Network Fees

Network fees refer to the charges that card networks, such as Visa, MasterCard, American Express, and Discover, impose on transactions processed through their networks. These fees are part of the overall costs that merchants incur when accepting card payments and are included in the interchange fees paid by the merchant's bank (acquiring bank) to the cardholder's bank (issuing bank).

Key aspects of network fees include:

Understanding network fees is crucial for merchants as it enables them to better negotiate with payment processors and select the most cost-effective solutions for their payment processing needs. Additionally, by understanding these fees, merchants can more accurately forecast their operating expenses related to card payments.