Credit cards dominate consumer spending in North America. In the United States in early 2026, there are about 642 million active credit card accounts and roughly 827 million cards in circulation, with approximately 82% of adults holding at least one credit card. The average U.S. cardholder carries nearly four cards, giving consumers meaningful choice over which card, and which rewards tier, they use at checkout.
Canada shows a similar pattern at a smaller scale. There are around 78 million credit cards in circulation across a population of roughly 40 million people, and credit card penetration among adults is estimated to be above 85%. As in the U.S., rewards cards account for the majority of active cards and spending.
Because of that choice, not all credit cards cost the same for merchants to accept. Two transactions for the same dollar amount can carry meaningfully different processing costs based solely on the tier of card used, even when everything else looks identical at checkout.
This article explains how credit card tiers actually work from a merchant pricing perspective, how common each tier is in Canada and the U.S., and why premium cards quietly push blended processing rates higher over time.
What “Credit Card Tiers” Mean for Merchants
Before getting into costs, it helps to clarify what card tiers actually are. From a merchant standpoint, tiers are not marketing labels or visual designs, they are network-defined product categories that determine interchange.
When a card is used, the network identifies its tier and applies a specific interchange rate. This applies across Visa, Mastercard, and American Express.
For consumer credit cards, merchants can think in three practical tiers:
- Standard (non-rewards) consumer cards
- Rewards consumer cards
- Premium rewards consumer cards
Each tier generally carries a higher cost than the one below it.
Market Stats on North America Credit Card Tiers
Before looking at individual merchant statements, it helps to understand how credit card usage is distributed across tiers in the broader market. While card networks and issuers do not publish a single, unified breakdown by tier, publicly available data allows us to establish a reliable market baseline for Canada and the U.S.
The key takeaway is simple: rewards cards dominate, and premium cards represent a meaningful share of total spending even if they are fewer by count.
Estimated 2026 consumer credit card concentration, North America
| Card tier | Share of cards (by count) | Share of spend (by value) | Merchant cost impact |
|---|---|---|---|
| Standard, non-rewards | ~25% | <10% | Lowest consumer interchange |
| Rewards, mid-tier | ~45–55% | ~45–55% | Mid-range interchange |
| Premium rewards | ~20–30% | ~30–45% | Highest consumer interchange |
These ranges reflect aggregated public data on rewards adoption and spending behavior, combined with real-world merchant reporting. Exact percentages vary by industry, channel, and customer demographics, but the direction is consistent across North America.
Estimated 2026 credit card tier mix by industry
| Industry | Standard cards | Rewards (mid-tier) | Premium rewards | Why it looks this way |
|---|---|---|---|---|
| Grocery and discount retail | 35–45% | 40–50% | 10–20% | Price-sensitive spend, higher debit usage |
| General retail | 25–35% | 40–50% | 20–30% | Mixed demographics and ticket sizes |
| Restaurants and dining | 15–25% | 40–50% | 30–40% | Dining is a common bonus category |
| Ecommerce (consumer) | 15–25% | 35–45% | 30–45% | Affluent customers, rewards optimization |
| Travel and hospitality | 10–20% | 30–40% | 40–55% | Travel rewards heavily favor premium cards |
| Professional services | 20–30% | 35–45% | 25–40% | Higher income customers and larger tickets |
| Healthcare (consumer pay) | 30–40% | 40–50% | 10–20% | Mixed insurance and consumer payments |
| Subscription and SaaS (consumer) | 15–25% | 40–50% | 25–35% | Recurring spend on rewards cards |
Percentages are indicative ranges based on aggregated merchant reporting and publicly observed consumer spending behavior. Individual merchant results can vary significantly.
Tier 1: Standard Consumer Credit Cards
Standard cards are the historical baseline for consumer credit. While they still exist, they are steadily becoming less relevant to most merchants.
What they are
Standard cards typically offer limited or no rewards. They are basic consumer products and are often issued to lower-spend or credit-building customers.
How common they are
Standard cards now make up a shrinking share of consumer credit cards by both count and spend. Issuers have strong incentives to move customers into rewards products, and most active spend has already shifted upward.
Merchant cost impact
These cards usually carry the lowest consumer interchange rates within a network. When merchants see more standard cards in their mix, blended rates tend to be lower.
For most merchants today, however, standard cards are no longer representative of typical customer behavior.
