At Franpos, we believe in being upfront about costs to help you understand the fees associated with processing credit card transactions. By demystifying these charges, we aim to empower your business to make informed decisions while maintaining transparency about how fees are calculated.

Why Do Processing Fees Vary?

Processing fees aren’t arbitrary; they depend on factors like the type of card and the transaction method.

1. Card Type Matters:

• High-Reward Cards: Cards offering travel points, cashback, or other perks come with higher fees. These costs are set by card networks to fund the rewards programs.
• Debit Cards: These are the most affordable to process, with lower rates and minimal risk.
• Standard Credit Cards: These fall between debit and high-reward cards in cost.

2. Transaction Method:

• Card-Present Transactions: Physically swiped or tapped transactions have lower fees due to reduced fraud risk.
• Card-Not-Present (CNP) Transactions: Online or phone payments are more expensive because of higher fraud risks.

Breaking Down a Real Merchant Statement

Using a typical merchant statement as an example, let’s look at the charges you may encounter:

1. Base Processing Fees:

   • For July, a merchant processed:
     • Visa (65%): $40,716.82 in sales with fees of $158.80.
     • Mastercard (19%): $11,779.50 in sales with fees of $45.94.
     • American Express (13%): $8,793.01 in sales with fees of $34.63.
     • Discover (3%): $1,692.05 in sales with fees of $6.59.
   • Total base fees: $245.96.

2. Assessment and Network Fees: These are set by card networks to maintain infrastructure and cover transaction processing costs:

   • Visa APF Fees: $12.15
   • Mastercard NABU/License Fees: $8.69
   • Total assessment fees: $91.83.

3. Additional Monthly Fees:

   • PCI Compliance Support: $18.80
   • Fixed Acquirer Network Fee (FANF): $7.00
   • Breach Coverage Fee: $6.95

4. Total Monthly Fees: The total amount deducted for processing was $1,355.94.

Franpos’s Transparent Pricing Model

Our pricing is straightforward: Interchange + 0.xx% + $0.0x per transaction. Here’s what that means:

• Interchange Fees: These are the costs set by card networks, depending on card type and transaction method.
• Minimal Markup: Franpos adds a small, transparent fee to cover the cost of providing secure and efficient processing services.

We Do Not Overcharge

The fees you see are determined by the card networks, not Franpos. High-reward cards and CNP transactions incur naturally higher fees, but we ensure our markup remains minimal and fair.

How to Optimize Your Processing Costs

While processing fees are unavoidable, here are some ways to reduce costs:

1. Encourage Debit Card Use: Debit cards are more cost-effective and reduce processing fees.
2. Increase Card-Present Transactions: In-store payments have lower fees compared to online or phone transactions.
3. Review Your Transactions Regularly: Use your Franpos merchant statement to understand your fee structure and identify areas for cost savings.

We’re Here to Help

Franpos is committed to helping your business succeed. If you have questions about your processing fees or want tips on how to optimize costs, our support team is always ready to assist. Transparency, fairness, and efficiency are at the heart of our pricing model—because your success is our priority.