Invoice Fee & Payment Processing FAQ
Comprehensive answers to the most common questions about payment processor fees, invoicing, and keeping more of what you earn.
Frequently Asked Questions
Everything you need to know about invoice fees and payment processing
Understanding Payment Processing Fees
Payment processing fees are the charges that payment processors — like Stripe, PayPal, and Square — deduct from each transaction you receive. These fees typically consist of a percentage of the transaction amount (the "interchange fee") plus a small fixed fee per transaction. For freelancers, consultants, and small business owners, these fees can add up to hundreds or even thousands of dollars per year, making it essential to understand how they work and how to minimize them.
The most common fee structure in the United States is "interchange-plus" pricing, where the processor charges a base percentage (usually around 2.9% for online card payments) plus a flat per-transaction fee (typically $0.10–$0.30). Some processors, like Square, offer a single flat rate with no separate per-transaction fee, which can be advantageous for very small invoices. Understanding your processor's fee structure is the first step toward accurately pricing your services and protecting your profit margins.
Beyond the standard processing rate, there are additional costs to be aware of: international transaction surcharges, currency conversion fees, chargeback dispute fees, and fees for premium or rewards cards. Some processors also charge monthly account fees or payout fees for instant transfers. By using our free invoice fee calculator, you can quickly estimate the standard processing cost for any invoice amount and plan accordingly.