Although being familiar with the credit card transaction process may not seem useful to the average consumer, it actually gives you worthwhile insight into how your card works and just how many companies are really involved in your purchases. What’s more, knowledge of the credit card transaction process is extremely important for small business owners, since payment processing is one of the biggest costs that merchants have to deal with.

1. How Does Credit Card Processing Work?
2. Key Parties Involved
3. Credit Card Processing Fees & Costs
4. Common Reasons Why Credit Card Transactions Get Declined
5. Tips for Smooth Transaction Processing

Credit card processing includes three major steps. First comes authorization, which basically requests your card’s details and gets permission for the transaction from the issuer and network. Next up is authentication, which validates that the actual cardholder is the one making the transaction and confirms there’s enough available credit for the purchase. Finally, the transaction gets cleared and settled, and it appears on the cardholder’s and merchant’s financial statements. We’ll break down these steps in more detail below.

In the authorization stage, the merchant must obtain approval for the purchase from the bank or credit union that issued the card.

1. The cardholder presents their credit card to the merchant for payment at a point of sale (POS) terminal or enters their credit card information online.

2. The customer’s credit card details are sent to the acquiring bank (the bank that processes payments for the merchant) via an internet connection or a phone line.

3. The acquiring bank or processor forwards the credit card details to the credit card network that the customer’s card is on.

4. The credit card network clears the payment and requests payment authorization from the bank or credit union that issued the card. The authorization request includes the following:

• Credit card number
• Card expiration date
• Billing address — for Address Verification Service (AVS) validation
• Card security code
• Payment amount

Below is an illustration of the authorization process, showing all the different parties the request passes through.

In the authentication stage, the issuing bank verifies the validity of the customer’s credit card using fraud protection tools such as the Address Verification Service (AVS) and card security codes.

1. The issuing bank receives the payment authorization request from the credit card network.

2. The issuing bank validates the credit card number, checks the amount of available funds, matches the billing address to the one on file and validates the card’s security code.

3. The issuing bank approves (or declines) the transaction and sends back the appropriate response to the merchant through the same channels: credit card network and acquiring bank or processor.

4. Once the merchant receives the authorization, the issuing bank will place a hold in the amount of the purchase on the cardholder’s account. The merchant’s POS terminal will collect all approved authorizations to be processed in a “batch” at the end of the business day.

5. The merchant offers the customer a receipt to complete the sale.

In the graphic below, you can see how authentication moves from the issuing bank all the way back to you, the opposite direction of the authorization process.

In the clearing stage, the transaction is posted to both the cardholder’s monthly credit card billing statement and the merchant’s statement. It occurs simultaneously with the settlement stage.

1. At the end of each business day, the merchant sends the approved authorizations in a batch to the acquiring bank or processor.

2. The acquiring processor routes the batched information to the credit card network for settlement.

3. The credit card network forwards each approved transaction to the appropriate issuing bank.

4. Usually within 24 to 48 hours of the transaction, the issuing bank will transfer the funds less an “interchange fee,” which it shares with the credit card network.

5. The credit card network pays the acquiring bank and the acquiring processor their respective percentages from the remaining funds.

6. The acquiring bank credits the merchant’s account for cardholder purchases, less a “merchant discount rate.”

7. The issuing bank posts the transaction information to the cardholder’s account. The cardholder receives the statement and pays the bill.

Check out the graphic below for an easy-to-follow illustration of the clearing and settlement process.

The person who owns the credit card initiates the transaction in the first place.

This is the store or vendor who sells goods or services to the cardholder. The merchant accepts credit card payments. It also sends card information to and requests payment authorization from the cardholder’s issuing bank.

The acquiring bank is responsible for receiving payment authorization requests from the merchant and sending them to the issuing bank through the appropriate channels. It then relays the issuing bank’s response to the merchant.

This third-party entity is sometimes an arm of the acquiring bank. A processor provides a service or device that allows merchants to accept credit cards as well as send credit card payment details to the credit card network. It then forwards the payment authorization back to the acquiring bank.

