How Do Credit Card Fees and Costs Work?


For new and even current businesses, credit card fees can be very confusing. Accepting credit cards is an important part of your business, but you want to first understand what you’re paying for and the fee process and structure. There’s many solutions available to you and before deciding you want to be well-informed. There is a lot of factors that go into the credit card fees you end up being charged, which is discussed below.

Credit Card Interchange Fees

The largest portion of fees comes from interchange fees, which are collected from the credit card issuers. These fees are a certain percentage and then a fixed fee, typically no more than $0.25 per transaction. However, there are a variety of factors that go into this.

Credit Card Network

The four major credit card networks are Visa, Mastercard, Discover, and American Express. They all have slightly different credit card rates, which will be discussed.

Type of Card

Some fees are altered whether the card in the transaction being used is a credit or debit card. The type of credit card is also important. For example, business credit cards can be more expensive to process, and other types of reward cards as well.

How You Process the Payment

This means whether you swipe the credit card through a card reader, or manually punch in the card for a credit card verification, these will both impact the fees you pay on a transaction. There’s also different fees between online and mobile payments. However, transactions that are swiped tend to have the lowest fees involved.

Merchant Service Provider Fees

A merchant service provider, which handles your payment processing for business will charge fees for the services they provide your business. Depending on the volume of transactions your business runs, the fees will vary. We recommend taking your time when evaluating the credit card process. At Gulf Management Systems we create a customized payment solution that fits your business. Call us at (855) 847-7764 to find out more or simply fill out the form below.

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