Remove Credit Risk Remove Encryption Remove Processing Costs
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How are Interchange Fees Calculated?

Stax

Apart from keeping complex payment structures running, interchange fees compensate issuing banks for taking on cardholder credit risk, and help card companies fund rewards programs. Keep card networks up and running Large, global infrastructures are required to process massive volumes of transactions safely and efficiently.

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What is a Payment Service Provider (PSP) and How Do They Work?

Stax

The best provider for you will be one that supports multiple currencies and lets you process transactions in the preferred local currency of your customers. Credit risks created by fraudulent activities are also the reason why most PSPs prohibit high-risk merchants from their platforms.

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Understanding Credit Card Processing Fees for Merchants: How Much Does Processing Credit Cards Cost?

Stax

These fees are charged whenever a credit card or debit card transaction is made, whether they checkout in-person, online or through digital payment. The basis for these fees is the credit risk that these financial institutions take on when handling credit card transactions. per transaction.

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What Is a Pass-Through Fee? Pricing Models and Why They’re Charged

EBizCharge

These fees are incurred by merchants for each transaction and are paid to the card-issuing banks as compensation for handling the credit risk and processing the payment. Pass-through fees are essential for merchants since they directly impact overall credit card processing costs.