These entities operate the networks that process credit card payments worldwide and govern interchange fees. Examples of credit card networks are Visa, MasterCard, Discover and American Express. In the transaction process, a credit card network receives the credit card payment details from the acquiring processor. It forwards the payment authorization request to the issuing bank and sends the issuing bank’s response to the acquiring processor.

This is the financial institution that issued the credit card involved in the transaction. It receives the payment authorization request from the credit card network and either approves or declines the transaction.

For the convenience of their customers, most merchants accept credit cards as payment. But you may have wondered why some merchants will accept only cash or require a minimum purchase amount before allowing the use of a credit card. The reason is that merchants must pay a price to accept credit card payments. Therefore, most will seek the cheapest credit card processing rates or mark up the prices of their products so customers’ payments can absorb the card-processing cost.

Having a minimum purchase amount also prevents merchants from losing too much money on cheap items with thin profit margins. For example, it may not be worth it for a mom and pop shop to pay the processing fees on items that cost less than $10 when they’re only making a few dollars per sale to begin with.

Depending on the type of merchant and through which platform a good or service is delivered (e.g., at the retail store, through e-commerce or by phone), credit card processing rates will vary. They usually are charged as flat fees, per-transaction fees or volume-based fees. For the purpose of this guide, we’ll only go into the major costs.

Merchants pay this fee for accepting credit card payments and receiving service from acquiring processors. It’s usually between 2% and 3% (online merchants pay the higher end) — to as much as 5% — of the total purchase price after sales tax is added. Also known as a discount fee, this rate comprises several components: the interchange fee, assessments, and markups.

The acquiring bank and acquiring processor pay this fee to the issuing bank. It is market-based and set by each credit card network (except American Express). Visa and MasterCard, for instance, update their interchange rates twice per year.

Most interchange fees are assessed in two parts: a percentage to the issuing bank and a fixed transaction fee to the credit card network. For instance, the per-swipe fee might be 1.15% plus $0.25. Interchange fees vary and are categorized through a process called “interchange qualification,” which determines the rate based on several criteria:

• Physical presence or absence of the card during the transaction
• Processing method used (e.g., swiped, manually entered or e-commerce)
• Credit card company
• Card type (e.g., regular, premium, commercial, rewards or government-issued)
• Merchant’s business type (as determined by merchant category code)

Credit card networks (except American Express) charge this fee for transactions that are made with their branded cards. It usually is based on a percentage of the total transaction volume for the month. The fee usually is fixed, and the merchant’s acquiring bank may not charge a lower rate or negotiate a better deal with the merchant.

Assessments generally are charged per transaction but can vary depending on the pricing model the merchant follows. For instance, Visa might charge a 0.11% assessment plus $0.0195 processing or usage fee for each card swipe. Assessment amounts may change periodically. Combined with the interchange fee, assessments constitute between 75% and 80% of total card-processing costs.

Acquiring banks and acquiring processors usually will include a markup over interchange fees and assessments partly as profit and partly to cover the cost of facilitating credit card transactions. It constitutes between 20% and 25% of total card-processing costs. Merchants generally can negotiate the markup with the entities that charge them. Markups vary by processor and pricing model. They may also include other types of fees.

Customers reserve the right to dispute a charge on their credit card billing statement within 60 days of the statement date. When the issuing bank receives a complaint from a customer, it charges the merchant between $10 and $50 as a penalty and for issuing a “retrieval request.” If the merchant doesn’t respond to the retrieval request within a certain timeframe, it could incur additional fees.

The merchant may appeal, but the process is long and likely to favor the customer. If the merchant loses, the issuing bank will recover, or charge back, the customer’s payment.

Getting your credit card transaction declined is never enjoyable. It’s embarrassing. But the rejection of a credit card can be caused by other reasons besides maxing out the card.

When a credit card is declined, the point of sale (POS) terminal will return a response code that explains why. Sometimes those codes don’t tell the full story. In those instances, only your credit card issuer can identify the particular reason for the rejection, so you may need to call customer service to resolve the problem.

