The Fees Associate With Online Credit Card Processing

Pile of Credit Cards

One of the most important factors when choosing from the many credit card processing companies is cost. There is definitely some variety between the various providers, with some charges very low fees. The potential fees themselves fall into two categories. In this article, we will look at the standard fees.

Discount rate – this is a percentage of the transaction that is retained by the credit card processor. The standard industry average for this falls between two and three percent. Some banks charge higher fees for high-risk categories.

Gateway fee – The normal gateway fee is usually a monthly charge that falls around $20. This gateway is where the information is encrypted and sent to the credit card networks.

Transaction fee – the transaction fee also falls into two categories. One is the transaction fee per transaction. This is a fee charged for each and every transaction and is usually between $0.25 to $0.35. Then there is the gateway fee per transaction, which comes to about $0.06 to $0.15 per transaction. These tend to vary by merchant account provider.

Statement fee – the processor needs to list out all the transactions for you to review. This is a $10 to $15 flat charge for the statement.

For those who have not been exposed to these fees before, it might seem like a lot. Just remember that these are paid for every transaction you use your credit card. Even the physical in-store purchases have the same fee.