What institutions are charging for the procedures of POS card swipe?

I. Service fee of card issuer

Credit card users can be called the issuing bank of their own credit card, global payments card processing fees the issuing management organization to the acquirer by charging, debit card: no higher than 0.35%, credit card: no higher than 0.45%.

Card issuers may not charge a single business service product rate significantly higher than 0.45%, for example: using a POS machine to swipe the bank's credit card, traditional banks as the issuer can only charge a maximum of 0.45% of the cost of POS transactions, then swipe 10,000 yuan, commercial banks will be charged a fee of 0.45% of the amount of the transaction.

Then swipe 10,000 yuan, commercial banks will charge 45 yuan handling fee, currently all card issuers in China are charged a certain fee according to the highest quality standard (0.45%).

B. Clearing Agency Service Fee

The clearing institution refers to UnionPay (the operating institution of the online payment and settlement platform of non-bank payment institutions). The total percentage of credit card fees charged by the clearing institution shall not exceed 0.065% of the amount of a single credit card transaction.

Among them, the issuing institution and the receiving institution shall each bear 50%, i.e. 0.0325% of the amount of a single credit card transaction, the sum of which shall not be higher than 0.065%.

C. Acquirer service fee (third party payment)

The acquirer generally refers to the third-party payment companies, such as UBS, Lakala, Yinshengtong, Alipay, Wealthpass, Jingdong Netpay, etc., which are all acquirers.

They are managed by banks. The billing institution will adjust the fees to the merchant by adjusting the pos card handling fee according to the market price adjustment implemented by the card issuing bank and clearing institution.

Do merchants have the right to charge for card payments?

Except in states where they are prohibited, credit card fees are permitted in the United States (more on that below). If a company decides to charge a surcharge for credit card payments, it must make the price known to you up front and separately itemize it on the receipt.

Is there a charge for processing debit cards?

Processing costs are charged for using debit cards in the same way as credit cards. The business must pay a fee to the bank that issued the debit card whenever a consumer uses it to make a purchase (known as the interchange fee).

What is the typical processing cost for credit cards?

The typical processing cost for credit cards ranges from 1.5 to 3.5%. What can a merchant do to reduce these costs and where do all these fees come from?

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