Where Do Your Merchant Account Fees Go?

Merchants pay a variety of fees for the ability to accept credit, debit and gift cards as payment from customers. The overall cost is typically between two percent and four percent of charged transactions. Here is who actually receives the fees paid by you, the merchant:

The card issuer (issuing bank, Amex, Discover or Diners Club): approximately 85%
Credit card association or company (Visa, MasterCard, Amex, Discover or Diners Club): under 10%
Processor: under 5%

• Merchant Sales Organization: under 5%

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This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2010.

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