Credit Card Processing Fees

Despite popular belief, credit card processing fees are not difficult to understand. It is imperative that you understand all the fees and know why you are being charged. It is not uncommon to hear talk of negotiable fees. While these fees exist, it is important to note that you cannot negotiate all the fees.

The biggest fee for processing credit card transactions is called the discount rate. It is the retail cost of processing credit cards and includes base costs and markups. Base costs usually make up 75% of the fees while markups make up about 25%. Keep in mind that these percentages are estimates and actually values may be slightly higher or lower.