What are “Daily batch fees”

Question

I see this a lot since I am currently looking for a payment gateway for my website and am looking into merchant accounts and don’t fully understand what it is or how it works.

Something along the lines of :

* Per transaction 10¢, daily batch fee 10¢ 

In: Economics

Answer 1

This is why some companies don’t take certain credit cards.

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Credit cards are only “free” to the consumer. The merchant actually has to pay a fee, usually around 3% of transactions. You can pay this per transaction, or you can pay by batch. (a list of transactions, all done at once every day.)

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So if you take say $10,000 in sales, the credit card companies are going to charge you roughly ~$300 in fees.