Some of the most common reasons your card might get declined are:

• Incorrect credit card number, expiration date or security code
• Expired card
• Insufficient funds
• Damaged card
• Card hasn’t been activated yet
• Broken payment terminal
• Technical issues with any of the parties involved in your transaction
• Transaction was flagged by your bank as potential fraud

Although there’s a variety of things that can cause your card to get declined, there are also a lot of measures you can take to prevent that from happening and ensure that your transactions go smoothly.

• Keep track of how much you spend on your card so you don’t max it out and get declined because your available credit isn’t enough for the purchase.
• Store your card in a safe place like a wallet so it doesn’t get damaged, which can lead to it getting declined.
• Call your bank if you’re traveling far from home so that they anticipate purchases in a different location and don’t accidentally flag them as potential fraud.
• Activate new cards as soon as you receive them. You can’t use your card until it’s activated.
• Double check all of your card info before submitting a payment when making a transaction online.
• Always insert your card into the card reader or tap it if possible, rather than swiping the magnetic stripe on the back. Just swiping is a lot less secure since it doesn’t use your card’s EMV chip.

Credit card transaction processing is quick and easy, and you’ll know in seconds whether your card was approved or declined. Processing is also very safe because the EMV chip built into your card makes it very hard for fraudsters to get hold of your card info (especially if you’re able to use contactless payments). Plus, all major credit card networks offer $0 liability for fraudulent purchases.

You can learn more about how to use a credit card here on WalletHub.

1. How Do Credit Card Minimum Payments Work?
2. How Are Credit Card Minimum Payments Calculated?
3. Credit Card Minimum Payment Formulas
4. What Happens If You Only Pay the Minimum on a Credit Card?
5. What Else You Need to Know About Minimum Payments
6. Credit Card Minimum Payment FAQ

Credit card minimum payments make sure that you pay down at least a small amount of the balance on your credit card each month. But credit card issuers make a lot of profit from cardholders who pay only the minimum, because people who carry a balance end up owing costly interest. The minimum payment process is pretty simple:

1. The cardholder makes purchases with their card. The cost gets added to their balance, along with any other types of transactions they make, like balance transfers or cash advances.
2. At the end of the billing period, the issuer calculates the cardholder’s minimum payment based on their statement balance (and sometimes other factors like interest and fees).
3. The issuer sends the cardholder a credit card statement listing their balance, minimum payment, and monthly due date.
4. The cardholder can choose to pay the minimum payment or any amount above that. If they pay in full by the due date, they owe no interest on their purchases. If they pay less than the full statement balance, their balance and any new purchases will start accruing interest.
5. If the due date passes and the cardholder hasn’t made at least their minimum payment, they will owe a late fee. They may also trigger a penalty APR, which only applies to the cardholder’s existing balance at first but can also apply to future purchases if they become 60 days delinquent.

Now that you know how minimum payments work on credit cards, it’s time to get into the nitty-gritty of how they’re calculated.

Each credit card issuer calculates its minimum payment in its own way. Typically, the minimum payment is a small percentage of your balance plus things like interest and late fees (if applicable), or a flat dollar amount ranging from around $15 to $40. You will have to pay the greater of the two options.

If the total balance on your card is lower than the flat dollar amount, your balance becomes the minimum payment. To put that more simply, the credit card issuer can’t charge you more than you actually owe on the card.

*Note: The minimum payment amounts listed above omit past-due amounts, late fees and interest, which issuers will add to your minimum payment if they apply. For Discover, past-due amounts get added to all options, but interest and late fees only get added to the option that specifically notes it.

The good news is that you don’t have to do any fancy math yourself to calculate your minimum payment. You can find the minimum payment required by your credit card, along with the due date for that payment, on the monthly statement you receive by mail or email.

However, if you’re still curious about the formulas that credit card issuers use, we’ll break them down for you below.

The first way that issuers might calculate your minimum payment is by taking a flat percentage of your balance from purchases (and other transactions like purchases or cash advances) and then adding any interest or fees charged during the billing cycle. Or, if the percentage-based total is too low, there is a fixed dollar amount that you’ll have to pay.

