Since interchange is the largest portion of credit card processing fees, it's worthwhile to dig into the effect of MCC on interchange. I'll go through the finer points of MCCs below. What is a merchant category code? A merchant category code (MCC) is a four-digit number assigned to a business by an acquiring bank or institution when the busines...

An acquiring bank is named for the role it plays in credit card processing. Acquiring banks accept or 'acquire' credit card transactions from banks that issue credit cards to consumers, called issuing banks. An acquiring bank maintains a merchant account for each business it services. A merchant account is an open line of credit that allows the ac...

This article explains what a basis point is, how to calculate fees using basis points, and finally the role basis points play in credit card processing — specifically having to do with a processor's markup. What is a basis point? A basis point is a unit of measurement that is equal to 1/100 of one percent, or 0.01%. A basis point expressed numer...

But there are other factors that make Square a good choice, leaving PayPal behind. So, which one is right for your business? Here's how the two compare. Just looking for the facts on Square? Check out our Square review. NOTE: In April 2023, PayPal Here was discontinued and became PayPal Zettle or Zettle by PayPal. We're leaving this comparison he...

A cardholder's issuing bank sends a retrieval request to the processing bank. Then the processing bank sends the request to the business. At this point a processor will assess a retrieval fee. A retrieval request does not involve the refund or reversal of a transaction. A reversal is only initiated if a chargeback occurs. Since retrieval fees ar...

Intuit is best known as the maker of the popular QuickBooks accounting software, and as the provider of the GoPayment mobile processing application. If the company's credit card processing keeps going as it is, Intuit will also become known for exorbitant credit card processing charges and excessive downgrades. In this article, we'll briefly rev...

NOTE: As of April 2023, PayPal Here is no longer available by that name; it will be converted to PayPal Zettle. We're leaving this article for historical accuracy. With the Here mobile option PayPal takes direct aim at Square — the market leader in the smartphone credit card processing space. Square has a few things to worry about, too, not the...

Enhanced Merit 3 is a Mastercard interchange category. Interchange fees are essentially the wholesale cost of credit card processing and generate income for banks that issue credit and debit cards. The word "Enhanced" refers to the type of credit card, and "Merit 3" refers to how the card is accepted and processed. The Enhanced MasterCard card cat...

Effective April 13, 2012, Visa began charging a Transaction Integrity Fee (TIF) of $0.10 on transactions involving Visa debit and prepaid cards that do not meet CPS requirements (more on this later). The Transaction Integrity Fee will not apply to Visa credit card transactions. Transaction Integrity Fee The TIF will not affect a large number of...

Visa charges the Fixed Acquirer Network Fee, often abbreviated as FANF, for credit card acceptance. The fee went into effect in 2012, but has undergone several changes since then. Unlike some other assessment fees, the FANF is not a set cost. It varies based on factors including processing method, sales volume, and number of business locations. ...