Network Acquirer Processing Fee

What is the Network Acquirer Processing Fee?

Network Acquirer Processing fee is a charge that is used by credit card companies to ensure protection for both the customers & credit card companies.

Network acquirer processing fee are charged on every transaction made through Visa/MasterCard, this fee depends on the type of business, size of business etc connected to the merchant acquiring bank.

Typically, network acquirer processing fee is around 3% of the transaction amount.

Network acquirer processing fee varies from country to country, in most countries it ranges between 1-5%.

For example: A merchant in Canada who sells a product for $100 has a Network acquiring processing fee of 2.25$ ([100*0.03]). So in the end customer pays $102.25 for a product that is priced $100, but there is still one more fee coming to play: interchange fees which we’ll discuss later on.

Network acquirer processing fee is charged by credit card companies to pay bank’s who’s running the payment network and other costs such as risk management and brand marketing.

What are the different types of Network acquiring processing fee?

Network acquirer processing fee is charged by credit card companies based on the type of business connected to them, typically there are two types of network acquirer processing fee: Interchange Fee & Merchant Service Charge.

Interchange fee typically ranges between 1-4% and is charged by credit card companies to pay the banks who runs the payment network.

Merchant Service Charge is typically fixed and doesn’t change from time to time, this fee varies from country to country and also based on business type & size etc.

For example: In Canada Merchant service charge for a restaurant is 3% of the transaction amount while it’s 2.4% for a bookstore.

What are the different types of Network acquiring processing fee?

Network acquirer processing fee is charged by credit card companies based on the type of business connected to them, typically there are two types of network acquirer processing fee: Interchange Fee & Merchant Service Charge.

Interchange fee typically ranges between 1-4% and is charged by credit card companies to pay the banks who runs the payment network.

Merchant Service Charge is typically fixed and doesn’t change from time to time, this fee varies from country to country and also based on business type & size etc.

For example: In Canada Merchant service charge for a restaurant is 3% of the transaction amount while it’s 2.4% for a book store.

Merchant service charge is minimal but expensive in countries such as United States where interchange fee rates are high. For example: In U.S A restaurant pays 3-5$(interchange fees) on a 100$ sale + 3%(merchant service charge) which totals to be 3.03$. So in the end customer pays $103 for a product worth $100 and finally there is processing fee on top of that if it’s not included in the sale price.

Total
0
Shares
Previous Post
network access and brand usage fee

What is Network Access and Brand Usage Fee?

Next Post
misused authorization fee

What is the Misused Authorization Fee?

Related Posts