A credit Card is a foremost need of the era. There are unlimited businesses that are rendering different kinds of services. Hence, the customer has to use a credit card to pay the money. The processing fees of credit cards are higher than expected.
Many students feel difficulty in writing. They are unable to cope with the requirements of writing. Hence, many of them use Economics Dissertation Writing Service to overcome their issues. They pay for the services online through credit cards. Hence, it becomes difficult for many students to pay the high processing fee of the credit card.
According to (bestassignmentwriter, 2020), many students use the web for learning purposes. The students are likely to encounter many issues due to high processing fees through credit card payments online. Many students get help from Dissertation Proofreading Services UK . They become unable to pay the processing fee of the credit card which it charges separately. According to research, the processing fee for each transaction ranges from 1.5 percent to 3.5 percent. The user must make sure that credit card processing fees are separate from the fees applied to carrying a credit card.
According to (Rob, 2003), the different kinds of credit card charges are as follows.
Interchange fees depend on the type of credit card and the business. Interchange fees are also called discount rates or swipe fees. The person who issues the credit card gets the interchange fee. The overall purpose of charging interchange fees is to cover the cost of accepting, processing as well as authorizing the transactions.
Apart from it, the interchange fee is the direct multiplication of the sale in dollars with the Interchange fees which the MasterCard or Visa Card sets. The interchange fee is not negotiable at all. It is fixed.
Payment Processor Fees:
There are many payment processors to accept credit card payments. People use payment processor equipment mostly to accept credit cards. According to the analysts of the industries, the payment processor fees start from 1.5 percent to 3.5 percent on every transaction. The overall percentage varies due to several factors. Hence, the processing fees of credit cards are different from the consumer fees.
Assessment fees refer to the smaller fee that the user pays directly to the card network such as Visa, American Express, MasterCard as well as Discover. The amount of fees depends on several factors such as a network. Some networks charge a higher amount for a credit card as compared to a debit card. Some networks charge higher amounts according to the volume of the transaction.
MasterCard charges 0.13% on all transactions under $1000. On the other hand, Visa charges 0.4%. Discover charges 0.13% and American Express charges 0.15%. Therefore, the assessment varies depending upon the type of cards and the volume of transactions.
Processing Fees of American Express:
American network is one of the most expensive credit card networks as compared to its competitors around. The reason behind it includes the double duty of the American card Express. It acts both as a credit card issuer and a payment network. Therefore, all these factors make its processing fees quite high than the other networks. The company is highly sensitive to its reputation as well which leads it towards taking higher charges.
The company has also introduced a service named Opt Blue for small businesses that earn revenue of less than $1 million per year. As a result, the processing fees of American Express are higher than the others.
Pricing Models for Processing Fees:
The pricing models are the following.
A flat rate refers to the interchange fee which the processor charges. The interchange fee depends on several factors. One of the major drawbacks includes its inflexibility even if the original market makes it lowers. Therefore, it increases with the increase in the overall volume. It does not decrease at all.
Tiered pricing consists of tiers. It includes lower priced tier called qualified. The higher-priced tier is known as non-qualified. The merchants are attracted to the qualified tier due to low rates. The lower tier is only applicable to certain cards or certain networks. Therefore, the users should opt for the non-qualified.
Interchange plus Pricing:
The processor uses the lower interchange fee and charges the user the fixed fee. The major advantages include that the user only pays the possible interchange fee in this regard. It varies with the factors such as volume, sector as well as several monthly transactions.
Membership or Subscription Pricing:
The subscription fee charges a fixed monthly fee for every transaction. The overall charges are lower because the processor adds the fixed percentage in the pricing model.
Therefore, the credit card processing fees vary with the change in the networks as well as the level of the overall volume.
Rob, M.A. and Opara, E.U., 2003. Online credit card processing models: Critical issues to consider by small merchants. Human systems management, 22(3), pp.133-142.
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