Everything to Know About Online Payment Processing Fees

What are payment fees?

The Acquiring Bank

The Issuing Bank

  1. the operating costs (costs for processing the transaction);
  2. the costs for the payment guarantee for the merchant;
  3. the security of fraud-prevention costs.

Credit Card Associations

The Payment Processor

How are card processing fees bundled?

Flat-rate payment fee pricing

Interchange plus pricing model

Tiered fee pricing

Membership fee pricing model

Other merchant fees associated with online payment processing

  • Account setup fees. While most professional payment processors will not charge setup fees, some high-risk account providers may apply the charge as part of their sign-up process.
  • Address Verification Services. Depending on how your contract is negotiated, you may incur an AVS cost each time a transaction is checked. While this system is integral in your fraud fighting arsenal, be sure to keep a good grip on how it’s billed.
  • Chargeback fees. Every time your chargebacks are processed in favor of your customers, you will incur an additional chargeback fee. Ensure you have the right approach to deal with chargebacks to avoid these unexpected hefty costs.

Conclusion

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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2Checkout (now Verifone)

2Checkout (now Verifone)

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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