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UNDERSTANDING YOUR CREDIT CARD FEES

The evolving world of payment processing may seem complicated, but it doesn’t have to be. Arm yourself with the fundamental knowledge—and leverage it to improve your business.

Cost Components of a Credit Card Transaction

The Breakdown of Each Fee

(The breakdown below reflects industry standards.)

INTERCHANGE

%

What it is:

The amount paid to the card issuer (i.e. Chase Bank, PNC Bank) as compensation for expenses incurred in providing lines of credit to cardholders.

What it pays for:

Cardholder line of credit (including risk), cardholder statements, detailed reporting, rewards benefits.

DUES AND ASSESSMENTS

%

What it is:

Flat amount paid to the credit card associations (i.e. Visa, Mastercard, Discover or American Express).

What it pays for:

Network infrastructure, establishment/maintenance of rules and pricing, research and development, marketing and branding.

PROCESSOR FEE

%

What it is:

The fee paid to the financial organization (i.e. Infintech) that handles the transaction.

What it pays for:

Communication costs, customer support, technical support, equipment downloads, risk/underwriting, statements/billing, product development, other overhead expenses.

Influence Your Fees Through Interchange

In an industry that’s blanketed with inconsistencies, it’s hard to know what factors
influence your interchange rate.

(Interchange makes up the majority of your credit card processing costs.)

Several factors determine what interchange rate a transaction qualifies for:

Card Type

Transaction Amount

Processing Environment

Additional Processing Data

Industry Type

Line Item Details

Contact Infintech for a Free Rate Review

Our payment processing advisors use best practices to earn our merchants optimal savings. It’s one reason we rank in the top 5% in our industry for highest customer retention.

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