Merchant processing fees are the charges assessed by payment processors for handling electronic transactions between merchants (businesses) and customers. These fees are typically charged as a percentage of the transaction amount, plus a fixed per-transaction fee.
The specific fees that merchants pay can vary depending on the payment processor and the type of transaction being processed. For example, credit and debit card transactions may be subject to different fees, and fees may also vary depending on the type of card being used (e.g., rewards cards may have higher fees than standard cards).
Some common types of fees that may be charged by payment processors include:
- Interchange fees: These are fees charged by the card networks (e.g., Visa, Mastercard) for processing transactions. Interchange fees are typically a percentage of the transaction amount, and may vary depending on the type of card being used and the merchant’s industry.
- Processing fees: These are fees charged by the payment processor for processing the transaction. Processing fees may be a percentage of the transaction amount, a fixed fee per transaction, or a combination of both.
- Monthly fees: Some payment processors may charge a monthly fee for access to their services, or for specific features (e.g., reporting tools, fraud prevention).
Overall, merchant processing fees can have a significant impact on a merchant’s bottom line, and it’s important for businesses to carefully consider their options and choose a payment processor that offers transparent pricing and competitive fees. Feel free to reach out to us at GetPayment so we can help you in greater detail!