Merchant services fees consist of several groups of components. Interchange fees represent the basis of the processor’s revenue. Flat fees are intended to compensate additional efforts, required from the processor during processing of certain types of transactions (such as chargebacks). Finally, subscription fees are charged on a regular basis, independently of current processing volumes of a given merchant. Even if a merchant processes low transaction volumes, the merchant account still needs to be serviced, and subscription fees are what the processor gets for supporting the merchant’s account.
Depending on a given merchant’s processing volumes and the types of transactions this merchant needs to process, the merchant can determine, which groups of fees represent the major part in his case, when he has to select the most suitable processing offering.
More detailed information on merchant services fees is available on #Paylosophy.