Let’s say, for example, that you have a $1,000 balance from purchases, you owe $50 in interest and fees, and your minimum payment is the greater of 2% of your balance or $25. In that case, you need to:

• Calculate the percentage amount: 2% of $1,000 = $20
• Add in fees and interest: $20 + $50 in fees/interest = $70
• Make a $70+ minimum payment: The minimum is $70 because that’s higher than the flat dollar amount of $25

Some issuers will just charge either a percentage of your full statement balance or a flat dollar amount. This differs from the method above in that your interest and fees are lumped in with your regular transactions before your issuer calculates the percentage, rather than being added on afterward.

Let’s use the same example, which means that your balance is $1,050 including interest and fees. In this case, the minimum payment is 2% of that balance or $25.

• Calculate the percentage amount: 2% of $1,050 = $21
• Make a $25 minimum payment: The minimum is $25 because the flat dollar amount is higher than the percentage amount of $21

These are just examples, though. Since every credit card is different, there are a few easy steps you can use to calculate your own minimum payment.

You can calculate your minimum payment yourself using WalletHub’s free minimum payment calculator. All you have to do is enter your card’s balance, interest rate, minimum payment percentage, and minimum dollar amount for payments.

Then, click the blue “calculate” button to see how long it will take you to pay off your card using only minimum payments and how much interest you’d owe. Below the calculator, you’ll also find some helpful tips for making your minimum payments and paying off debt.

If you make at least your credit card’s minimum payment by the due date, you will avoid late fees and penalty APRs. However, any unpaid balance carried between months begins to accrue interest. Plus, not paying in full gets rid of the card’s grace period. That means new purchases will start accruing interest right when you make them, alongside your existing balance. Usually, it takes paying your full statement balance for two months in a row to restore your grace period.

It can be tempting to just pay the minimum every month. But in the long run, doing so will cost you money, and it could snowball into serious credit card debt if you’re spending more than you can pay off every month. It’s best for both your wallet and your credit score to always pay your credit card balance in full, if possible.

You should also know that only amounts paid above the minimum are applied to the balance with the highest APR on the card, if you have multiple balances (e.g. purchases, balance transfers, cash advances). In contrast, your issuer can apply your minimum payment to whatever balance it wants, and it may even be used to cover interest and fees before it ever reduces your principal.

Paying only the minimum leaves you with credit card debt and a higher credit utilization ratio, which can be detrimental to your credit score. Paying your full statement balance each month will help your score increase much more quickly. But if you can only pay the minimum, paying on time is crucial for maintaining a good credit score.

Most credit card issuers allow you to set up automatic payments each month through your online account. You can choose to pay the minimum due, the full statement balance or a custom amount.

Autopay ensures that you’ll never miss a payment as long as you keep enough money in your linked bank account to cover what you owe.

Yes, if your card has a 0% APR on purchases or balance transfers, you will still need to make monthly minimum payments despite not accruing any interest. If you don’t make your minimum payment, your issuer may cancel your 0% APR and start charging interest at the regular APR or even a penalty rate, on top of charging you a late fee.

Store credit cards occupy a very interesting niche within the broader credit card market. For one thing, they tend to have more lenient approval requirements than general-use cards with comparable terms. That’s largely because they can only be used to make purchases with the retailers they represent, which limits the risk for the issuer. As a result, store credit cards are a great way to build credit at a low cost.

Store cards aren’t only for the limited-and-fair credit crowd, however. Their sign-up bonuses and ongoing rewards provide savings at affiliated stores that even the market’s best overall rewards cards can’t always match.

To help people make informed choices about which credit cards to apply for and when, WalletHub monitors the store card landscape by tracking more than 245 store credit card offers. Store credit cards change over time, after all, with the quality of their terms varying based on the economic climate, industry trends and retailers’ priorities.

See 2026's Best Store Credit Cards

1. Main Findings
2. Most Common Features
3. Rewards
4. Interest Rates
5. Gas Cards
6. Methodology

• The average regular APR on a store credit card is 33.14% as of October 2026, up from 33.07% in October 2025.

