Discover Network Authorization Fee
The Network Authorization Fee is an assessment charge that applies to all Discover authorization transactions. As of 2018, the fee is set at $0.0025.
The Network Authorization Fee was implemented in 2013 and replaced the Data Transmission Fee, which applied to fewer transactions. The Network Authorization fee is often charged in tandem with the Discover Data Usage Fee. However, some processors only list one or the other.
- What are assessment fees?
- Network Authorization Fee
- Difference Between the Network Authorization Fee and Data Usage Fee
- Locating the Network Authorization Fee
- Can I lower assessment fees?
What are assessment fees?
In credit card processing, assessment fees are one of three components of the total cost of a transaction. The other two are interchange fees and processor markup. Assessment fees are the component of cost set by and remitted to the credit card brand itself, meaning the Discover Network Authorization Fee goes to Discover.
Assessment fees are non-negotiable, and the same for everyone. However, some processors may “pad” the fees in order to make more money while making it look like the fees are out of their hands. Be sure to find a credit card processor that passes assessments to you at cost.
Network Authorization Fee
As of 2018, the Network Authorization Fee is $0.0025 for authorized Discover transactions. The Network Authorization Fee is often charged in conjunction with the Data Usage Fee, but your processor may only charge one or the other.
Difference Between Network Authorization Fee and Data Usage Fee
Discover has two fees – the Network Authorization Fee and Data Usage Fee – that sound very similar. The Network Authorization fee applies to all transactions that are authorized on Discover’s network, while the Data Usage Fee refers to sending data over the Discover network and is charged for that.
You may be charged both the Network Authorization Fee and the Data Usage Fee on the same transaction. It’s also possible to be charged one fee and not the other, or for a processor to call the fees different things.
For example, the statement snippet below shows charges for both the Network Authorization Fee and the Data Usage Fee, but it refers to the Data Usage Fee as a “Network Fee.”
Locating the Discover Network Authorization Fee
The Discover Network Authorization Fee may or may not be charged or listed on your statements. If you’re on an interchange plus or tiered pricing model, you’ll be able to see the fee if charged and listed. On a flat rate processing statement, you will not see assessments broken out.
The Network Authorization Fee will be located with other fees. In the snippet example below, both the Data Usage Fee and Network Authorization Fee are charged.
While the Network Authorization Fee could be charged on a statement where the Data Usage Fee is not charged, it’s somewhat more common to see it the other way. Meaning, a business may see the Data Usage Fee and not the Network Authorization Fee. In the statement below, we see the Data Usage Fee listed, but not the Network Authorization Fee.
Can I lower assessment fees?
No. Assessment fees are non-negotiable. However, it may still be possible to lower your overall credit card processing costs. At the beginning of this article, I mentioned that there are three components of credit card transaction costs: interchange, assessments, and processor markup. The first step to lowering costs for most businesses is to secure a more competitive processor markup. You can do that easily using CardFellow’s free quote comparison tools.
You’ll get instant, fully-disclosed quotes from leading processors to review at your convenience. If you need help comparing the quotes to your current processing, CardFellow’s experts are on hand to answer questions. It only takes 2 minutes to get quotes, and there’s no obligation. Try it now!