product or service.

Calculation Button: When clicked, the script calculates the total percentage by adding the Interchange, Assessment Fee, and Basis Points (converted to a percentage). It then applies this total percentage to the Cost Per Transaction to calculate the Total Cost.


Total Cost Display:

The result displayed under the 'Total Cost'

  • Net Amount: Deposit to Merchant after fees deducted
  • Interchange Fees: Wholesale Cost of Accepting Credit Card ( Interchange will vary by Card type )
  • Profit made by a Processor for facilitating the transaction
     


October 2023 – Updated Consumer Credit Interchange Fee Programs   Chase Website  LINK

Effective October 13, 2023, Visa will update their consumer credit interchange fee programs as follows. Credit voucher transactions will continue to qualify for existing rates in the U.S. Credit Voucher fee program.

 

Table 1 – New Fee Names for Visa Service Station and Government Small Ticket Updated Interchange Rates

New Fee Name

Rate

Visa CPS Small Ticket Trad Rewards Sign - Fuel Gov

1.65% + $0.04

Visa CPS Small Ticket Inf SNQ - Fuel Gov

1.65% + $0.04

 

Table 2 – New Fee Names for Visa Supermarket Updated Interchange Rates

New Fee Name

Rate

Visa CPS Supermarket Signature

1.65% + $0.07

Visa CPS SmallTicket Supermarket-Sign

1.65% + $0.07

Visa CPS Supermarket Infinite Spend Not Qualified

1.65% + $0.07

Visa CPS SmallTicket Supermarket-Infinite Spnd Not Qual

1.65% + $0.07

 

Table 3 – New Fee Names Visa Small Ticket Updated Interchange Rates

New Fee Name

Rate

Visa CPS Small Ticket Signature MIN

$0.04

Visa CPS Small Ticket Signature

2.20%

Visa CPS Small Ticket Infinite SNQ MIN

$0.04

Visa CPS Small Ticket Infinite SNQ

2.20%

 

Table 4 – New Fee Names Visa Telecommunications & Cable Updated Interchange Rates

New Fee Name

Rate

Visa CPS Tele/Cable Trad Rewards Sign

1.43% + $0.05

Visa CPS Tele/Cable Infinite SNQ

1.43% + $0.05

Visa CPS Tele/Cable Inf SNQ Non-Token CNP

1.53% + $0.05

 

Table 5 – New Fee Names Visa Insurance Updated Interchange Rates

New Fee Name

Rate

Visa CPS Insurance Signature

1.43% + $0.05

Visa CPS Insurance Infinite SNQ

1.43% + $0.05

Visa CPS Insurance Signature Non-Token CNP

1.53% + $0.05

Visa CPS Insurance Infinite SNQ Non-Token CNP

1.53% + $0.05

           

Table 6 – New Fee Names Visa Services Updated Interchange Rates

New Fee Name

Rate

Visa CPS Services Signature

1.85% + $0.10

Visa CPS Services Infinite SNQ

1.85% + $0.10

Visa CPS Services Signature Non-Token CNP

1.95% + $0.10

Visa CPS Services Infinite SNQ Non-Token CNP

1.95% + $0.10

 

Table 7 – New Fee Names Visa Education Updated Interchange Rates

New Fee Name

Rate

Visa CPS Education Signature

1.43% + $0.05

Visa CPS Education Infinite SNQ

1.43% + $0.05

Visa CPS Education Signature Non-Token CNP

1.53% + $0.05

Visa CPS Education Infinite SNQ Non-Token CNP

1.53% + $0.05

 

Table 8 – New Fee Names Visa Healthcare Updated Interchange Rates

New Fee Name

Rate

Visa CPS Healthcare Signature

1.43% + $0.05

Visa CPS Healthcare Infinite SNQ

1.43% + $0.05

Visa CPS Healthcare Signature Non-Token CNP

1.53% + $0.05

Visa CPS Healthcare Infinite SNQ Non-Token CNP

1.53% + $0.05

 

Table 9 – New Fee Names Visa Real Estate Updated Interchange Rates

New Fee Name

Rate

Visa CPS Real Estate Signature

1.43% + $0.05

Visa CPS Real Estate Infinite SNQ

1.43% + $0.05

Visa CPS Real Estate Signature Non-Token CNP

1.53% + $0.05

Visa CPS Real Estate Infinite SNQ Non-Token CNP

1.53% + $0.05

 

Table 10 – New Fee Names Visa Advertising Updated Interchange Rates

New Fee Name

Rate

Visa CPS Advertising Signature

1.75% + $0.10

Visa CPS Advertising Infinite SNQ

1.75% + $0.10

Visa CPS Advertising Signature Non-Token CNP

1.85% + $0.10

Visa CPS Advertising Infinite SNQ Non-Token CNP

1.85% + $0.10

 

Table 11 – New Fee Names Visa Taxi Updated Interchange Rates

New Fee Name

Rate

Visa CPS CNP Taxi Signature / Preferred MIN

$0.08

Visa CPS CNP Taxi Signature / Preferred

2.70%

Visa CPS CNP Taxi Infinite SNQ MIN

$0.08

Visa CPS CNP Taxi Infinite SNQ

2.70%

Visa CPS CP Taxi Signature / Preferred MIN

$0.04

Visa CPS CP Taxi Signature / Preferred

2.60%

Visa CPS CP Taxi Infinite SNQ MIN

$0.04

Visa CPS CP Taxi Infinite SNQ

2.60%

 

