When you accept credit cards, and you pay your fees, did you ever wonder where the money goes?

The four recipients of the fees that are charged  ( and the average percent they each get) are:

1.    Issuing Banks (Interchange)- They get about 82% of the fees you pay for your processing.  This is a rough estimate depending on your volumes, mix of card types and business type.  They get the Interchange Percentage and the Interchange per item fee.  These Interchange Rates and Fees are fees are set by Visa, MasterCard and Discover and are paid to the card-issuing bank. Interchange Rates are exactly the same for all credit card processors and no processor can give you a lower rate or a better deal on Interchange.

2.    Card Brand Fees - About 7% of the fees are paid to Visa, MasterCard and Discover. Like interchange, the Card Brand Fees are exactly the same for all credit card processors and no processor can give you a lower rate or a better deal on assessments.  The Card Brand Fees are Dues & Assessments, Access Fees (NABU or NAF), Visa FAN and MC License Fee.

3.    Account Management Fees - The remaining 11% of the fees are paid to the processor for the authorization, processing and settling of each batch, as well as reporting, fraud control, technical support and customer service.  This is the Authorization Fee, Monthly Account on File Fee and the enhancement.

4.   PCI Fees:  The last group of fees are PCI fees, which are paid to the third party provider for Breach coverage, and managing your compliance work.     

If you have any fees on your statement that you have a question about, give me a call.  I'm happy to help you figure it out.