Credit card merchant handling fee how to charge

How much does a merchant charge for swiping a credit card

Charging fee standards, standard class merchants: swiping fee is charged at 0.6% of the transaction amount, similar merchants are department stores, restaurants, entertainment and other industries. Preferential merchants: card processing fee is charged at 0.38% of the transaction amount, similar merchants are large supermarkets, gas stations and other merchants.

When you swipe your card to spend money in schools, hospitals, public **** facilities places, etc., because these places are of public welfare nature, they are all zero-rate, which means that there is no handling fee for swiping transactions with credit cards in these places.

Shops are required to pay a two to three percent fee to banks and credit card centers for accepting credit card purchases from customers. In November 2012, the central bank issued the "Notice of the People's Bank of China on the Effective Implementation of the Adjustment of Bank Card Swipe Handling Fee Standards," which said that the fee reduction only involves domestic bank card consumption transactions, and that the merchant swipe fee regulations implemented in 2003 have been repealed since February 25, 2013, and that the overall reduction in swipe fee rates is between 23% and 24%.

Specialty stores are required to pay two to three percent to banks and credit card centers for accepting credit cards from customers. Some vendors will ask cardholders to pay an additional fee to save money, because swiping a card requires an invoice, making it impossible for stores to evade taxes.

The UnionPay card does not charge the cardholder any handling fee for purchases made with the card nationwide, regardless of the location of the card. The settlement parties are the bank and the merchant, and according to the relevant agreement when the card machine was first installed, it should be the merchant who pays a certain percentage of the handling fee to the bank. Therefore, if you are asked to add a handling fee to your credit card purchase, the cardholder has the right to refuse and complain to China UnionPay's customer service hotline.

Credit cards, also known as credit cards, are proof of credit issued by commercial banks or credit card companies to credit-qualified consumers. It takes the form of a card with the name of the issuing bank, expiration date, number and name of the cardholder printed on the front and a magnetic strip and signature strip on the back. Consumers with credit cards can shop or spend money at specialized commercial services, and then the bank settles with the merchant and the cardholder, who can overdraw up to a specified limit.

In most cases, citizens with full capacity for civil behavior (18 years of age or older in mainland China) and some direct financial resources can apply for a credit card from the issuing bank. Sometimes, a legal person can also be an applicant

The targets of credit card applications can be categorized into units and individuals. The units applying for credit cards should be organizations with independent legal personality in China, enterprises and public service units, three-funded enterprises and individual business households. Each unit applying for a credit card can receive a main card and multiple (5-10) subsidiary cards as needed.

How to calculate credit card processing fee

Specific calculation formula: credit card service fee = card rate x credit card amount

1, credit card processing fee is usually the merchant to the bank and the third-party institutions to pay the fee, that is, deducted from the card amount of the cardholder's card, and the rest of the merchant for the actual amount received. Some merchants will refuse to swipe a card unless the cardholder voluntarily bears the fee, so it is also important to understand the rates and algorithms for swiping fees.

2. The general credit card service fee is determined by the POS card rate and the card amount. The rates for traditional card swiping and flash payment are different. If you swipe your card in the traditional way, such as inserting the card directly at the POS, the standard rate is 0.6%; for flash payment, 0.38% for less than 1,000 and 0.6% for more than 1,000.

1. After stores accept customers' card swipes, they need to pay 2-3% handling fee to banks and credit card centers. The central bank issued the "Notice of the People's Bank of China on the Implementation of the Adjustment of Bank Card Handling Fee Standards" in November 2012, stating that the reduction of the handling fee only involves the domestic bank card consumption transactions.The merchant card handling fee regulations implemented in 2003 have been repealed since February 25, 2013 at the same time, and the overall reduction of card fee rates ranges from 23% to 24%.

2. After accepting a customer's card, the specialty store has to pay a 2-3% handling fee to the bank and credit card center. Some vendors will ask cardholders to pay an extra handling fee to save costs, as card swipes must be invoiced so that stores can't evade taxes.

3. According to the current revenue distribution method for bank card interbank transactions of China UnionPay networked institutions, the settlement handling fees for bank card acquiring business are all borne by the merchants, but the rates implemented in different industries are different, with the rate standard ranging from 0.5% to 4%. Generally speaking, the card swipe fee rate is 0.8%-1% for the retail industry, 0.5% for supermarkets, and 2% for the catering industry.

