Charges for online merchant processing

To process online credit and debit card payment transactions, it is imperative to obtain a merchant account with an acquiring bank to process and accept these payments. There are certain fees that retailers are required to pay for merchant processing purposes, these fees are largely dependent upon the type of merchant account, size of the business entity, volume of payments and the jurisdiction in which the merchant is located.

For more information on obligations and relevant charges for using an online merchant processing account, please click on the following link to view our Merchant Account Services page.

Online merchant processing charges

The charges for online merchant processing differ as they are dependent on the acquiring bank or processor that provides the retailer with the merchant account. There are four basic fees that must be complied with in order to successfully transact payments online. These are outlined below:

  1. Discount rate: this is the fee charged as a percentage of the total transaction value.
  2. Transaction fee: this is a small fee paid for each transaction that is being processed, also known as the gateway transaction fee.
  3. Refund fee: this is the fee that will be charged for every refund that the merchant issues through their merchant processing account.
  4. Chargeback fee: this is the fee that is charged for every chargeback that the client issues. This fees is usually high, however it is dependent on the type of account and location of your company.

In some cases, the owner of an online merchant processing account will be expected to pay further fees such as anti fraud fees and address verification (AVS) fees. It is highly advised to enlist the services of a professional consultancy firm when obtaining an online merchant account as the procedure is often complex and follows rigorous relations as outlined by the jurisdiction.