Assessment Fees

Non-negotiable fees charged by card networks (Visa, Mastercard, Discover, American Express) to all merchants for the use of their payment networks, typically calculated as a percentage of transaction volume plus per-transaction charges.

Assessment fees are distinct from interchange fees, which go to card-issuing banks. Instead, assessments go directly to the card networks to fund network operations, fraud prevention programs, technology infrastructure, and brand development. These fees are published by each card network and apply uniformly to all merchants regardless of processor or pricing model.

As of 2024, typical assessment fee structures include Visa charging approximately 0.14% of transaction volume plus $0.0195 per transaction, Mastercard charging approximately 0.1375% of volume plus $0.0195 per transaction, and Discover charging approximately 0.13% of volume. American Express assessment fees vary based on the merchant's OptBlue status or direct acceptance agreement. Card networks adjust assessment fees periodically, usually announcing changes semi-annually.

Assessment fees are considered passthrough costs that processors should charge at actual network rates without markup. However, merchants should verify on their processing statements that assessments match published card network rates. Card networks also assess additional specialized fees beyond base assessments, including acquirer processing fees (APF), network authorization fees, and various program-specific charges that appear as separate line items on merchant statements.

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Related Terms

3D Secure

An authentication protocol for online card transactions that adds an additional verification layer between the cardholder and issuing bank, shifting fraud liability from merchants to card issuers when properly implemented.

ACH Payment

Automated Clearing House payment is an electronic bank-to-bank payment method that transfers funds directly between bank accounts through the ACH network, typically used for direct deposits, bill payments, and recurring transactions.

Acquirer

A financial institution that processes credit card payments on behalf of merchants, maintains merchant accounts, and facilitates the settlement of funds from card-issuing banks to merchant bank accounts.

Address Verification Service (AVS)

A fraud prevention tool that compares the numeric portions of a billing address provided during a transaction against the address registered with the card-issuing bank, returning match result codes to help merchants assess transaction risk.

Aggregator

A payment service provider that enables multiple merchants to process card transactions under a single master merchant account rather than each merchant having their own dedicated merchant account, common with services like Square, Stripe, and PayPal.