4. In November 2012, the central bank issued the "People's Bank of China on the effective adjustment and implementation of bank card swipe service fee standard notice", saying that the fee reduction only involves the domestic bank card consumption transactions, the relevant provisions of the merchant card swipe service fee implemented in 2003 since February 25, 2013 at the same time canceled the swipe rate of the overall decline of 23% to 24%.

5, the central bank notice shown in the annex to the bank card handling fee standards, to maintain the current card handling fee industry differentiated pricing. The industry is categorized into four main categories: food and beverage and entertainment, general, livelihood and public welfare. The overall rate of reduction is 23% to 24%, of which the rate of reduction in food and beverage entertainment is 37.5%.

6. The first category is restaurant and entertainment, including catering, entertainment, jewelry, handicrafts, real estate and auto sales. The composite rate was reduced from 2% to 1.25%, a decrease of 37.5%. Among them, the card issuer service fee of 0.9%, bank card clearing agency network service fee of 0.13%, the base price of the acquiring service fee (can be up and down 10%) 0.22%, real estate and auto sales unit price from the original 10 yuan to 80 yuan.

7, the second category for the general category, including department stores, wholesale, social training, intermediary services, travel agencies, scenic area tickets, etc., the integrated rate was reduced to 0.78%, of which the issuer service fee is 0.55%, the bank card clearing agency network service fee 0.08%, the base price of the acquiring service fee (which can be up or down 10%) is 0.15%, the wholesale category is capped at $ 26.

8, the third category is the livelihood category, mainly including supermarkets, hypermarkets, water, electricity and gas payment, gas, transportation tickets, etc., the overall rate of 0.38%. The fourth category is zero-rate hospitals, education and other public welfare categories.

How much of a processing fee does a credit card merchant deduct?

The credit card swiping fee is an agreement between the bank and the merchant using the POS to swipe the card, where the bank charges the merchant a fee of 2% to 3% of the amount swiped. This fee is only for the merchant, not for the consumer, who does not need to pay the fee for swiping the card. Stores are required to pay a two to three percent fee to banks and credit card centers after accepting a customer's card.

Swipe credit card to charge merchants handling fees:

1, the first category for dining and entertainment, including catering, entertainment, jewelry, arts and crafts, real estate and automobile sales, the overall rate of 1.25%, of which the issuer of the card bank service fee of 0.9%, the bank card clearing agency network service fee of 0.13%, acquiring service fee base price of 0.22%, the real estate and automobile sales of a single rate from the The original 10 yuan per pen, all up to 80 yuan cap.

2, the second category for the general category, including department stores, wholesale, social training, intermediary services, travel agencies, scenic area tickets, etc., the overall rate down to 0.78%, of which the card issuer service fee of 0.55%, the bank card clearing agency network service fee of 0.08%, acquiring service fee base price of 0.15%, while the wholesale category capped at 26 yuan.

3, the new version of the bank card card processing fee standard third category for the livelihood of the class, mainly including supermarkets, hypermarkets, water, electricity and gas payments, gas, transportation ticketing, etc., the overall rate of 0.38%.

4, the fourth category is zero rate hospitals, education and other public welfare category.

5. In November 2012, the central bank issued the "People's Bank of China on the effective implementation of the adjustment of bank card processing fee standard notice", said the fee reduction involves only the domestic bank card consumption transactions, the implementation of the merchant card processing fee in 2003, since February 25, 2013 at the same time repealed the card rate of the overall reduction in the range of 23% to 24%. Merchants are required to pay 2% to 3% to banks and credit card centers for accepting credit cards from customers. In order to save costs, some vendors may require cardholders to pay an additional handling fee, as swiping a card requires the issuance of an invoice, making it impossible for the store to evade taxes. According to the current Measures for the Distribution of Revenue from Interbank Transactions of Bank Cards of China UnionPay Institutions in the Network, the settlement handling fee for bank card acquiring business is borne entirely by the merchants, but the rate varies in different industries, ranging from 0.5% to 4%. Generally speaking, the card handling fee rate for the retail industry is 0.8%-1%, for supermarkets it is 0.5%, and for restaurants it is 2%.

How are credit card fees calculated?

The handling fee for swiping a credit card is paid by the merchant to UnionPay at a rate ranging from 1%-2.5%, and does not need to be borne by the individual. It is a violation of the law for a merchant to ask a consumer to pay the processing fee on his or her own. If a merchant asks a consumer to pay the fee, the consumer can refuse and file a complaint with the UnionPay customer service center.

