Credit Card Processing

Basis Points – The Basis for Fees

Ben Dwyer
by Ben Dwyer

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…

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The term basis point is thrown around a lot in the credit card processing industry, but many sales people fail to realize that most people aren’t quite sure exactly what a basis point is, or what it means in terms of credit card processing fees.

dollar signs

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Credit Card Processing

Mobile Showdown: PayPal Here Vs. Square 2019

Ben Dwyer
by Ben Dwyer

The battle for the micro mobile market heats up as PayPal Here enters the ring in direct competition with Square.

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PayPal Here has taken the mobile payments market by storm with a smartphone processing solution that in several ways gets the better of the current market leader, Square.

PayPal Here Versus Square

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Credit Card Processing

What is a Retrieval Fee?

Ben Dwyer
by Ben Dwyer

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

Ben Dwyer
by Ben Dwyer

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

Ben Dwyer
by Ben Dwyer

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

Ben Dwyer
by Ben Dwyer

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.

Visa Transaction Integrity Fee

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Credit Card Processing

Fixed Acquirer Network Fee (FANF) Visa

Ben Dwyer
by Ben Dwyer

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

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Visa’s Fixed Acquirer Network Fee (FANF), previously called the Network Participation Fee (NPF), is a monthly fee that affects all businesses to a varying degree.

Visa FANF

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