Source: WalletHub

• 100% of store credit cards have $0 annual fees. The average general-use credit card charges $29.67 per year.
• 29% of store cards offer ongoing rewards, primarily in the form of points.
• The average store card with an initial discount for new cardholders gives 18.24% off.
• The average store credit card with a 0% intro rate gives roughly 19 months without interest – roughly 2 months longer than in 2024. The average general-use 0% credit card has an intro period of 11.7 months.
• 78% of store credit cards with 0% intro APRs use a dangerous feature called deferred interest. Deferred interest means you will benefit from a reduced introductory APR, often 0%, but finance charges can retroactively apply to your original purchase amount – like the intro rate never existed – if you pay your bill late or don’t pay off your full balance during the intro period.

This report reflects data on over 245 store credit card offers, which WalletHub monitors weekly. All the annual data mentioned above is from early October 2026.

Please note:

• We did not report any finding with fewer than 5 valid data points.
• Any monthly fees assessed by cards were annualized for the purpose of this report.
• There are two types of deferred interest plans: those offered as part of the online shopping experience and those offered in stores only. We only considered plans that are part of the online experience, so the total number of deferred interest plans available might be higher than reported here.
• We considered rewards in the form of cash back and discounts to be the same thing, as the end result for the consumer is the same in both cases: a certain percentage saved.

Please direct questions and requests for additional information to media@wallethub.com.

For statistics on the credit card market overall, check out our latest Credit Card Landscape Report.

Most Americans rely on cars to get around, as “87% of daily trips take place in personal vehicles,” according to the Bureau of Transportation Statistics. While driving offers a more private and comfortable commute, it is often a major hassle and expense. Drivers spend an average of nearly 370 hours on the road each year. That’s more than 15 days. Add the costs of wasted time and fuel due to traffic congestions, and our collective tab comes to about $894 per driver each year.

Some cities offer a cheaper, smoother and safer driving experience than others. To determine those places, WalletHub compared 100 of the largest U.S. cities across 30 key indicators of driver-friendliness. Our data set ranges from average gas prices to annual hours in traffic congestion per auto commuter to the likelihood of accidents.

Chip Lupo, WalletHub Analyst

1. Main Findings
2. In-Depth Look at the Best Cities to Drive in
3. Ask the Experts
4. Methodology

Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that city, where a rank of 1 represents the best conditions for that metric category.

Annual Hours Spent in Congestion per Auto Commuter

Lowest

• 1. Lubbock, TX
• T-2. Toledo, OH
• T-2. Lincoln, NE
• 4. Greensboro, NC
• 5. Winston-Salem, NC

Highest

• T-65. Boston, MA
• T-65. Los Angeles, CA
• T-65. Philadelphia, PA
• T-65. New York, NY
• T-65. Chicago, IL

Best City vs. Worst City: 14x Difference

Lubbock, TX vs. Chicago, IL

Days with Precipitation

Fewest

• T-1. Las Vegas, NV
• T-1. Henderson, NV
• T-1. North Las Vegas, NV
• 4. Long Beach, CA
• T-5. Anaheim, CA
• T-5. Santa Ana, CA

Most

• 96. Portland, OR
• 97. Pittsburgh, PA
• T-98. Seattle, WA
• T-98. Cleveland, OH
• 100. Buffalo, NY

Best City vs. Worst City: 6x Difference

Las Vegas, NV vs. Buffalo, NY

Accident Likelihood in City vs. National Avg.

