Credit cards are one of the most popular cashless transactions used the world over and it is a secure mode of payment too, which is quick and also an easy and convenient way to settle our bills wherever it may be. The Merchant who in this case is the receiver of the due payment would accept the credit card and swipe it on their internet payment connected machine and within seconds his account would be credited with the due amount.

They would hand back the credit card and the two copies of payment advice to their customer and retain one signed copy and give the other over to the customer for his records.

The transaction between the two would be completed but a Merchant Credit Card Processing Fee would be charged by the relevant credit card issuing institution from the merchant for this transaction. All rates is the best way to compare credit card processing rates.

Standard Fees

There would generally be a universal blanket arrangement in the charging of such fees by the credit card issuing entity and the merchant who is paid by the credit card user.

These Merchant Credit Card Processing Fees could vary between the issuing institutions in small percentages and certain rules regarding the use of credit cards have also changed since 2013. After 2013 users of some credit cards may have to pay a transaction fee at some merchant outlets for the use of their credit cards but this does not apply for Debit Cards, which are direct no charge credit to the merchants. The merchant would need to bear the cost of being connected to the Internet payment system and the cost of the swiping machine which could use any type of card.


Transaction fees

The quantum of this charge would depend on each individual credit issuing institution and the merchant would be liable to pay a transaction fee every time their credit cards are swiped at the outlet.

It is this fee that some merchants could charge from their customer which would also depend on what the credit card issuer would charge the merchant for that particular transaction.

There were some anomalies in this area and it left a bad taste among the credit card user and the merchant and that was settled with the issuance of certain guidelines in 2013, but still the problem lies in certain areas.

This is more so, with some merchants charging a transaction fee and some others not which would generally confuse the credit user and on the long term these merchants could lose their regular customers who would avoid visiting them.

Divided principle

Such an issue where some merchants extract a charge from credit card users and other not doing so is a problem of divided principle and does not bode well for business.

On the other hand credit card issuing institutions would generally avoid charging transaction fees from their credit card users as long as they settle their bills within the stipulated credit limit.

It is the merchant who would bear a cost and this is understandable as they are bound to gain with an increase in their business as a credit card is now a normal mode of payment unlike before.

Categories: Business

About Author

Write a Comment

Your e-mail address will not be published.
Required fields are marked*