You started a business in the DMV because you're good at what you do — cooking, fixing cars, running a shop, providing a service. You didn't start a business to become an expert in credit card processing.
But processing is one of your biggest monthly expenses, and most business owners in DC, Maryland, and Virginia are paying more than they should. This guide will get you up to speed in about 7 minutes.
How Credit Card Processing Actually Works
When a customer swipes their card at your business, four things happen in about two seconds:
1. The card network (Visa/Mastercard) routes the transaction. 2. The customer's bank approves it. 3. Your processor moves the money. 4. Everyone takes their cut.
The “cut” is what you see on your statement. It's usually 2–3.5% of each transaction, split between the card-issuing bank (interchange), the card network (assessment), and your processor (markup).
The Three Pricing Models You'll See
Flat rate (Square, Stripe) — same rate on every transaction. Simple but expensive at scale.
Tiered (most legacy processors) — your transactions are sorted into “qualified” and “non-qualified” buckets. Confusing, opaque, usually expensive.
Interchange-plus — you pay the actual interchange cost plus a fixed markup. Most transparent, usually cheapest for established businesses.
What DMV Businesses Should Know
Being local matters. When your terminal goes down during a Saturday rush at your Bethesda shop or your Adams Morgan restaurant, you need someone who answers the phone — not a bot.
That's one of the reasons we started PAYHERO right here in the DMV. We serve businesses across DC, Maryland, and Virginia with transparent pricing and real human support.
What to Do Right Now
Pull up your last processing statement. Find your total volume and total fees. Divide fees by volume. If that number is above 2.5%, you have room to save. Upload your statement to our free analyzer and we'll show you exactly how much.