Lowest

• 1. Boise, ID
• 2. Laredo, TX
• 3. Madison, WI
• 4. Colorado Springs, CO
• 5. Scottsdale, AZ

Highest

• 96. Oakland, CA
• T-97. Los Angeles, CA
• T-97. Boston, MA
• T-97. Washington, DC
• T-97. Baltimore, MD

Car Theft Rate

Lowest

• 1. Hialeah, FL
• 2. Irvine, CA
• 3. Gilbert, AZ
• 4. Plano, TX
• 5. Chandler, AZ

Highest

• T-91. Philadelphia, PA
• T-91. Minneapolis, MN
• T-91. St. Louis, MO
• T-91. Kansas City, MO
• T-91. Oakland, CA

Auto-Repair Shops per Capita

Most

• 1. Birmingham, AL
• 2. San Bernardino, CA
• 3. Baton Rouge, LA
• 4. Hialeah, FL
• 5. Garland, TX

Fewest

• 96. Irvine, CA
• 97. Houston, TX
• 98. Chicago, IL
• 99. Los Angeles, CA
• 100. New York, NY

Best City vs. Worst City: 7x Difference

Birmingham, AL vs. New York, NY

Car Washes per Capita

Most

• T-1. Orlando, FL
• T-1. Tampa, FL
• T-1. Miami, FL
• T-1. Riverside, CA
• T-1. Atlanta, GA

Fewest

• 96. Anchorage, AK
• 97. Fremont, CA
• 98. Irving, TX
• 99. Jersey City, NJ
• 100. Madison, WI

Best City vs. Worst City: 7x Difference

Orlando, FL vs. Madison, WI

Avg. Gas Prices

Lowest

• 1. Fort Wayne, IN
• 2. Indianapolis, IN
• 3. Houston, TX
• 4. Oklahoma City, OK
• 5. Tulsa, OK

Highest

• T-96. Los Angeles, CA
• T-96. Long Beach, CA
• T-98. San Diego, CA
• T-98. Chula Vista, CA
• 100. San Francisco, CA

Best City vs. Worst City: 2x Difference

Fort Wayne, IN vs. San Francisco, CA

Auto Maintenance Costs

Lowest

• 1. Jacksonville, FL
• 2. Columbus, OH
• 3. St. Louis, MO
• 4. Raleigh, NC
• 5. Cleveland, OH

Highest

• T-96. San Diego, CA
• T-96. Chula Vista, CA
• 98. Plano, TX
• 99. Honolulu, HI
• 100. New York, NY

Best City vs. Worst City: 3x Difference

Jacksonville, FL vs. New York, NY

Parking Rates

Lowest

• 1. Corpus Christi, TX
• T-2. Lexington-Fayette, KY
• T-2. Winston-Salem, NC
• 4. Lincoln, NE
• T-5. Louisville, KY
• T-5. Raleigh, NC

Highest

• 77. Boston, MA
• 78. Philadelphia, PA
• T-79. New York, NY
• T-79. Chicago, IL
• T-79. San Diego, CA

Best City vs. Worst City: 33x Difference

Corpus Christi, TX vs. San Diego, CA

Show More

Scottsdale, AZ, is the best city to drive in, largely because it’s an inexpensive city. It ranks as the second-cheapest city when it comes to the average cost for a new car and the 13th-cheapest average parking rate. It also stands out for its road and driving conditions. In fact, it is among the cities with the best bridge quality and the fifth-lowest accident likelihood compared with the national average. In addition, Scottsdale has the 28th-lowest average monthly car insurance premium.

Scottsdale also has relatively favorable conditions for drivers. The city has the 18th-most auto repair shops per capita, giving residents plenty of options for vehicle maintenance. Its traffic fatality rate ranks 33rd among the 100 cities in our study.

Safety is also key while driving, and Scottsdale has the sixth-lowest share of uninsured drivers among the 100 cities in our study. The city also has the 12th-lowest motor vehicle theft offenses and 18th-highest for alternative-fuel stations.

Boise, ID, is the second-best city to drive in, boasting the lowest likelihood of having an accident, at nearly 23% below the national average. It also has the seventh-lowest traffic fatality rate in the country, the lowest percentage of uninsured drivers and the third-lowest prevalence of hard-braking incidents. This makes the city an extremely safe place for drivers. Vehicles are also safe even when unoccupied, as Boise has the sixth-lowest theft rate.

Boise is a relatively cheap city for drivers, too. It has the lowest average car insurance premium, sixth-lowest average cost of a new car and fifth-lowest additional vehicle operating costs.

