Credit Card Convenience Fees

You will agree that today there is hardly a business that does not accept credit card payments while it is a preferred payment method for a great amount of customers. And it is not a secret that every time when a transaction is processed a certain processing cost is associated with it. Traditionally processing expenses are covered by merchants but sometimes they can be passed to a cardholder. It can happen, for instance, when a merchant needs to process micro-transactions and processing costs are too high or when a merchant just plays a role of a mediator between a provider of goods or services and a customer, etc. In such a case convenience fees can be applied.

When convenience fees are used the processing costs are paid by a cardholder. Let’s have a look how it works. Credit card convenience fees can be charged either as a part of the processed transaction or as a separate one. The first option is considered to be more popular among customers because it requires only one transaction and what is more it is also preferred by credit card association, especially Visa.

This is a very brief explanation of the concept of credit card convenience fees and in some situation, this solution might be used by your business so if you want to learn more about it you can read the full article at #Paylosophy.