Customers can make in-store transactions by swiping their card, over-the-phone transactions, online transactions, etc., and they all carry different levels of risk. The amount of payment processing fees will also depend on how the card is processed. In addition to the per-transaction fee, it may also charge a monthly maintenance fee and an additional fee for transactions that are disputed by customers. The merchant account provider charges a small fee on top of the interchange fee depending on the volume of transactions and type of business. A merchant account lets a company accept credit card payments, and the merchant account provider deposits the payments in the merchant’s bank account at regular intervals. Merchant account provider feeįor a business to process credit card payments, it must interlink the credit card network to a merchant account. The interchange rate is also affected by the type of card, the risk level of the merchant’s business, as well as how the merchant accepts the payment (swipe, online, or typing into a terminal). The interchange fees are set by each network, and they vary depending on the issuer. The purpose of the interchange fee is to help the issuing bank cover handling costs and the risk of approving the sale, as well as any fraudulent transactions that may occur. Interchange rateĪn interchange rate refers to the amount that the credit card issuer (such as Discover, Visa, and Mastercard) charges the receiving bank every time a customer pays using a credit card. The amount of fees that merchants pay to accept credit card payments depend on various factors. High-risk transactions such as e-commerce transactions and over-the-phone transactions come with higher processing fees than low-risk transactions such as physical swiping at a payment terminal.įactors that Affect Payment Processing Fees.The amount of payment processing fees depends on the pricing model preferred by the payment processor, as well as the level of risk of the transaction.Payment processing fees refer to fees charged to merchants for processing credit card payments and online payments from customers.
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