Rather than the consumer, the business is responsible for paying credit card processing fees. These fees can vary depending on the pricing model of the processing company; some processors charge a percentage-based fee, while others impose a flat fee per transaction. A fixed fee structure might be more cost-effective for enterprise businesses with a high volume of transactions. You might see either a total fee (blended pricing) or a detailed breakdown of costs on your invoice. These fees are accumulated at different stages of credit card processing; here’s a breakdown of those fees:
- Processing fee: Charged by your payment provider for processing the transaction
- Card scheme fee: Charged by the card schemes for using their network
- Interchange fee: Charged by the customer’s bank
- Acquiring fee: Charged by the acquirer
Interchange fees are usually the biggest expense when it comes to processing credit cards. Interchange fees typically range from 1.5% to 3.5% depending on the card type, transaction method, and other factors. The structure and fees vary for each market, as do types of cards (consumer debit, commercial debit, pre-paid, and so on). And they change all the time.
Additional fees to be aware of:
Credit card processing fees can vary based on factors such as the type of transaction, location, and enterprise business model. Additionally, processors may impose one-off costs like setup or integration fees. They might also offer value-added services such as 3D Secure, fraud protection, or authorization optimization, which can affect overall costs but significantly benefit your business. Payment device or terminal fees may also apply. Source
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