Dues & Assessments

Dues & Assessments refer to the processing fees that merchants are required to pay to Card Associations, such as Visa, MasterCard, and others. These fees are crucial for supporting the operational activities of the card networks. The revenue generated from these fees is allocated towards various essential functions including the operation and maintenance of the payment network, the establishment and enforcement of transaction rules, pricing structures, as well as ongoing research and development. Additionally, a portion of these funds is used for marketing and branding efforts that promote the use of the card networks.

These fees are typically calculated as a fixed percentage of each sales transaction processed through the card network. The exact percentage can vary based on the agreement between the merchant and the card association. Collection of these dues and assessments can be scheduled on a daily or monthly basis, depending on the terms set by the card network. This system ensures that card networks can continue to offer secure, efficient, and innovative payment solutions to merchants and cardholders alike.