Payment Processing Fee

Payment processing fees are costs associated with accepting and processing various forms of payment, particularly credit card transactions. These fees are typically charged to the merchant and can impact pricing and profit margins.

Common components of processing fees:

• Interchange fees (paid to card-issuing banks)
• Assessment fees (paid to card networks)
• Payment processor markup
• Per-transaction fees
• Monthly service fees

Understanding processing fees is crucial for businesses to accurately calculate their costs and set appropriate pricing strategies.