Answer: Normally, you do get charged a slightly higher fee due to the additional risk involved with merchants accepting these types of credit card payments because the merchant isn’t physically able to view the credit card being used to make the purchase.
Other helpful questions include:
Question: What are Non- Sufficient Funds (NSF) fees?
Answer: These fees occur when a current demand for a payment is not honored and cannot be honored due to insufficient amounts of funds in the account from which the payment was originally drawn from.
Question: What is a chargeback?
Answer: Initiated by the issuer, this is a credit card transaction that is billed back to the merchant after the sale of a product or service has been settled.
Question: What is a retrieval request?
Answer: The card issuer has the ability to request a copy of the sales draft, terminal receipt of the payment transaction or the transaction information document (TID).
Question: What is a transaction fee?
Answer: It is a fee that is charged for each occurrence that happens through the POS system.
Question: What are interchange fees?
Answer: Interchange fees represent a small percentage of the dollar value; reimburse the issuer for the risk of loss (fraud and credit losses) and the cost of processing the transaction. This fee makes it possible for issuing banks and acquiring banks around the world to exchange transactions and settle financially on a standardized and consistent basis.
Question: What is the discount rate?
Answer: This rate is a fixed rate this is deducted from a purchase when an order is made.
Question: What are the different types of discount rates?
Answer: There are many different types, but the main three types are Qualified, Mid-Qualified and Non-Qualified.
Question: Why do I pay more for Rewards cards, I don’t get a reward?
Answer: These cards offer a “reward” to the cardholder, so there is a slightly increased cost to processing these types of cards.