Merchant, Interchange (IC), Scheme, and storage fees are charged with every transaction.
Merchant fees refer to the commission paid to Mews for using Mews Payments. The rate for this fee can be found in your contract.
Interchange and Scheme fees (collectively called Interchange ++) are fees paid by the merchant’s bank to the customer’s bank for payment processing. These fees vary based on the type of card and countries involved in the transaction. The rates for these fees are set by payment networks, such as Visa and Mastercard. Learn more about fee rates in the EEA (European Economic Area) for Visa and Mastercard.
This is a % fee paid by the Acquirer to the Issuing Bank and is always defined by the Card Schemes. Interchange Fees are variable and are directly affected by certain factors.
The factors that can influence the IC fee are:
• Where the merchant is located (where the hotel is located in our case).
• Where the cardholder bank is located.
The card type that is used (personal card vs corporate card).
This is a % fee paid by Acquirer to Card Scheme and is defined by the Card Scheme. This is the method that the likes of Visa and Mastercard make money from as they do not make any money from Interchange Fees.
Even if the payment is declined by the Issuing Bank, the acquirer still needs to pay the Scheme Fee. Interchange fee rates are publicly published and in Europe are highly regulated by the EU. Card scheme fees, however, are not publicly disclosed and are unregulated.
Card scheme fees are made up of a myriad of different charges, including:
• variable fees per transaction
• dependent on card type
• acceptance method
• fixed fees, unrelated to any transaction. Some are dependent on the acquirer volume processed and the card scheme services used by the acquirer