Credit card processing, like all fees can be confusing. The key to understanding these fees is to understand what they are and how they are applied. Most fees for services are easy to understand and identify - for example, membership fees, minimum balance charges and other charges. When dealing with more complicated fees, it is sometimes necessary to seek the advice of a professional. Below are some of the more common fees that may be found on your credit card or checkbook.
These fees are paid by the credit card processors for the credit card processing services they provide to their customers. Typically, these fees are less than one cent per transaction. They usually apply to debit and credit card transactions. Generally, checkout charges be anywhere from two to five cents per transaction - you can find bank-wide fee schedules in the bank's financial institution operations guide or at the Annual Credit Card Company (ACPC) website. In addition, most Microsoft Dynamics 365 Business Central Credit Card Processing processors offer special deals and discounts to cardholders who pay with a debit card, such as MasterCard, Visa, Discovery and American Express.
Many businesses use an authorization system when processing debit cards. Authorizations are granted using either a PIN number or EIN, which is an Employer Identification Number. Banks and other institutions charge a monthly or annual fee for this service. The amount may be reduced if the customer indicates that they will pay with a debit card and not a credit card.This type of fee is charged when a merchant has to hold the money for the purpose of paying for items bought. All Microsoft Dynamics Business Central Credit Card payments work only when the customer gives authorization to process payments and the money for the purchases is held until the total is paid for. Payment holds can cause transaction delays, so it is important that merchants understand their processing fee and the reasons why they may be assessed.
Another method of credit card processing works with merchants and consumers by allowing the processor to charge a fee for each sale. The charges are fixed and it is based on the percentage of the sale price. There are several factors that go into setting the fee schedule for merchants. The volume of sales and the average dollar value of each sale are two factors that will affect the fee. Other things that are considered are the type of merchandise sold and the average transaction cost per cardholder.Most businesses that process credit card payments work with a merchant bank that issues them a merchant account. Many businesses also work with an issuing bank, which holds the merchant account, but does not process the cards. The issuing bank typically accepts credit card transactions for business expenses and charges them separately from the merchant account. To get a detailed overview of this topic, see here: https://en.wikipedia.org/wiki/Payment_card_industry.
