If your business accepts card payments, you’ve likely come across a confusing mix of fees. But what are they really for? And are they the same for everyone?
We at CardCorp are aware that merchant fees can be confusing. We’ve put together this simple guide to help you understand what to expect and how to lower card payment fees.
Let’s take a closer look at the fees you might face and how to handle them.
Merchant Account Fees: What Are They?
Merchant account fees are what your business pays to accept credit or debit card payments, covering systems like secure technology, transaction processing, and connections to banks and card companies.
To put it another way, it’s like paying a service fee for the infrastructure that enables you to accept online or remote payments. Without this setup – including secure payment gateways, fraud prevention tools, and processing networks – you wouldn’t be able to accept card payments efficiently or reliably.
Your business type, sales volume, and the perceived level of risk in your industry all affect how much you pay. For example:
- A small neighbourhood café that primarily accepts cash typically pays less.
- Online betting sites, crypto exchanges, and adult services usually pay higher fees because they’re seen as risky. There’s a greater chance of chargebacks, fraud, or other problems. To protect themselves, acquirers charge more in case they end up covering the merchant’s losses.
Therefore, knowing which category your business falls into helps you understand your merchant account fees – and what you can do to manage them.
Learn more in our guide to merchant accounts.
How Payment Fees Are Structured
Most card payment fees fall into three categories: interchange, assessment, and processor markup. These are the building blocks of what you pay – but how they’re presented to you depends on the pricing model your provider uses.
At CardCorp, we offer two options:
- Interchange++ Pricing – Transparent and itemised. Each fee type is listed separately, helping you see exactly where your money goes.
- Blended Pricing – Simpler and more predictable. All fees are bundled into one fixed rate – though this can cost more if your transactions are diverse or high volume.
In short, one model offers full visibility, the other offers simplicity. Now, let’s explore each in more detail.
Interchange++ vs. Blended Pricing
When setting up a merchant account with CardCorp, you have the option to choose between Interchange++ and Blended pricing models. Each has its own advantages and considerations, depending on your business needs.
Interchange++ Pricing
In the Interchange++ model, fees are broken down into three parts:
1. Interchange Fees
These are charged by the cardholder’s issuing bank. Interchange fees are typically a percentage of the transaction value, and they vary based on factors such as:
- Card type (debit, credit, corporate, premium, etc.)
- Transaction type (in-store, online)
- Risk level (e.g. secure authentication used or not)
- Geography (domestic vs. cross-border)
2. Assessment Fees
These are paid to the card networks (like Visa or Mastercard) to cover the cost of authorising, clearing, and settling the transaction. They are usually small, fixed percentages or per-transaction fees and can vary by:
- Card brand
- Region (domestic vs. international)
- Transaction currency
3. Acquirer Markup (also known as Processor Fee)
This is the fee charged by your acquirer or payment processor. It covers the cost of providing payment services, including customer support, fraud prevention tools, and system maintenance. It can include:
- A fixed fee per transaction
- A percentage markup on top of interchange and scheme fees
This transparent model lets you see exactly what you’re paying for, making it ideal for high-volume or diverse businesses.
Blended Pricing
With Blended pricing, all the underlying fees – interchange, assessment, and processor markup – are combined into a single fixed rate. This model is designed for simplicity: you always know what percentage you’re paying, regardless of the card type or transaction specifics.
While this predictability can be useful for budgeting, it comes at a cost. Because the rate is averaged to cover a wide range of scenarios – including higher-cost cards and international transactions – you might end up paying more than necessary, especially if most of your transactions are low-risk or domestic.
Blended pricing works best for businesses that:
- Prefer straightforward billing with no line-by-line breakdowns
- Handle a smaller volume of card transactions
- Are looking for ease of reconciliation over granular cost control
However, for businesses with a large or diverse transaction mix, Interchange++ is typically more cost-effective and transparent.
What’s a Rolling Reserve?
A rolling reserve is a type of security deposit that protects against future risks. For a predetermined amount of time, your provider withholds a portion of your sales, which is typical in high-risk industries.
Here’s how it works: Let’s say you process €10,000 in sales this month. If your rolling reserve is 5%, the acquirer will hold €500. This money isn’t lost – it’s just delayed. After 90 to 180 days, that reserve is released back to you if there haven’t been any problems.
Why do this? Because chargebacks and refunds are more common in some industries than others. A rolling reserve gives your provider a cushion to deal with unexpected issues. It also helps ensure your business can keep running smoothly even if problems pop up.
