What is a card association fee?
A card association fee, also known as an assessment fee, refers to a fee charged by card networks such as Visa and Mastercard. These fees help fund the operation and maintenance of the global card payment network.
Who pays card association fees?
Acquiring banks or payment processors usually pay the fees to the card networks. The cost then passes to merchants as part of overall payment processing fees.
How are card association fees calculated?
These fees normally represent a small percentage of the transaction value processed through the card network. The exact rate depends on the card scheme and region.
Why do card networks charge assessment fees?
Card networks maintain payment infrastructure, security standards, and global transaction routing systems. Assessment fees support these services and network operations.
Are assessment fees the same as interchange fees?
No. Interchange fees go to the card issuing bank. Assessment fees go to the card network which operates the payment system.