The charge only applies if your monthly transaction fees haven’t met the minimum threshold.Īdministration costs include fees for account set-up and early termination. The MMSC acts as a safeguard for the processing provider for months with low sales. Minimum Monthly Service Charge (MMSC) ensures that card processors turn a profit. If a customer pays by phone or online, the bank takes on greater risk, therefore charges a higher transaction fee. Customers might ask for a chargeback for transactions they don’t approve of or recognise, and the bank often sides with the customer.Ĭard-not-present fees apply to card-not-present transactions. This ensures that customer data is stored and transmitted safely.Ĭhargeback fees are costs incurred when a transaction is reversed. All UK businesses accepting card payments must comply with the Payment Card Industry Data Security Standard (PCI DSS). PCI compliance fees cover an important security feature. This refers to the process of testing the customer’s card details to make sure they are valid. It acts as a third party to communicate between the cardholder’s bank and your merchant account.Īuthorisation fees cover the cost of card authorisation. If your business handles online card payments, you’ll need a payment gateway to handle the transaction. Fixed rates typically include a standard number of transactions. Payment gateway fees might be charged at a flat monthly rate or per transaction. Interchange fees are included in this category and are charged to merchants directly. The rate will depend on the type of card used, with commercial credit cards costlier than debit cards. Types of credit and debit card processing feesĬredit and debit card merchant fees include a combination of monthly or one-off payments and transaction fees:Ī Merchant Service Charge (MSC) or processing fee is a transaction fee typically charged as a percentage of each sale. The high number of different transaction fees is down to the complexity of the multi-party card scheme, which involves at least seven different parties.Įvery credit card transaction includes at least seven different parties. In addition to per-transaction fees, credit and debit card charges can include additional monthly service charges and processing fees. The method of payment (for example, was the payment made over the phone or by mail?) The merchant’s acquirer (ie the business that processes payments on behalf of the merchant) The card network used (such as Visa, MasterCard and Amex) The amount will vary widely depending on several factors, including: ![]() Merchant fees refer to the charges paid by the business when a customer makes a card payment. What are merchant fees for credit and debit cards? This article will walk you through the different types of card charges and how to reduce them. From transaction fees to monthly service charges, there are several merchant fees for credit and debit cards to be aware of. Does your business accept credit or debit card payments? If so, you’ll be paying card charges.
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