COMPONENTS OF TRADITIONAL CREDIT CARD PROCESSING” (3+) Value Added Fees - Gateway Fees - ACH Fees - Ancillary Fees - +++ ? FEES + Interchange Rates Network Fees + = 1 1 2 3 + $1,844 / Month = 1.65% + $0.10 Wholesale Cost of Acceptance ( 1.65% + $0.10 ) + ( 0.12% + $0.02 ) = 1.78% + $0.12 1.78% + $0.12 + (0.10% + $0.05) + $180 Ex: $80,000/month $40 Average Transaction (average for rewards card) 0.12% + $0.02 Interchange Rates Network Fees Acquirer Fees % and/or $ Ex: 0.10% + $0.05 = $180 Over Cost 2 3 Acquirer Fees The National Retail Federation said,…”card company fees are the problem and the surcharge story is a volume that belongs on the fiction aisles. The real threat to retailers and their customers continues to be price-fixed hidden fees that can only be cured by transparency and competition”
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COMPONENTS OF TRADITIONAL CREDIT CARD PROCESSING” (3+)
Value Added Fees - Gateway Fees - ACH Fees - Ancillary Fees - +++ ? FEES