Per Location Fee

What is The MasterCard Per Location Fee?

A Merchant Location Fee is an assessment fee imposed by MasterCard for each business location accepting MasterCard. The fee is charged to credit card processors, who in turn charge your business. Early information about the location fee indicated that it will be assessed based on the number of locations a business has at the end of the fourth quarter in 2016. Unlike interchange charges, the card brands post little information about the assessments they charge. How is the location fee assessed? This new fee is assessed directly by MasterCard and is not being assessed by payment processors. It’s likely that most payment providers will pass along the fee. Many actually charge more for the fee itself. There are some exclusions to the fee: If you process less than $200 USD per month in MasterCard volume If your MCC code is 8398 or 8661** Any location that accepts MasterCard, online or in-store…

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Overpaying for Payment Processing

Three Ways to Tell if You’re Paying Too Much For Credit Card Processing

Many businesses overpay for their credit card processing, possibly without even realizing it. So how do you know if you are paying too much? There are three major ways to tell if you’re overpaying. The first one is to look for the word “non-qualified” on your monthly billing statement. If you see that word, there’s a good chance you’ve been paying too much. “Non-qualified” is associated with the tiered pricing model, in which case processors can randomly choose which transactions they want to charge you more for, not based on any legitimate reasoning. If you want to lower your costs, you should switch to a processing company that uses interchange plus pricing instead. This kind of pricing structure distinguishes between different components and allows for more transparency in the reporting. Compared with tiered pricing, it usually leads to lower costs for merchants. If you are using a flat rate processor,…

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