On top of all that, Boise residents can enjoy smooth transit due to the 25th-shortest commute times and 23rd-best roads in the country.

Fort Wayne, IN, is the third-best city to drive in, largely because it’s an inexpensive city. It ranks as the ninth-cheapest city when it comes to the average parking rate. It’s also the cheapest city for gas, with the lowest average gas price among the 100 cities in our study. Fort Wayne also is the 24th-least expensive city for auto maintenance and second-least expensive for car insurance out of the 100 cities in our study.

Fort Wayne residents’ commutes aren’t too bad, as people only spend an average of 16 hours per year in congested traffic. That’s the sixth-fewest in the nation. In addition, Fort Wayne ranks as the 13th-best city for road maintenance.

Safety is also key while driving, and Fort Wayne has the 15th-lowest share of drivers that are uninsured. The city also boasts a relatively high number of auto repair shops per capita, offering residents convenient access to vehicle maintenance. Additionally, Fort Wayne has the 12th-highest number of roadway miles per capita, indicating strong road infrastructure and potentially lighter traffic congestion.

With cost, safety and environmental impact ranking among the top concerns for the auto industry, we asked a panel of experts to share their thoughts on the following key questions:

1. What money-saving tips do you have for drivers, with gas prices still relatively high?
2. When do you think there will be more self-driving cars than human-driven? How have recent advances in AI impacted that timeline?
3. Considering all potential consequences, do you think that automated vehicles will be a net benefit or net negative for society?
4. What can local authorities do to reduce traffic and improve safety?
5. What are some of the biggest infrastructure challenges in U.S. cities?

Ask the Experts

Rob Weiner
Popular Culture Librarian Texas Tech University and editor of Captain America and the Struggle of the Superhero
Read More

Daniel E. Goldberg
Ed.D., Associate Professor of Instruction; Academic Director of the Business Management BBA Program, Department of Management, Fox School of Business - Temple University
Read More

Dr. John A. Yeressian
JD, MBA - CA broker #01855965, Professor of Business and Real Estate, Department Chair El Camino College
Read More

David Kack
Program Manager, Mobility & Public Transportation, Western Transportation Institute (WTI) - Montana State University
Read More

Scott S. Washburn
Ph.D., P.E., F.ASCE – Professor Emeritus, University of Florida, Civil and Coastal Engineering
Read More

Andre Boehman
Professor, Mechanical Engineering; Vennema Professor of Engineering; Director, W.E. Lay Automotive Laboratory – University of Michigan
Read More

More Experts

In order to determine the best and worst cities for drivers, WalletHub compared a sample of the 100 most populated U.S. cities across four key dimensions: 1) Cost of Ownership & Maintenance, 2) Traffic & Infrastructure, 3) Safety and 4) Access to Vehicles & Maintenance. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.

We evaluated those dimensions using 30 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for drivers. Data for metrics marked with an asterisk (*) were available at the state level only. For metrics marked with two asterisks (**), the square root of the population was used to calculate the population size in order to avoid overcompensating for minor differences across cities.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.

• Cost of New Car: Full Weight (~4.29 Points)
• Average Gas Prices: Double Weight (~8.57 Points)
• Average Monthly Car Insurance Premium: Full Weight (~4.29 Points)
• Auto Maintenance Costs: Full Weight (~4.29 Points)
• Total Extra Vehicle Operating Costs per Driver: Full Weight (~4.29 Points) Note: Additional vehicle operating costs (VOC) are the “result of driving on roads in need of repair, lost time and fuel due to congestion-related delays, and the costs of traffic crashes in which roadway features likely were a contributing factor,” according to transportation research firm TRIP.
• Average Parking Rate: Full Weight (~4.29 Points)

