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Credit Card Processing Fees- A major Cost Component



Accepting credit cards is vital to ensure the success of the business. Credit card processing fees are not only paid by the merchant, but also by the cardholder for specific transactions, especially for international transactions. There are different scenarios on which fees percentage is dependent including the size of the transaction, processing methods either using card physically or credentials only and the type of business the owner runs. All the business types have a standard industrial code and the merchant category code.


Different types of fees are imposed on credit cards on retails or online transactions. Wholesale and mark-up fees, wholesale fees are non-negotiable and charged by issuing banks and the card company. It is fixed fess irrespective of card type. The card processor and payment portal will charge their markup expenses. The charges will be decided by the processor. But this charge is not charged. This can be the expense you ought to be comparing when shopping around for a dealer account supplier.

Other types of fees including transaction fees, flat fees, and incidental fees. Transactional fees have to pay for every transaction done with a card and it is the highest among all. Different pricing schemas are implemented to calculate it. Flat fees are the cost of using the platform, for using the specific option to pay online, a fixed cost has to be borne by the cardholder. Incidental fees are the cost in some specific circumstances such as insufficient funds. Few charges have to pay on a transactional basis, while others are monthly.

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