Fees

Fees for Card Payments

Flat Rate model

With the flat-rate pricing model, merchants pay a single fixed discount rate plus a transaction fee on every transaction, regardless of card type or network.

Interchange ++ model

The Interchange++ pricing model includes three components: interchange fees, pass-through fees, and a payment processor markup fee. The first two components are:

• Interchange fees: These are fees charged by card-issuing banks and paid to those issuers as compensation for handling the transaction. The rates vary depending on the type and brand of card used (e.g., Visa, Mastercard), the merchant category, and the transaction type (e.g., in-person, online).
• Pass-through fees (scheme fees): These are fees charged by the card networks (e.g., Visa, Mastercard, American Express, Discover) for using their payment infrastructure. Like interchange fees, the rates vary by network and transaction type.

Several factors impact interchange costs, including:

• Transaction type: Different types of transactions, such as online transactions or contactless payments, may incur different interchange fees.
• Card type: The type of card used for the transaction (e.g., debit or credit) can also impact the interchange fee.
• Merchant category: Merchants are categorized by the type of goods or services they offer, and different categories carry different interchange rates.
• Transaction value: Interchange fees are typically calculated as a percentage of the transaction amount, so higher-value transactions result in higher interchange fees.
• Risk: The level of risk associated with the transaction can also impact the interchange fee. For example, a transaction with a high risk of fraud or chargeback may incur a higher interchange fee.

Fees Related to card payments

Processing Fees

• Discount rate: Incurred every time a charge is processed, unless voided.
• Transaction fee: Incurred every time a charge or refund is initiated.

Dispute Fees

• Retrieval fee: Incurred when a customer's bank requests additional information to verify a transaction.
• Chargeback fee: Incurred when a transaction is formally disputed by the customer.
• Reversal fee: Incurred when a dispute is reversed and funds are returned to the merchant.

Account Fees

• Monthly account fee: Monthly fee for maintaining a merchant card account.
• Monthly minimum fee: Fee reflecting the minimum monthly charge a merchant must meet in card fees.
• Bank account change fee: Incurred when a merchant updates their bank account information.

Other Fee's

• Card account updater fee: Incurred when card information is successfully updated using the Card Account Updater service.
• Monthly terminal fee: Monthly fee for maintaining a terminal reader. This fee is specific to card-present pricing templates.

Fees for Bank-to-Bank Payments

Merchants processing bank-to-bank payments are set up on a flat-fee model, where a fixed transaction fee is applied to each payment.

Fees related to ACH and EFT payments:

Processing Fees:

• Transaction fee: Incurred each time a bank-to-bank payment is initiated.
• Return fee: Incurred when a bank-to-bank payment is rejected.

Account Fees:

• Monthly account fee: Monthly fee for maintaining a merchant ACH/EFT account.
• Monthly minimum fee: Fee reflecting the minimum monthly charge a merchant must meet in bank-to-bank fees.

To view your Pricing, refer to this article: Processing Details