If the POS merchant will deduct the UnionPay card transaction fee for each transaction, the general supermarket merchant deducts 0.38% of the fee, the general merchant deducts 0.78% of the fee, the jewelry, food and entertainment merchant deducts 1.25% of the fee, the wholesale market merchant deducts 0.78% of the maximum cap fee of 26 yuan, does not distinguish between credit card and debit card, are the same standard. The same standard is applied to both credit and debit cards.

Extended information:

Precautions for credit card use:

Don't be too early: try not to swipe your card before 9 a.m., because as a matter of common sense, most of the stores are not yet open.

Don't be too late: try not to swipe your card after 11 p.m. because, as a general rule, most stores are already closed, and online transactions are not affected by time.

Don't swipe whole numbers: don't swipe 10,000, 5,000 and other whole numbers, try to swipe each time you suggest not to bring a decimal point, and don't repeat the amount of money you swipe, and don't be regular.

People's Daily News - Who pays for credit card fees at 4S stores?

Baidu Encyclopedia - Credit Card Processing Fee

How do merchants charge for credit card processing fees

Whether you swipe your card on a POS machine or pay with a credit card on WeChat, merchants have to pay a processing fee.

And the standard for charging handling fee, standard category merchants: card processing fee is charged at 0.6% of the transaction amount, similar merchants are department stores, restaurants, entertainment and other industries. Preferential merchants: card processing fees are charged at 0.38% of the transaction amount, similar merchants are large supermarkets, gas stations and other merchants.

When you swipe your card to spend money in schools, hospitals, public **** facilities places, etc., because these places are of public welfare nature, they are all zero-rate, which means that you don't need to pay handling fees for swiping transactions with your credit card in these places.

WeChat Pay is a payment function integrated into the WeChat client that allows users to complete a quick payment process through their cell phones.

WeChat Pay provides users with safe, fast and efficient payment services, based on the fast payment of bound bank cards.

Supporting payment scenarios: WeChat public platform payment, APP (third-party application mall) payment, QR code scanning payment, and credit card payment, where the user displays the barcode and the merchant scans it to complete the payment.

Users only need to associate a bank card with WeChat and complete identity authentication to turn their smartphone with WeChat app into an all-purpose wallet, after which they can purchase the goods and services of cooperative merchants. Users only need to enter the password on their own smartphone when making payment, and they can complete the payment without any swiping step, and the whole process is easy and smooth.

Expanded Information:

WeChat supports the ability to quickly send free (and low network traffic) voice messages, videos, pictures and text over the Internet across multiple carriers and operating system platforms, as well as the ability to use profiles and location-based social plug-ins to enjoy streaming content via ****. "Shake it", "Circle of Friends", "Public Platform", "Voice Notepad" and other service plug-ins.

As of the second quarter of 2016, WeChat has covered more than 94 percent of smartphones in China, with 806 million monthly active users.

WeChat provides public platforms, circles of friends, and push messages, etc. Users can add friends and follow public platforms through "Shake", "Search Number", "Nearby People", and scanning QR codes. The user can add friends and pay attention to the public platform through "shake", "search number", "nearby people", sweep the QR code, and at the same time, WeChat will share the content to friends and share the wonderful content that the user sees to WeChat circle of friends.

February 4, 2015, WeChat team in its public platform issued plagiarism penalty rules: the first deleted text and warnings, the second blocked 7 days, the third blocked 15 days, the fourth blocked 30 days, the fifth permanent block.

For those who do not comply with the rules of the platform, and use the "original statement" function maliciously and violate the law, once found and reported, WeChat's public platform will permanently recycle its "original statement" function and carry out the stage of sealing the number of processing.

In order to promote more quality original articles on WeChat's public platform, WeChat Public Platform has launched the "original declaration" function, which is designed to solve the problem of original article copyright identification. The first round of public testing is only open to media numbers that have been certified by WeChat.

After a successful mass mailing of an article, the original declaration system will intelligently compare the article, which will take a certain amount of time (less than half an hour), and then automatically add the "original" logo to the article after it passes the comparison.

If the application for an original statement fails, the system will send a message to notify the applicant.

If the applicant has any objections, he/she can use the "Complaints" portal in the message and WeChat will verify and deal with them in accordance with the relevant laws and regulations.

When an original article is preceded by another person's declaration of originality, the original author can provide relevant evidence to WeChat's public platform to file a complaint of copyright infringement.

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