Peptide merchants pay 3 fee types on every card transaction: interchange (1.15% to 2.4%, paid to the issuing bank), assessment (0.13% to 0.15%, paid to Visa or Mastercard), and processor markup (0.2% to 1.5% plus per-transaction). A blended effective rate of 2.4% to 2.9% is healthy for a peptide MID; anything above 3.1% means you are overpaying.
What is interchange and why does it dominate your bill?
Interchange is the wholesale per-transaction fee the cardholder's bank charges your acquirer. It ranges from 1.15% on a regulated debit card to 2.4% on a rewards credit card and is set by Visa and Mastercard, not negotiable by your processor. Interchange typically accounts for 70% to 80% of the total fee you pay on every transaction. Read the full interchange breakdown before your next pricing review.
What are assessment fees?
Assessment fees are paid to the card networks (Visa and Mastercard) and run 0.13% to 0.15% per transaction. They are fixed, non-negotiable, and identical at every processor. Any processor presenting a statement that bundles assessment into a single rate is hiding the line item to obscure the markup.
What is processor markup and where is it hidden on flat-rate statements?
Processor markup is the only negotiable component. Interchange-plus pricing exposes it as a fixed basis-point spread (typically 0.2% to 0.5% for peptide MIDs). Flat-rate processors like Stripe and Square bundle interchange, assessment, and markup into one 2.9% to 3.9% number, which hides a 0.6% to 1.4% markup on the average transaction. On $100,000 monthly peptide volume, switching from flat-rate 2.9% to interchange-plus at 2.5% effective saves $4,800 annually.
What does a healthy peptide MID statement look like?
| Line item | Typical | Red flag |
|---|---|---|
| Interchange | 1.65% to 2.10% | Over 2.30% effective |
| Assessment | 0.13% to 0.15% | Bundled into rate |
| Processor markup | 0.20% to 0.50% | Over 0.75% |
| Per-transaction | $0.05 to $0.15 | Over $0.25 |
| Monthly account fee | $25 to $75 | Over $100 |
| PCI fee | $0 to $15 | Over $25 |
How do you lower your effective rate?
Three levers reliably move your blended rate down 20 to 60 basis points. First, enable 3D Secure 2.0 on every card-not-present transaction to qualify for lower interchange. Second, route business cards through Level 2 data submission. Third, audit your statement quarterly and renegotiate the markup at the 12-month mark when your processing history strengthens. Each lever builds on the high-risk underwriting standards your acquirer uses.
Frequently asked questions
Why is my effective rate higher than the quoted rate?
Because the quoted rate excludes per-transaction fees, monthly fees, PCI fees, and statement fees. Effective rate is total fees divided by total volume.
Does ACH have interchange?
No. ACH costs 0.5% to 1.5% per transaction with no interchange, no assessment, and no card network involvement.
Can I pass card fees on to customers?
Surcharging is legal in most US states with a 3% cap and clear disclosure. Peptide MCCs are not surcharge-prohibited.
Read this alongside how payment processing actually works step by step for the end-to-end picture.
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