What are Interchange fees?
Represent a small percentage of the dollar value; reimburse the issuer for the risk of loss (fraud and credit losses) and the cost of processing the transaction. The interchange fee makes it possible for issuing banks and acquiring banks around the world to exchange transactions and settle financially on a standardized and consistent basis.
What is a discount rate?
A discount rate is a fixed rate that is deducted from a purchase when a sale is processed.
Are there different types of discount rates?
There are many different types of discount rates depending on how a merchant account rate plan is structured. The most common discount rates, which are part of a tiered rate plan, are Qualified, Mid-Qualified and Non-Qualified. Tired rate plans can have as many as six discount rates. Other rate plans, such as Interchange Cost Plus structures, have only one discount rate.
What is a transaction fee?
A transaction fee is a applied to each transaction that is processed through a merchant account. This fee is not affected by the size of the transaction. Typically, credit cards and debit cards have different transaction fees.
What is a batch "header" fee?
This fee applies each time a group (or batch) of transactions are transmitted for settlement. Settlement, also known as closing, is typically performed at the end of each business day.
What is a chargeback fee?
A chargeback fee is charged when a chargeback is processed against an account. A chargeback is most commonly a credit card transaction that is billed ("charged") back to the merchant after the sale has been settled. It is always initiated by the bank that issued the card which the cardholder used to pay for their purchase. The chargeback fee covers the administrative work involved in handling the chargeback process.
What is a retrieval fee?
A retrieval fee is charged when a retrieval is processed against an account. A retrieval request occurs when a card issuer requests a copy of the transaction information document, a sales draft, or a terminal receipt of a payment transaction. This is typically performed based on an inquiry from the issuer's cardholder. The retrieval fee covers the administrative work involved in handling the retrieval process.