Payment Processing Fees: The Types of Fees Involved

If you are running a business, customers will be paying you in either of the following ways:

  • In cash
  • Through a credit card or debit swiped through a terminal
  • Through a credit card or debit card transaction via clovers
  • Through online transactions via phone, using a credit or debit card

There is technically only one of the above ways in which there is no extra processing fee involved, apart from taxes, and that’s upfront payments in cash. 

The rest of the payment and transaction methods are mediated by credit card companies and other companies, which leads to additional costs. 

One of these additional costs is the payment processing fee, which is the fee your business has to pay to a credit card company every time a customer pays you via a debit or credit card. 

Types of Payment Processing Fees

There are usually three types of payment processing fees, but they all boil down to the simple fact of the rate charged per transaction: 

The three types of processing fees are:

  • Interchange Fees

These are the fees that your business bank has to pay to your customers’ bank every time a transaction happens. The purpose of these fees is to avoid fraudulent transactions risks of online and online transactions, as well as to maintain and support handling costs. You have to pay these fees because they are non-negotiable.

However, for every transaction and every business, this fee may not be the same. Here are the factors that may affect the rate of interchange fees:

  • The type of your business and industry
  • The type of cards the customers use
  • The payment acceptance methods
  • The amount of the sale


  • Assessment Fees

These are fees charged by card companies in return for offering them the service of using their card brand. The costs of processing transactions of the payment network are included in it. Although they are typically lower than interchange rates, they are also one hundred percent non-negotiable. 

Learn how to become a payment processor, grasp the whole payment landscape. Study diverse payment methods and systems extensively. Obtain the necessary licenses and adhere to strict regulations. Develop robust payment solutions for seamless transactions. Add whole services like fraud protection and dispute resolution to enhance customer trust. Collaborate with merchants and financial institutions to establish partnerships. Market your expertise effectively for business growth. Stay updated on industry advancements to maintain a competitive edge.
  • Payment Processor Markup Fees

Of course, the card companies have to earn money, and this is where they earn from. They incur a markup fee on customers, which is simply a certain margin on each transaction. This helps the company run its operations and make money. This is the only processing fee that is negotiable but to a certain extent. 


If you are running a business, you should thank credit card companies for making payment transactions easier for you, which helps you get more customers and increase your sales. However, you may not be very happy about the payment processing fees and other fees that you have to incur. 

Well, in that case, you should seek out nordex merchant processor solutions that will make your business grow even more by reducing your online transaction and processing fees up to 25% and even more. 

You may also like...