Who Get’s Your Merchant Account Fees?

The Biggest Chunk: The Issuing Bank (the bank that “issued” your customer’s their credit card)
This part of your fees are called “Interchange.” Depending on the type of business, size of transaction and type used these fees range between 1.03% and 2.70% plus transaction fees of $0 to $0.15.

Next: Visa or MasterCard (the associations)
These are called “Assessments.” Visa gets 0.0925% and MasterCard gets 0.095%

Then: The Networks (like phone networks, but for transactions)
These typically charge a fee for each authorization and capture and sometimes a small percentage of the captures transaction amount (.02% – .06%).

Followed By: Your Processor and the Acquiring Bank (the bank that gives you your customer’s money)
These can charge almost whatever they want, as long as you as the merchant will let them. Typical amounts are from .30% to 1.50%.

This is, of course, a pretty simple overview. For more details, check out:

Where do Processing Fees Come From? Pt. 1

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