Pricing
Transaction Fee
Definition
Transaction Fee a fixed fee charged per transaction, regardless of transaction amount. Common examples: $0.30 per transaction with Stripe, or $0.10-0.20 per authorization in IC++ pricing. Transaction fees have greater impact on low-value transactions - a $0.30 fee on a $10 transaction adds 3% to cost. Merchants with low average ticket values should negotiate lower per-transaction fees.
Related Terms
Processing Fee
A general term for fees charged to process payment transactions. Can refer to the total cost (MDR) or specifically to the acquirer's fees separate from interchange. Processing fees may include per-transaction fees, percentage fees, monthly fees, and various incidental charges. Understanding all components is essential for comparing processor costs accurately.
Authorization
The process of requesting approval for a card transaction from the issuing bank. The authorization request includes card details, amount, and merchant information. The issuer checks available credit/funds, fraud rules, and account status before responding with an approval or decline. Authorization is the first step - funds are reserved but not transferred until capture.
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