Home » Business Tips » Processing Fee Definitions. A resource guide for Visa, Master Card, Discover fees.

Processing Fee Definitions. A resource guide for Visa, Master Card, Discover fees.

 

Here is a quick list of fees and their definitions you will see on your card processing fee statement. Please print out or re-visit this site/blog if you have a question on what a certain fee may be listed on your statement.

  • Visa

      • .11%Debit Assessment – This assessment applies to gross Visa debit transaction volume.
        .13%Credit Assessment – This assessment applies to gross Visa credit transaction volume.
        Note:On January 2015, Visa raised its assessment on credit volume from 0.11% to 0.13%.
      • $0.0195Acquirer Processing Fee (APF) – Credit
        The Acquirer Processing Fee applies to all U.S.-based credit card authorizations acquired in the U.S. regardless of where the issuer/cardholder is located. If your business is based in the U.S., the acquirer processing fee will apply to all Visa credit card authorizations.
      • $0.0155Acquirer Processing Fee (APF) – Debit
        On April 1, 2012, Visa began charging a separate lower APF of $0.0155 for transactions involving a debit card.
      • Transaction Integrity Fee (TIF)
        Effective April 13, 2012, Visa will begin charging a Transaction Integrity Fee (TIF) of $0.10 on transactions involving Visa debit and prepaid cards that do not meet CPS requirements.
      • VariableFixed Acquirer Network Fee (FANF)
        Effective April 1, 2012, the FANF is a monthly fee that varies based on processing method, number of locations and volume. See the Fixed Acquirer Network Fee calculator to determine the FANF for your business.
      • $0.0025Settlement Network Access Fee — Also called a Visa Base II Fee
        Applies to all U.S.-based settlement transactions. If your business is based in the U.S., the settlement network access fee will apply to all Visa settlement transactions.

        • Note:
          The Settlement Network Access Fee (Visa Base II Fee) and Acquirer Processing Fee will both apply to the vast majority of credit card transactions for U.S.-based businesses bringing the total fee to $0.022
      • $0.0047Kilobyte (KB) Access Fee
        Visa’s kilobyte fee is charged on each authorization transaction submitted to Visa’s network for settlement.
      • $0.045Misuse of Authorization Fee
        The Misuse of Authorization Fee applies to Visa authorizations that are not followed by a matching clearing transaction (or in the case of a cancelled or timed out authorization, not properly reversed).
      • $0.10Zero Floor Limit Fee
        Visa’s Zero Floor Limit applies to cleared transactions that can’t be matched to a previously approved or partially-approved authorization. In short, it applies to settlement transactions submitted without a proper authorization.
      • $0.025Zero Dollar Verification Fee
        The Zero Dollar Verification fee applies to Zero Dollar Verification messages (approved and declined). Zero Dollar Verification messages include the verification of the card account number, address verification (through AVS), Card Verification Value 2 (CVV2) and Single Message System (SMS) acquired Account Verification authorizations. The Visa Misuse of Authorization Fee does not apply to these requests. The fee applies when you want to verify a cardholder’s information without actually authorizing an amount of their card.
      • .40%International Service Assessment Fee
        The International Service Assessment Fee applies to U.S. acquired transactions paid for with a card issued outside of the U.S.
      • .45%International Acquirer Fee
        The International Acquirer Fee applies under the same circumstances as the International Service Assessment Fee noted above
    • EIRF – A down grade when transaction information doesn’t match up with the card. Usually occurs with keyed in accounts where the merchant fails to enter address, Zip code, CVV Code, or any other information prompted for. Also not closing a batch within 48 hours of authorization will also throw all the transactions into this downgraded category.
  • MasterCard

