Amex credit card processing fee8/8/2023 ![]() ![]() This means you’re likely to see every type of credit card processing fee you’re paying itemized and distinguished on your merchant statements, which is what makes interchange plus pricing the most transparent pricing model around. If you’re on an interchange plus pricing plan, the processor will typically pass interchange fees and card brand fees through at cost, and then tack on its own transaction and service fees (often called markups). This is where knowing the names of the most common card brand fees becomes important. Some processors will include card brand fees into the mix when determining the different rates for your different pricing tiers, but some processors will separate card brand fees off from transactions and itemize them alongside their own service fees. If you’re on a tiered pricing plan, you’ll pay different transaction rates depending on which tiers or “buckets” a particular transaction falls into, with card-not-present, higher risk, and rewards cards typically generating higher rates. Since your flat rate will include any wholesale costs your processor is paying and won’t change, you won’t see interchange fees or card brand fees itemized on your merchant statements, and there’s essentially no way to figure it out on your own. If you’re on a flat rate pricing model, you’ll pay the same overall rate for most transactions (usually with a sightly higher rate for card-not-present transactions), and possibly some monthly fees depending on the processor or payment service provider (PSP) you choose. Here’s a rundown of how your card network fees fees will appear (or not appear) on your merchant statements with different credit card pricing structures: However, your processor’s pricing structure will determine the extent to which you’re aware of the card brand fees you’re paying, as well as the form in which you pay them. Like interchange fees, card brand fees or card association fees are part of every payment processor’s wholesale costs, which means they figure into the fees you’ll pay to process credit and debit card payments. ![]() This pattern applies generally to the other card brands, including MasterCard, Discover, and American Express, and there are a slew of card brand fees you’ll only encounter in specific situations, such as when you process a payment using a card issued outside of the United States.Ĭard brand fees go by a lot of names in the payments industry-all used interchangeably-including card association fees, card network fees, assessment fees, or simply “assessments.” We’ll use all those terms, too, so that you’ll master them for when the time comes to discuss your rates and other credit card processing fees with your payment processor. Fees that apply to individual transactions (often called per-item fees).įor example, Visa charges an “acquirer service fee” of 0.14% on all credit sales involving Visa branded cards, but Visa also charges a per-item fee of $0.0195 for each credit card transaction. ![]() Fees that apply to the gross sales volume for all transactions of a particular type and.Because each card association or card network has a hand in facilitating transactions involving their branded cards, the money they collect from card brand fees serves to cover their costs and generate profit.Ĭard brand fees generally take two forms: Card brand fees are fees paid to the card associations like Visa, MasterCard, Discover, and American Express when your business accepts credit and debit card payments. ![]()
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