What Are the Credit Card Processing Fees and Rates in Vagaro?

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    Aidah Sama

    What exactly are card association fees? I don't remember seeing that before when I signed up and why does it seem your fees penalize the bigger merchant?

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    Dan C

    Hello Aidah,

    The information you have requested is below. For further help regarding merchant processing information, please call 800-919-0157 opt. 2 for support.

     

    • Fees for Access to Card Brand Services
    • Fixed Acquirer Network Fee or FANF
    • Annual Location Fee for MC

     

    Card Brand Fees (also known as Card Association Fees) are the fees that are actually paid back to Visa/MasterCard/Discover. These are also commonly referred to as NABU fees (Network Access and Brand Usage fees). Most merchants don’t realize that the vast majority of the fees paid aren’t actually paid to the Card Associations, but instead to the banks that physically issue the cards (for example a Chase Slate card charges a fee which Chase receives). There are literally dozens of different small circumstantial fees charged by the associations that apply in all different circumstances. Keep in mind that these are not charged by Vagaro Merchant Services (VMS). These are fees collected by VMS and immediately passed through to the Corporate brand of card your customer used. Here are all of the potential assessment fees (as of March 2017), although many merchants may never be subject to many of these specific fees.

     

    Visa Assessments

    Visa Fee Pass-Through cost
    Credit Assessments 0.13% of credit card volume and $0.0195/transaction. For a $100 credit sale, Visa takes about 15 cents.
    Debit Assessments 0.13% of debit card volume and $0.0155/transaction. For a $20 debit sale, Visa takes about 4.2 cents.
    FANF Fixed Acquirer Network Fee – Visa charges this flat fee based on how much volume you process per month.
    International Service Assessment Fee Any card you accept from outside the US will be subject to a 0.80% international surcharge from Visa.
    International Acquirer Fee This fee applies under identical circumstances as above – there is an additional 0.45% surcharge from Visa.
    Transaction Integrity Fee (TIF) This $0.20/transaction fee is assessed when a settled debit/prepaid card doesn’t meet CPS requirements – such as submitting AVS info on keyed sales and settling every 24 hours.
    Zero Floor Limit Fee This $0.20/transaction fee is assessed when a settled transaction can’t be linked to a proper authorization.
    Zero Dollar Verification Fee This rarely applied fee of $0.025/transaction applies when cardholder information (AVS, CCV) is verified without authorizing the sale.
    Misuse of Authorization Fee This $0.09/transaction fee applies to all authorized transactions that do not have a matching settled sale.
    Kilobyte Access Fee This $0.0047/transaction fee is charged for each authorized transaction submitted for settlement.
    Settlement Network Access Fee This $0.0025/transaction fee is charged for all US-based settled transactions.

     

    MasterCard Assessments

    MasterCard Fee Pass-Through cost
    Credit/Debit Assessments 0.12% of card volume and $0.0195/transaction for sales under $1,000. For a $100 sale, MasterCard takes about 14 cents.
    Credit/Debit Assessments 0.13% of card volume and $0.0195/transaction for sales over $1,000. For a $2,000 sale, MasterCard takes about $2.62.
    Digital Enablement Fee This fee is 0.01% of volume, and applies on Card-Not-Present sales for commercial cards, consumer credit cards, and signature debit cards.
    Cross Border Assessment Fee (Domestic) Any card you accept from outside the US will be subject to a 0.60% international surcharge from MasterCard.
    Cross Border Assessment Fee (Foreign) Any card you accept from outside the US that is settled in non-US dollars will be subject to a 1.00% international surcharge from MasterCard.
    Acquirer Program Support Fee This 0.85% fee applies to any cards you accept from outside the US, just like the Cross Border Assessment Fee (domestic).
    AVS Fee (Card-Present) MasterCard assesses a $0.005/transaction fee for using Address Verification Services in a Card-Present environment.
    AVS Fee (Card-Not-Present) MasterCard assesses a $0.0075/transaction fee for using Address Verification Services in a Card-Not-Present environment.
    Card Validation Code Fee There is a $0.0025/transaction fee for all transactions that are submitted with the Card Validation Code (also known as Card Code Verification or CCV).
    Kilobyte Access Fee This $0.00444/transaction fee is charged for each authorized transaction submitted for settlement.
    Acquirer License Fee This 0.0045% fee is assessed on all processing volume.
    Processing Integrity Fee This $0.055/transaction fee is charged when transactions are not settled within 24 hours for Card-Present sales, or 72 hours for Card-Not-Present sales.
    Account Status Inquiry Fee This rarely applied fee of $0.025/transaction applies when cardholder information (AVS, CCV) is verified without authorizing the sale.
    Annual Location Fee This $15 fee is assessed to all merchants on a per-location basis. For each location you have, MasterCard will assess $15. This fee is billed in February.

     

    Discover Assessments

    Discover Fee Pass-Through cost
    Credit/Debit Assessments 0.13% of card volume and $0.0185/transaction for all sales. For a $100 sale, Discover takes about 15 cents.
    International Processing Fee Any card you accept from outside the US will be subject to a 0.40% international surcharge from Discover.
    International Service Fee This 0.55% fee applies to any cards you accept from outside the US, just like the International Processing Fee.
    Network Authorization Fee This $0.025/transaction fee is charged for each authorized transaction submitted for settlement.

     

    American Express Assessments

    AMEX Fee Pass-Through cost
    Credit/Debit Assessments 0.15% of card volume is paid directly to American Express. On a $100 sale, this works out to 15 cents.
    Card-Not-Present Surcharge American Express will charge 0.30% of all Card-Not-Present volume
    International Assessement This 0.40% fee applies to any cards you accept from outside the US

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