What is important to remember when taking a credit card as a type of payment in a restaurant?

Interchange fees – These are fees that are charged by banks to process credit cards. The merchant’s bank (aka acquiring bank) deducts interchange fees from the total amount processed which is then paid to the issuing bank.

Assessments – Assessment fees are paid to credit card networks — i.e., Visa, MasterCard, Discover, American Express, etc. This is how these brands make money from every transaction.

Markups – These are the fees of your credit card processor. Merchant service providers typically make their money by marking up the interchange and assessment fees mentioned above.

IMPORTANT: Payment processors do not have control over interchange and assessment fees. These are set by banks and credit card networks, and every merchant has to pay them. In short: these costs are non-negotiable.

Explanation:

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