At CardCorp, we’re upfront about rolling reserves. These are set by the acquirer to reduce risk and are only applied when necessary. We always work with you to keep them fair and proportionate to your processing volume.
Our comprehensive guide to high-risk merchant accounts has more information.
What Are Chargeback Fees?
When a cardholder contacts their bank to dispute and reverse a credit card payment, this process is known as a chargeback. Unlike a standard refund initiated by the merchant, a chargeback is a forced refund, and it almost always comes with additional costs. These can include:
- Chargeback fees from your acquirer or processor
- The loss of the original transaction amount (if the dispute is upheld)
- Operational time spent investigating and responding to the claim
Even if the merchant wins the dispute, the chargeback fee is often non-refundable.
Why Chargebacks Matter – And How to Keep Them Under Control
Chargebacks can occur for several reasons, including:
- The customer didn’t receive the product or service
- The item didn’t match the description
- The customer didn’t recognise the charge
- The card was used fraudulently without their consent
Each chargeback typically comes with a fee of €15 to €30, and if your business receives too many, the consequences can be serious.
Your company could be:
- Flagged by card schemes (like Visa or Mastercard)
- Charged higher processing fees by your acquirer
- Classified as high risk, making it harder and more expensive to process payments
- In extreme cases, lose the ability to accept card payments altogether
That’s why keeping your chargeback rate low is so important. CardCorp helps you stay ahead with:
- Real-time transaction tracking
- Intelligent chargeback alerts
- Expert support to reduce disputes and protect your revenue
The fewer chargebacks you receive, the more stable and cost-effective your payment setup becomes.
For more tips, read our full guide on preventing fraud and chargebacks.
How to Prevent PCI Compliance Fees
If you don’t handle cardholder data securely, you may be charged PCI compliance fees. These requirements come from the Payment Card Industry Data Security Standard (PCI DSS) and apply to any business that handles, transmits, or stores cardholder information.
If you violate these regulations, you may be subject to PCI compliance fees, which typically range from €10 to €30 per month, or even more severe penalties in the event of a data breach.
Some payment providers charge PCI compliance fees – even if you’re fully compliant. At CardCorp, we do things differently. We support you through the compliance process and provide the tools you need to stay on track.
Most importantly, as long as you follow the required steps and remain compliant, we don’t charge any PCI compliance fees.
Need help? Check out our PCI compliance guide for simple steps to stay secure.
Additional Fees for Card Payments You Should Be Aware of
Some providers charge additional fees in addition to the core fees. These may consist of:
- Monthly merchant account fees – A basic cost just to keep your account active. Usually €10 to €30.
- Gateway fees – These apply if you take payments online. You pay for access to the system that connects your website to the payment networks. Learn more in our payment orchestration guide.
- Early termination fees – Some providers charge a fee if you close your account before the end of your contract.
CardCorp supports transparent pricing. We disclose all of our merchant fees up front to avoid any unpleasant surprises.
Not sure if your provider is doing enough? Read our article on payment processor red flags.
Simple Strategies to Reduce Your Merchant Fees
It doesn’t have to be hard to reduce your merchant fees. Here are a few easy pointers:
- Cut down chargebacks – Be clear about what you sell. Provide great customer service. Make sure customers know how charges will appear on their statement.
- Stay PCI compliant – Keep your payment systems secure. Use trusted providers and follow best practices.
- Check your statements – Review your monthly payment processing fees as part of your reconciliation process. CardCorp Hub makes this easy with funding reports from integrated acquirers.
- Pick the right provider – A good provider can help you avoid unnecessary costs. CardCorp is experienced with both regular and high-risk businesses. We help you manage your risk and reduce your total merchant account fees.
Small adjustments can result in big savings – and the more you understand your credit card processing fees, the more control you’ll have.
See our merchant account approval guide for high-risk businesses to learn how to get approved.
CardCorp is an independent sales organisation (ISO) – but what does that actually mean for your business? Here’s how partnering with an ISO like CardCorp benefits you, and what to expect from the process.
Final Thoughts
Card payments help your business grow – but they also come with costs. When you understand these costs, you can make smarter choices and keep more of your revenue.
From merchant account fees and interchange fees to chargeback fees and PCI compliance fees, it all adds up. But when you know what to expect, it’s easier to stay on top of it.
Our goal at CardCorp is to offer straightforward, fair pricing and all the support you need. Whether you’re just starting out or running a large, established business – we’re here to help. And if you’re in a high-risk sector, we’ll work with you to find a solution that fits your needs.