Understanding transaction fees helps you manage costs and choose the right payment solutions. This article explains the common types of fees associated with payment processing.
Common Transaction Fees
- Authorization Fee: Charged each time a payment is authorized, typically a small fixed amount.
- Processing Fee: A percentage of the transaction amount, usually combined with a fixed fee (e.g., 2.9% + $0.20 per transaction).
- International Payments: If your customer’s card is issued outside your country, an extra percentage is added to cover the cost of cross-border processing. +1.49%
- Currency Conversion Fee: Additional charges for currency conversion +1%.
- Chargeback Fee: $20 USD Applied if a customer disputes a charge and initiates a refund through their bank.
- Refund Fee: $1 USD Charge a fee when you refund a transaction.
- Monthly or Platform Fees: Subscription or service fees that may apply depending on your pricing plan.
How Fees Are Calculated
Fees may vary based on:
- Payment method (credit card, debit card, ACH, digital wallets)
- Transaction type (card-present vs. card-not-present)
- Merchant account type and pricing plan
- Currency and cross-border factors
Tips to Manage Fees
- Use lower-cost payment methods like ACH for large transactions.
- Encourage card-present or contactless payments to reduce risk and fees.
- Monitor chargeback rates to avoid additional costs.
- Choose a pricing plan that fits your business volume and needs.
Questions?
Contact our billing support team for detailed fee breakdowns and personalized advice.
For a full list of merchant processing fees, please visit: Merchant Fees
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