20% for sure. If not at least double or triple that.
Are you on about APR on personal credit cards? If so, then it's usually around 20%. Not sure how much merchants get charged but I don't think it's much, but it adds up quickly.
Topic: What is the average processing fee for a credit card transaction? (Read 1223 times)
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Are you on about APR on personal credit cards? If so, then it's usually around 20%. Not sure how much merchants get charged but I don't think it's much, but it adds up quickly.
January 25, 2014, 12:47:22 PM
20% for sure. If not at least double or triple that.
What?
There's no way it's that much. I think it'll be around 5%. 
January 25, 2014, 12:33:06 PM
Weekend bump, vote vote vote!
January 22, 2014, 01:02:56 AM
There is no standard rate, it varies significantly from one processor to another and one merchant risk profile to another. Walmart (massive volume, card present=swiped, low fraud rate) probably secures custom deals for an interchange below 1%.
On the other hand an adult services company (low volume, card not present, high fraud rate) can end up paying 10% or more. Throw in the cost of anti-fraud screening, and the cost of chargebacks (getting hit with $35 chargeback fee when your average purchase is <$35 is going to hurt your bottom line), the true cost can approach 15% or more.
There's also the fixed fee many apply, either in the form of membership/subscription fees or possibly fixed-cost fees (usually called "transaction fees") added on top of the percentage-based fee. You can factor in the cost of hardware and training, too. It's hard to determine an "average" without a shit-load of data and a team of people going through it. You're probably looking at 2.5% on the very low side, 20%+ on the very high side if a merchant deals in low-value transactions (US). I'd guess it probably averages to around 4-6% after all's said and done (if not, higher). On the other hand an adult services company (low volume, card not present, high fraud rate) can end up paying 10% or more. Throw in the cost of anti-fraud screening, and the cost of chargebacks (getting hit with $35 chargeback fee when your average purchase is <$35 is going to hurt your bottom line), the true cost can approach 15% or more.
January 22, 2014, 12:54:52 AM
There is no standard rate, it varies significantly from one processor to another and one merchant risk profile to another. Walmart (massive volume, card present=swiped, low fraud rate) probably secures custom deals for an interchange below 1%.
On the other hand an adult services company (low volume, card not present, high fraud rate) can end up paying 10% or more. Throw in the cost of anti-fraud screening, and the cost of chargebacks (getting hit with $35 chargeback fee when your average purchase is <$35 is going to hurt your bottom line), the true cost can approach 15% or more.
On the other hand an adult services company (low volume, card not present, high fraud rate) can end up paying 10% or more. Throw in the cost of anti-fraud screening, and the cost of chargebacks (getting hit with $35 chargeback fee when your average purchase is <$35 is going to hurt your bottom line), the true cost can approach 15% or more.
January 22, 2014, 12:48:06 AM
I voted 4% to 6% though I honestly have no clue.
From what I understand, and I could very well be wrong, don't they charge a small base fee (say $1-$2) and then a percentage on top of the base fee?
From what I understand, and I could very well be wrong, don't they charge a small base fee (say $1-$2) and then a percentage on top of the base fee?
January 21, 2014, 11:27:02 PM
20% for sure. If not at least double or triple that.
January 21, 2014, 11:06:15 PM
Hello,
Long story short I got into an argument with a few friends over a beer last night and we had a disagreement over what the average merchant pays in transaction fees when they accept credit card payments.
I'm trying to figure out what the common perception is.
Optional
Reply to this post saying where you are
Argue for or against including chargebacks and other incidentals in the overall fee
Tell me what you think the average chargeback rate is (for a specific industry or in general)
Feel free to add anything else!
Long story short I got into an argument with a few friends over a beer last night and we had a disagreement over what the average merchant pays in transaction fees when they accept credit card payments.
I'm trying to figure out what the common perception is.
Optional
Reply to this post saying where you are
Argue for or against including chargebacks and other incidentals in the overall fee
Tell me what you think the average chargeback rate is (for a specific industry or in general)
Feel free to add anything else!
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