Table 12 – New Fee Names Visa Restaurant Updated Interchange Rates

New Fee Name

Rate

Visa CPS CNP Restaurant Signature / Preferred MIN

$0.08

Visa CPS CNP Restaurant Signature / Preferred

2.70%

Visa CPS CNP Restaurant Infinite SNQ MIN

$0.08

Visa CPS CNP Restaurant Infinite SNQ

2.70%

Visa CPS CP Restaurant Signature / Preferred MIN

$0.04

Visa CPS CP Restaurant Signature / Preferred

2.60%

Visa CPS CP Restaurant Infinite SNQ MIN

$0.04

Visa CPS CP Restaurant Infinite SNQ

2.60%

 

Table 13 – New Fee Names Visa Small Merchant Product 1 and 2 Updated Interchange Rates

New Fee Name

Rate

Visa CPS Small Merchant Product 1 Signature CNP

1.73% + $0.10

Visa CPS Small Merchant Product 1 Infinite SNQ CNP

1.73% + $0.10

Visa CPS Small Merchant Product 2 Signature CP

1.43% + $0.10

Visa CPS Small Merchant Product 2 Infinite SNQ CP

1.43% + $0.10

 

Table 14 – New Rates and Fee Names Visa Performance Threshold Supermarket Tier 0 and Tier 1 Updated Interchange Rates

New Fee Name

Current Rate

New Rate

Visa Supermarket Tier 0 Traditional/Traditional Rewards

1.15% + $0.05

1.18% + $0.05

Visa Supermarket Tier 0 Signature/Infinite SNQ

1.40% + $0.05

1.55% + $0.05

Visa Supermarket Tier 0 Signature Pref/Infinite SQ

1.40% + $0.05

1.65% + $0.05

Visa Supermarket Tier 1 Traditional/Traditional Rewards

1.15% + $0.05

1.20% + $0.05

Visa Supermarket Tier 1 Signature/Infinite Spnd Not Qual

1.50% + $0.05

1.55% + $0.05

Visa Supermarket Tier 1 - Signature Pref/Infinite Spnd Qual

1.55% + $0.05

1.65% + $0.05

 

Table 15 – New Rates and Fee Names Visa Travel Updated Interchange Rates

New Fee Name

Current Rate

New Rate

Visa CPS Travel Signature

2.25% + $0.10

2.25% + $0.10

Visa CPS Travel Infinite SNQ

2.25% + $0.10

2.25% + $0.10

Visa CPS Travel Infinite SQ

2.40% + $0.10

2.55% + $0.10

 

Table 16 – New Rates and Fee Names Visa Product 1 and 2 Updated Interchange Rates

New Fee Name

Current Rate

New Rate

Visa CPS Product 2 Signature CP

1.65% + $0.10

No change

Visa CPS Product 2 Infinite SNQ CP

1.65% + $0.10

1.90% + $0.10

Visa CPS Product 2 Infinite SQ CP

2.10% + $0.10

2.30% + $0.10

Visa CPS Product 1 Signature CNP

2.05% + $0.10

2.05% + $0.10

Visa CPS Product 1 Infinite SNQ CNP

2.05% + $0.10

2.20% + $0.10

Visa CPS Product 1 Infinite SQ CNP

2.50% + $0.10

2.60% + $0.10

Visa CPS Product 1 Signature Token CNP

1.95% + $0.10

1.95% + $0.10

Visa CPS Product 1 Infinite SNQ Token CNP

1.95% + $0.10

2.10% + $0.10

Visa CPS Product 1 Infinite SQ Token CNP

2.40% + $0.10

2.50% + $0.10

 

Table 17 – New Rates and Fee Names Visa Performance Threshold Retail Tier 1, 2, and 3 Updated Interchange Rates

New Fee Name

Current Rate

New Rate

Visa CPS Retail Tier 1 Signature

1.65% + $0.10

1.65% + $0.10

Visa CPS Retail Tier 1 Infinite SpndNtQual

1.65% + $0.10

1.90% + $0.10

Visa CPS Retail Tier 1 SignaturePref

2.10% + $0.10

2.10% + $0.10

Visa CPS Retail Tier 1 Infinite SpndQual

2.10% + $0.10

2.30% + $0.10

Visa CPS Retail Tier 2 Signature

1.65% + $0.10

1.65% + $0.10

Visa CPS Retail Tier 2 Infinite SpndNtQual

1.65% + $0.10

1.90% + $0.10

Visa CPS Retail Tier 2 SignaturePref

2.10% + $0.10

2.10% + $0.10

Visa CPS Retail Tier 2 Infinite SpndQual

2.10% + $0.10

2.30% + $0.10

Visa CPS Retail Tier 3 Signature

1.65% + $0.10

1.65% + $0.10

Visa CPS Retail Tier 3 Infinite SpndNtQual

1.65% + $0.10

1.90% + $0.10

Visa CPS Retail Tier 3 SignaturePref

2.10% + $0.10

2.10% + $0.10

Visa CPS Retail Tier 3 Infinite SpndQual

2.10% + $0.10

2.30% + $0.10

 

P2023.0599; P2023.0600; P2023.1081; P2023.1081a; P2023.1081b

Published September 15, 2023


A purple credit card is surrounded by speech bubbles and icons.
Basis Point Calculator


Sale Price 

 Enter Average Price of product sold



+ Interchange  %



+ Assessment Fee %



+  Basis Points Inputs  Decimal



+ Cost Per Transaction Input:  $


Calculate Button


  • $ Deposited to Your Bank


  • Interchange Total = $  V/MC/D/AMX


  • Profit made by a Processor

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