.png?width=300&height=300&name=Untitled%20design%20(6).png)
Guide to Interchange, Association & Processor Fees
| Category | Brand / Scope | Name | Meaning |
|---|---|---|---|
| Interchange | Visa | CPS Retail / CPS Qualified | Discounted rate for properly formatted, low-risk card-present transactions where all data requirements are met. |
| Interchange | Visa | CPS Rewards / Rewards 2 / Rewards 3 | Interchange for consumer rewards cards; levels increase with card benefits. |
| Interchange | Visa | CPS Card-Not-Present | Category for online or keyed transactions; slightly higher due to increased fraud risk. |
| Interchange | Visa | EIRF (Electronic Interchange Reimbursement Fee) | Fallback category applied when a transaction fails CPS requirements. |
| Interchange | Visa | Standard / Non-Qualified | Highest-cost category when key data is missing or risk factors are higher. |
| Interchange | Visa | Business Level 1, 2, 3 | Interchange tiers for business/commercial cards; Level 2/3 require extra invoice/tax data and offer lower rates. |
| Interchange | Visa | Debit Regulated / Debit Unregulated | Regulated debit from large banks is capped by law at a lower fee; unregulated small-bank debit carries higher interchange. |
| Interchange | Mastercard | Merit I / Merit III | Standard interchange for card-present transactions that meet Mastercard's data and formatting requirements. |
| Interchange | Mastercard | World / World Elite | Interchange categories for premium consumer rewards cards. |
| Interchange | Mastercard | Consumer eCommerce Basic / Enhanced | Interchange for online Mastercard transactions; enhanced categories may apply when additional security/authentication steps are performed. |
| Interchange | Mastercard | Business Level 1, 2, 3 | Similar to Visa's commercial structure; Level 2/3 require extra invoice and tax data to qualify for lower rates. |
| Interchange | Mastercard | Data Rate I, II, III | Interchange categories based on the amount of POS data transmitted; more data can lower the rate. |
| Interchange | Mastercard | Standard | Highest-cost fallback category when transactions fail to meet rules for better programs or data requirements. |
| Interchange | Discover | Discover Commercial | Interchange applied to Discover commercial and business card products. |
| Interchange | Discover | Card-Present / Card-Not-Present | Standard Discover interchange categories divided by transaction method. |
| Interchange | Discover | Recurring Payments | Lower interchange applied for subscription or recurring billing transactions. |
| Interchange | Discover | Reduced Qualification | Category used when transactions fail to meet Discover's criteria for best rates. |
| Interchange (OptBlue) | American Express | OptBlue Industry Rates | Wholesale rates set by Amex based on MCC; acquirers then set merchant pricing. |
| Interchange (OptBlue) | American Express | Premium / Rewards Tiers | Higher-cost tiers for premium and rewards Amex cards. |
| Interchange (OptBlue) | American Express | CNP Rates | Higher Amex rates for card-not-present (online or keyed) transactions. |
| Association (Network) | Visa | APF (Acquirer Processing Fee) | Per-transaction fee for processing through the VisaNet network. |
| Association (Network) | Visa | NABU (Network Acquirer Brand Usage Fee) | Fee for using the Visa network for each authorized transaction. |
| Association (Network) | Visa | Misuse of Authorization Fee | Charged when an authorization is not settled or reversed within the required timeframe. |
| Association (Network) | Visa | Zero Floor Limit Fee | Applied when a settlement occurs without a corresponding authorization on file. |
| Association (Network) | Visa | FANF (Fixed Acquirer Network Fee) | Monthly network fee based on merchant category and processing volume. |
| Association (Network) | Visa | International Service Assessment (ISA) | Fee applied to transactions involving a non-U.S. issuing bank. |
| Association (Network) | Visa | International Acquirer Fee (IAF) | Additional fee for cross-border Visa transactions. |
| Association (Network) | Mastercard | NABU Fee | Mastercard's per-transaction network usage fee. |
| Association (Network) | Mastercard | Cross-Border Assessment | Applied when the card is issued outside the merchant's region. |
| Association (Network) | Mastercard | AVS Fee | Fee for using Address Verification Service on transactions. |
| Association (Network) | Mastercard | Acquirer License Fee | Periodic license fee charged to acquirers for use of the Mastercard network. |
| Association (Network) | Mastercard | Digital Enablement Fee (DEF) | Fee that supports tokenization and Mastercard digital wallet services. |
| Association (Network) | Discover | Assessment Fee | Standard per-transaction network usage fee for Discover. |
| Association (Network) | Discover | International Service Fee | Fee for transactions using non-U.S. issued Discover cards. |
| Association (Network) | Discover | Data Usage Fees | Fees related to Discover's enhanced data and reporting services. |
| Association (Network) | American Express | Network Assessment Fee | Per-transaction fee that supports Amex network operations under OptBlue. |
| Association (Network) | American Express | Cross-Border Fee | Fee for international or non-U.S. Amex card usage. |
| Association (Network) | American Express | Gateway / Tokenization Fees | Fees related to digital wallet support and tokenization/security services. |
| Processor Fees | All / General | Monthly Fee / Statement Fee | Fee for account maintenance, reporting, or monthly statements. |
| Processor Fees | All / General | Payment Gateway Fee | Fee for secure online payment routing through a gateway (often for e-commerce). |
| Processor Fees | All / General | Batch Fee / Daily Close Fee | Applied each time the merchant batches out (settles) their transactions. |
| Processor Fees | All / General | PCI Compliance Fee | Fee associated with supporting PCI security programs and tools. |
| Processor Fees | All / General | PCI Non-Compliance Fee | Penalty charged when merchants fail to complete required PCI steps. |
| Processor Fees | All / General | Chargeback Fee | Fee assessed when a customer disputes a transaction and a chargeback is processed. |
| Processor Fees | All / General | Retrieval Fee | Fee for providing transaction documentation when requested by the issuer or network. |
| Processor Fees | All / General | AVS Fee | Fee charged for using Address Verification Service on keyed or card-not-present transactions. |
| Processor Fees | All / General | Voice Authorization Fee | Fee for manual phone-based transaction authorizations. |
| Processor Fees | All / General | Early Termination Fee (ETF) | Charged when a merchant exits their processing contract before the agreed term. |
| Processor Fees | All / General | Monthly Minimum Fee | Ensures the processor reaches a minimum revenue threshold if the merchant processes very little volume. |
| Processor Fees | All / General | Gateway Tokenization / Vaulting Fees | Fees to securely store card-on-file credentials and support tokenization. |
| Processor Fees | All / General | Equipment Rental / Purchase Fees | Cost of terminals, PIN pads, or POS systems used to accept payments. |
| Summary | All / General | Interchange Fees | Set by issuing banks and card networks; vary by card type, risk, and transaction method; typically the largest component of total processing cost. |
| Summary | All / General | Association (Network) Fees | Charged by Visa, Mastercard, Discover, and Amex to support network operations, risk tools, and infrastructure. |
| Summary | All / General | Processor Fees | Charged by the merchant service provider to cover support, technology, risk management, and operational services. |