Credit Card Processing

What is a Retrieval Fee?

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…

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A retrieval fee is charged when a customer or the customer’s issuing bank requests a copy of a sales draft in order to substantiate a transaction. This is called a retrieval request, and most credit card processors charge a nominal retrieval fee to process a request.

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Credit Card Processing

PayPal Here Credit Card Processing

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 least of which is PayPal Here’s slightly lower pricing and the more accessible phone support for prospective and existing customers. Pricing Swiped…

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Micro merchants and businesses that need to accept credit card payments while on the go have several smartphone credit card processing options to choose from. In addition to Square and Clover Go, one of the big players is PayPal Here, a service that allows iPhone, iPad and Android users to accept credit card payments through their mobile device.

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Credit Card Processing

Enhanced Merit 3

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…

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Enhanced Merit 3 is a MasterCard interchange category.

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Credit Card Processing

Transaction Integrity Fee (TIF) Visa

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 Details of the Transaction Integrity Fee Transaction Integrity…

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In 2012, Visa added a Transaction Integrity Fee to its list of charges for accepting a Visa credit card at a business.

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Credit Card Processing

Fixed Acquirer Network Fee (FANF) Visa

Visa’s new Fixed Acquirer Network Fee increased credit card processing fees across the board.

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Effective April 1, 2012, Visa began charging a Fixed Acquirer Network Fee (FANF), previously called the Network Participation Fee (NPF). The FANF is a monthly fee that will affect all businesses to a varying degree.

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Credit Card Processing

Merit 3 MasterCard Credit Card Processing Fees

Merit 3 is MasterCard fancy way of referring to a card-present transaction. Merit 3 can actually apply to several different interchange categories based on card brand, type and qualification. Merit 3 (or Merit III) is a MasterCard interchange qualification for credit and debit card processing fees. A Merit 3 transaction is settled within one day…

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Merit 3 (or Merit III) is a MasterCard interchange qualification for credit and debit card processing fees.

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Credit Card Processing

1.54% “Flat Wholesale Rate”

I have a question about a specific company – [removed to protect the guilty]. They are saying the rate they can provide is 1.54% on qualified and mid-qualified cards (“flat wholesale rate”). The only other rate is “up to 4.61%” on non-qualified cards. Then they charge a three-cent credit card transaction fee and no basis…

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Sometimes it’s easier to explain pitfalls in credit card processing by using real situations our clients have encountered. The 1.54% “flat wholesale rate” is one example.

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