Psalm22
Posts: 93
Joined: 4/18/2005
From: It's actually a summer this year!
Status: offline
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There are many components to what a merchant pays when accepting a credit card or debit card, including:
1) A per transaction fee, usually a set amount.
2) A percentage fee. The percent often varies depending upon monthly volume. High volume = lower percent. Usually term the discount fee.
3) If the card number is keyed manually, there is a higher fee than if it is swiped.
4) A monthly fee to even have the ability to accept the cards to start with, usually termed the interchange fee.
5) There may be a monthly minimum, too, if not enough business is transacted.
Some processors will have even more types of fees. All in all, the fees are, on average, about 3.5% of the monthly transaction activity for Visa/MasterCard. Discover and Amex can run even higher, like 4% - 4.5% based on what I've seen auditing business records.
We are paying for those costs in the prices we pay for goods & services. We as consumers just don't see it stated as a component of the price.
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And the Spirit and the bride say, "Come!" And let him who hears say, "Come!" And let him who thirsts come. Whoever desires, let him take the water of life freely. Rev. 22:17
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