Everything You Need to Know About Credit Card Processing Fees

One thing for sure is that credit card services can be overwhelming, expensive and confusing.

At one point it seems like a credit card machine is the answer to many problems. That is until you receive your monthly statement and realize how much money you are losing in fees.  That’s why many people think of credit card readers as a “necessary evil.”  To overcome this perspective, you need to know more about the credit card industry.  Here is a rundown.

The following is the list of parties involved in a credit card business. 

• Merchant: This is the business owner who is accepting your payment. 
• Cardholder: This is the customer who owns the credit card and is going to use it for various purchases. 
• Card Association: These are not the banks but the governing bodies who are in charge of setting the exchange rates.  They also are responsible for the maintenance and improvement of networks. The credit card processing fee is highly dependent on the card association and the acquiring bank.
• Issuing bank: This is the cardholder’s bank, the one who issues cards to consumers (they are a part of the card associations).