• Annual Hours Spent in Congestion per Auto Commuter: Full Weight (~3.64 Points)
• Number of Days with Precipitation: Full Weight (~3.64 Points)
• Number of Cold Days: Full Weight (~3.64 Points) Note: This metric specifically measures the average number of days with a minimum temperature of 32 degrees F or lower.
• Average Commute Time by Car (in Minutes): Full Weight (~3.64 Points)
• Number of Alternative-Fuel Stations per Capita: Full Weight (~3.64 Points)
• Quality of Roads: Full Weight (~3.64 Points)
• Quality of Bridges*: Quarter Weight (~0.91 Points)
• Roadway Miles per 1,000 Persons: Full Weight (~3.64 Points)
• Waze Driver Satisfaction Rating: Full Weight (~3.64 Points)

• Accident Likelihood in City vs. National Average: Full Weight (~3.53 Points)
• Traffic Fatality Rate per 100,000 Population: Full Weight (~3.53 Points)
• Share of Adults Who Always or Nearly Always Wear a Seatbelt: Full Weight (~3.53 Points)
• Number of Hard-Braking Events per 1,000 Miles: Full Weight (~3.53 Points) Note: Hard-braking data is based on customers voluntarily enrolled in Allstate’s Drivewise® telematics program from 2016-2017.
• Share of Uninsured Drivers*: Full Weight (~3.53 Points)
• Rate of Car Thefts: Full Weight (~3.53 Points)
• Rate of Larceny: Full Weight (~3.53 Points)
• Strictness of DUI Punishment*: Half Weight (~1.76 Points) Note: This metric is based on WalletHub’s “Strictest & Most Lenient States on DUI” ranking.
• Punitiveness of High-Risk Driver’s Insurance*: Half Weight (~1.76 Points) Note: This metric is based on WalletHub’s “States with the Highest & Lowest Insurance Premium Penalties for High-Risk Drivers” ranking.
• Driving Laws Score*: Half Weight (~1.76 Points)

• Car Dealerships per Capita**: Full Weight (~2.00 Points)
• Auto-Repair Shops per Capita**: Full Weight (~2.00 Points)
• Car Washes per Capita**: Full Weight (~2.00 Points)
• Gas Stations per Capita**: Full Weight (~2.00 Points)
• Parking Lots and Garages per Capita: Full Weight (~2.00 Points)

Sources: Data used to create this ranking were collected as of September 8, 2026 from the U.S. Census Bureau, Federal Bureau of Investigation, Council for Community and Economic Research, National Highway Traffic Safety Administration, Advocates for Highway and Auto Safety, INRIX, National Centers for Environmental Information, Centers for Disease Control and Prevention, American Automobile Association, The Road Information Program, Federal Highway Administration, Waze Mobile, Allstate Insurance Company, U.S. Department of Energy, QuinStreet Insurance Agency, Yelp, TrueCar, Insurance Information Institute and WalletHub research.

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• National average for August 2026: $4.19 per gallon
• Change from August 2025: 28.67% up

1. Gas Prices by Year
2. Gas Prices by Month
3. Raw Data

• 2012 had the highest gas price when adjusted for inflation. In 2025, gas was $1.97 below its highest price point.

View Raw Data

View Raw Data

Checking accounts are essential for managing daily transactions but typically do not earn interest. Even the checking accounts that do offer interest usually have lower rates than savings accounts. As of September 2026, the average interest rate for these accounts is 0.07%, according to the FDIC. This allows you to earn a small return while maintaining easy access to your funds.

1. Average Checking Account Interest Rates Over Time
2. Average Checking Account Interest Rates by Category
3. Average Checking Account Interest Rates by Institution
4. Average Checking Account Interest Rates by Region
5. Popular High-Yield Checking Accounts

As of September 2026, the average checking account interest rate is 0.07%, which is 1.75 times the 0.04% rate from September 2022.

Source: Federal deposit Insurance Corporation, 2026

Online checking accounts give the same interest rates as the branch-based accounts.

Source: WalletHub Banking Landscape Report, 2026

Credit unions offered much higher interest rates on deposits in Q2 2026, about 61 times higher than regional banks.

Source: WalletHub Banking Landscape Report, 2026

In Q2 2026, interest rates in the Southeast region were approximately 25 times higher than those in the West.

Source: WalletHub Banking Landscape Report, 2026

For more information, check out WalletHub’s complete review of the best high-yield checking accounts.