Tier 2: Rewards Consumer Credit Cards
Rewards cards form the backbone of modern consumer card usage. Understanding this tier is critical because it represents the default card experience for most customers.
What they are
Rewards cards offer cash back, points, or co-branded benefits. This tier includes a wide range of everyday consumer products issued by major banks and retailers.
How common they are
Rewards cards dominate consumer credit usage in both Canada and the U.S.:
- Roughly three quarters of consumer credit cards are rewards cards by count
- Over 90% of consumer credit card spending flows through rewards cards
For merchants, this means rewards cards are not a premium edge case, they are the norm.
Merchant cost impact
Rewards cards generally cost more to accept than standard cards. The higher interchange helps fund cardholder rewards and issuer programs.
Small shifts within this tier, such as customers moving from basic rewards to higher earn rates, can already move a merchant’s blended rate.
Tier 3: Premium Rewards Credit Cards
Premium cards sit at the top of the consumer rewards hierarchy and are the most important tier for understanding why merchant fees rise over time.
What they are
Premium cards offer enhanced benefits such as travel rewards, lounge access, insurance coverage, and accelerated earning. Common examples include:
| Network | Canada, premium consumer tiers | United States, premium consumer tiers | Merchant notes |
|---|---|---|---|
| Visa | Infinite, Infinite Privilege | Signature, Infinite | Visa Signature is common in the U.S. but rare in Canada. Infinite tiers dominate Canadian premium spend. |
| Mastercard | World Elite | World, World Elite | World Elite is the primary premium tier in Canada, while World and World Elite both price as premium in the U.S. |
| American Express | Gold, Platinum | Gold, Platinum, premium co-brand cards | Amex premium pricing is common in both countries and often higher than network-branded consumer cards. |
“Premium” is defined by the network’s product classification, not by whether a card is metal or carries an annual fee.
How common they are
Premium cards are a subset of rewards cards, but they account for a disproportionately large share of spend.
They tend to appear more often in:
- Travel and hospitality
- Restaurants and dining
- Ecommerce brands with higher-income customers
- Professional and personal services with larger ticket sizes
For many merchants, premium cards represent 25% to 50% of total card volume by dollars, even if they are fewer transactions.
Merchant cost impact
Premium cards usually carry the highest consumer interchange rates. The step-up from mid-tier rewards cards is often material, commonly in the range of 0.30% to 0.70%, depending on network, region, and transaction qualification.
This tier is the single largest contributor to rising blended processing costs for many merchants.
Why Premium Cards Increase Processing Rates
Merchants often feel their processing rate “creeping up” even when their processor has not changed pricing. The reason is almost always card mix.
As customers shift more spending onto premium cards, average interchange rises automatically.
Simple example
- Monthly card volume: $100,000
- Premium cards cost 0.50% more than mid-tier rewards cards
- Premium share of volume: 40%
Incremental cost from premium mix:
$100,000 × 40% × 0.50% = $200 per month, $2,400 per year
At $1,000,000 per month, the same mix adds $24,000 per year.
This change happens silently, without any action by the merchant.
Card Tiers Compared to Other Cost Drivers
Card tier is not the only factor in pricing, but it is one of the most consistent and least understood.
Other contributors include:
- Entry method, chip & PIN, tap, ecommerce, keyed
- Qualification quality and data completeness
- Commercial and corporate card usage
- Network assessment and brand fees
That said, premium consumer cards are often the largest hidden driver of higher blended rates for retail and ecommerce merchants.
What Merchants Can and Cannot Control
Merchants cannot choose which consumer card tier a customer uses. However, they can manage the financial impact.
Key actions include:
- Tracking premium share monthly by network and channel
- Using interchange-plus pricing to make tier costs visible
- Improving transaction qualification to avoid unnecessary downgrades
- Segmenting reporting, premium share is often higher online than in-store
- Forecasting costs, premium adoption is a long-term trend
Merchants who measure card mix consistently are far less likely to be surprised by fee increases.
Key Takeaways for Merchants
Understanding card tiers changes how you think about processing costs.
- Standard cards are now a minority
- Rewards cards dominate consumer spending
- Premium cards drive a disproportionate share of volume
- Premium tiers carry higher interchange
- Rising costs are often driven by customer behavior, not processor markup
Once you see your tier mix clearly, pricing discussions become much more grounded and productive.