      • .12%Assessment (Transactions less than $1,000)
        The assessment applies to gross MasterCard transaction volume.
        On January 2015 — MasterCard increased its assessment by 0.01% on all signature debit and credit transactions with an amount of $1,000 or less from 0.11% t0 0.12%.
      • .13%Acquirer Brand Volume Fee (Transactions greater than $1,000)
        Note: Effective January 15, 2012 MasterCard’s Acquirer Brand Volume Fee increased from 0.12% to 0.13%. This assessment applies to consumer and business credit volume on transactions of $1,000 or greater. This assessment does not apply to signature debit transactions regardless of size.
      • .01%Digital Enablement Fee – Effective January 2015, MasterCard will begin charging a Digital Enablement Fee. This fee will be assessed on MasterCard card-not-present sales volume involving signature debit, consumer credit and commercial credit transactions.
      • $0.0195Network Access and Brand Usage Fee (NABU)
        Update: Effective January 8, 2012 the NABU fee will apply to U.S.-based authorization transactions regardless of whether the transaction is settled. Prior to January 8, 2012 the Network Access and Brand Usage Fee applies to all U.S.-based settled transactions.
        Update: Effective June 30, 2013 the NABU fee will be increased to $0.0195, and it will apply to both authorization and refund transactions.
      • $0.0044Kilobyte (KB) Access Fee
        MasterCard’s kilobyte fee is charged on each authorization transaction submitted to MasterCard’s network for settlement.
      • .0045%Acquirer License Fee (ALF)
        Effective April 2012, MasterCard will begin charging 0.0045% as an Acquirer License Fee assessed on gross MasterCard processing volume. This fee is also referred to by several processors as a License Volume Fee.
      • .40%Cross Border Assessment Fee (Domestic)
        The domestic Cross-Border Assessment Fee applies to U.S. acquired transactions paid for with a card issued outside of the U.S. and settled in USD.
      • .80%Cross-Border Assessment Fee (Foreign)
        The foreign Cross-Border Assessment Fee applies to international transactions settled by U.S.-based merchants in a currency other than USD.
      • .85% – Acquirer Program Support Fee (Increased to 0.85% from 0.55% on April 1, 2013)
        The Acquirer Program Support Fee applies under the same circumstances as the Cross-Border Assessment Fee (Domestic) noted above.
      • $0.0075AVS Fee (Card-Not-Present)
        MasterCard charges a fee each time a merchant access the address verification service when processing a transaction. MasterCard’s AVS fee is a little higher for card-not-present merchants than it is for card-present merchants. MasterCard’s AVS for card-present businesses is listed just below.
      • $0.005AVS Fee (Card-Present)
      • $0.0025Card Validation Code Fee Effective October 21, 2013, MasterCard will implement a Card Validation Code 2 (CVC2) transaction fee of $0.0025. This fee will be charged on transactions acquired in the United States with the CVC2 (three digit code on the back of the customer’s card) included in the transaction for authorization and the CVC2 response value equals ’M’ (Match) or ’N’ (Invalid/did not match). The fee will not apply to Account Status Inquiry (ASI) requests.
      • $0.025Account Status Inquiry Fee
        The account status inquiry fee is charged for transactions where a merchant does actually authorize an amount on a cardholder’s account, but instead, validates aspects of her account. Account status inquiry transactions may include requests for address verification service (AVS), card validation code (CVC2), or both. MasterCard implemented the account status inquiry service on June, 14 2011 in place of support for AVS-only transactions.
      • $0.055Processing Integrity Fee (Card-Present, Card-Not-Present, No reversal)
        Effective June 14, 2011 MasterCard began charging acquirers a Processing Integrity Fee of $0.045 to encourage merchants to abide by proper transaction authorization standards. MasterCard increased the Processing Integrity Fee by $0.01 to $0.055 on November 1, 2011. The Processing Integrity Fee will apply in the following instances:

        • Card-present: Transactions are not settled, cleared, or reversed within 24 hours of the original authorization transaction/request
        • Card-not-present: Transactions are not settled, cleared, or reversed within 72 hours of the original authorization transaction/request
        • No reversal: An authorization transaction cannot be matched to a corresponding settlement record after a period of 120 days
        • Exempt merchants: Travel and entertainment merchants classified as MCC 3351-3441, 3501-3999, 4411, 7011 and 7512 are exempt from the Processing Integrity Fee
        • Standard or Standard EIRF – Merchant failed to match or key in all requested information including address, Zip, CVV, etc. Also occurs when merchant fails to settle or batch within 48 hours of authorization. Also will occur with Business Cards that request further info. Make sure you are getting the info into the POS or terminal.

  • Discover

    • 0.105%Assessment
      The assessment applies to gross Discover card transaction volume.
      Update: On April 13, 2012, Discover’s assessment increased from 0.10% to 0.105%.
    • $0.0185Data Usage Fee
      The Data Usage Fee applies to all U.S.-based authorization transactions.
    • $0.0025Network Authorization Fee
      Discover will begin charging a Network Authorization Fee effective October 1, 2013. This fee will apply to all Discover network authorizations and will replace the previously assessed Data Transmission Fee, which applied only to settled Discover transactions. The amount of the Network Authorization Fee and the Data Transmission Fee are the same, but the Network Authorization Fee will apply to a greater number of transactions.
    • $0.0025Data Transmission Fee (No longer charged)
      The Data Transmission Fee applied to all settled Discover transactions, and was replaced by the Network Authorization Fee is October 2013.
    • .40%International Processing Fee
      The International Service Fee applies to U.S. acquired transactions paid for with a card issued outside of the U.S.
    • .55%International Service Fee
      The International Service Fee applies under the same circumstances as the International Processing Fee noted above.

Other fees to watch for;

Annual Fee – Can be $59 – $199 Often charged annually and you will not see until after it has been deducted from your bank account

Monthly Statement Fee – up to $30

Monthly Minimum Fee – up to $50

Account/Service fee – up to $20

PCI Compliance – up to $20 per month or often charged annually and taken from your account each year automatically and you will not see it has been deducted from your bank account until afterwards.

Gateway Fee – up to $35 usually associated with an ecommerce or Virtual Online Terminal account.

Batch Settlement Fee – a daily fee that varies from $.05 to $.50. Always the same no matter how many transactions you authorized that day.

There are also some other variations of card processing fees not listed here. But this give you a source and reference page to refer to if you need help.

And as always you may email me with any questions at info@ignitepaymentstechnologies.com

Or visit my website www.northernairmerchantservices.com

 

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