When referring to the percentage merchants pay for accepting credit card transactions, Visa and Mastercard use the phrase “Interchange Rate”. American Express uses the phrase “Discount Rate” when referring to their processing fees, which can be misleading. Instead of giving merchants a discount for particular purchases, they are actually taking a larger percentage of the purchase than most credit card processors. As American Express works as a closed loop system (dispersing their own cards, authorizing and settling payments), they set their fees at high price rates for whatever they can get away with in our current economy.
Reducing Credit Card Processing Costs Via Chase Paymentech And Other Payment Gateways
Credit card processing costs seem minuscule when you consider one individual purchase. But as a business owner looks over their monthly statements, they will see how these small percentages really start to add up when …