A Per-Transaction Fee is a charge that a merchant’s bank (i.e. acquiring bank) pays to the customer’s bank (i.e. issuing bank) as part of the interchange fee process during a credit card transaction.
This fee is typically a fixed amount for each transaction regardless of the transaction value, however, it can also be a percentage of the transaction value or a combination of a fixed amount and a percentage.
Per-transaction fees are one component of the overall cost of accepting card payments, which also includes the interchange fee, the assessment fee, and the payment processor’s markup. The exact amount of the per-transaction fee can vary depending on various factors, including the following:
- the type of card used
- the type of transaction (e.g. in-person, online, etc.)
- the merchant’s industry
Merchants should carefully review and understand all the fees associated with accepting card payments to ensure they are getting the best possible rates.