Merchant Provider Credit Card Rates and Fees

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Posted: Wed Jan 12, 2005 10:53 pm
Post subject: Merchant Provider Credit Card Rates and Fees
Kamal Cheema
Date: 8/15/2000 8:54 am CDT

I would like to know more about credit card commission and also credit card commission reduction. i would like to know who benefits the most from commission, and per transcation what cost/percent of this commission is? Is it likely that in the future commission rates will be reduced and if so how? What does this all mean for on-line purchasing with credit cards?

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archive
Posted: Wed Jan 12, 2005 10:54 pm
Post subject: Merchant Provider Credit Card Rates and Fees

Board Monitor - CA
Date: 8/16/2000 6:20 pm CDT

Kamal,

Thanks for your post! I am not sure I understand all of your questions, but will try to address some of your questions. The bank that issues your card earns a commission each time you use your card to make a purchase. This commission usually translates into 2.5%-5% of the price of your purchase depending on various factors. You can find a more detailed explanation at the following web site (look for the subheading entitled "Understanding your merchant provider’s rates and fees").

http://www.internetact.com/how-credit-card-processing-works-2.htm


Hope this helps!

Best Regards,
Curtis Arnold
P.R. Director
CardRatings.org