Fees and Assessments

Interchange and Assessments rates are set by Visa, MasterCard, American Express, and Discover Card (“Card Associations”), and the rates do not vary among payment processors and merchant service providers.

Interchange rates are set by the Card Associations and consist of a long list of different discount (percentage) and per-transaction fees. The difference in fees are based on, but not limited to, factors such as: card brand and type of credit, debit, or commercial card used, type of transaction ( e.g. online, in-store, phone order, etc.), merchant’s industry category, and the size of the organization accepting the credit card transactions.  Assessment fee rates are also set by the Card Associations and vary based on card brand.

Interchange fees are paid to banks that issue credit cards. Assessment fees are paid directly to the Card Associations.

Click the links below to learn more about interchange and assessments.

https://usa.visa.com/support/small-business/regulations-fees.html

https://www.mastercard.us/en-us/business/overview/support/merchant-interchange-rates.html

Media Payments Group passes these card brand fees to its customers with no mark up.

“Per-instance” fees are not interchange fees and are assessed by the payment processing company as they happen.  These charges occur when the following conditions are met:

Address Verification Fee: ($0.01 per attempt) Verification system used to verify the address of a person claiming to own a credit card. The system will check the billing address of the credit card provided by the user with the address on file at the credit card company. The other security features for the credit card include the CVV2 number.

Chargeback Fee: ($25.00 per) A chargeback occurs when a cardholder disputes a sale with their credit card company. Visa, Mastercard, American Express, and Discover have a specific process that both parties will follow during a dispute, called the chargeback process. The processing company will work with you in resolution of the chargeback dispute.  They will communicate directly with the issuing bank and will also request supporting documentation from you to assist you in defending your sale on your behalf.

Retrieval Fee: ($10.00) A retrieval fee is charged when a customer or the customer's issuing bank requests a copy of a sales draft to substantiate a transaction. This is called a retrieval request, and most credit card processors charge a nominal retrieval fee to process a request.

Representment Fee ($2.00): You have two options whenever a cardholder files a chargeback: either accept the chargeback or fight it. Accepting is the quickest way to be done with the chargeback. However, you lose the sales revenue, any merchandise or service provided, and the wholesale cost of the goods. You are also responsible for any associated fees, such as shipping or special packaging.

Fighting the chargeback means engaging the representment process. This involves collecting specific evidence that proves the customer’s claim is invalid. If you win a reversal, the funds from the transaction are returned to your account. It is important to note that, regardless of whether you accept the dispute or choose to fight, you will still be responsible for the fees and administration costs associated with the chargeback process.

Voice Authorization Fee: ($0.65) This is a telephone dial-up service for transaction authorization. When a transaction is outside the normal range of a customer’s purchasing behavior, a voice authorization may be triggered. The customer will need to provide additional information over the phone to verify he or she is,in fact, the cardholder. Occasionally, merchants use this service as a backup if their terminal, internet connection, or software is not working to authorize transactions. Most businesses will rarely need this service, but it is typically a per-transaction, flat fee if you do.

ACH Reject Fee: ($35.00) This is assessed when the processing or ACH company attempts to debit the monthly fees from your bank account but there are not enough funds to cover the debit amount.  Processing fees are billed at the beginning of the month while software fees can be billed at the beginning or middle of the month predicated on how your account was initially set up.

Early Termination Fee: If you cancel your agreement within one calendar year from the date signed, the fee is $350.00.  If the agreement is canceled after the first year but prior to the end of the contract term, the fee is $250.00.

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