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In other words, don’t try to shop around for lower wholesale fees or rates from various credit card processors. Markups Your markup fees are how your credit card processor is planning to make a profit from your business.

With the right processor, these fees will be modest. What’s worse is that some processors make it as difficult as possible to know how much markup you’re paying by using bewildering terms and pricing models that would baffle even the most experienced business owner.

These fees are determined by the credit card issuing bank and the credit card associations (Visa, Master Card, etc.).

They are consistent regardless of which provider you choose.

In fact, the vast majority of business owners are on a tiered plan, which may make it more difficult to review and understand some statement charges.

Failure to meet one or more standards may result in a ‘downgrade’ to mid-qualified or non-qualified tiers.

Wholesale Fees I’m using the term “wholesale” to help you picture the meaning behind this type of fee, but it can go by other names as well, like, “base fee” or “pre-markup” etc…

Your wholesale fees are exactly like they sound – the wholesale cost of your sales transactions.

This is because processors often fail to disclose which tiers the merchant’s transactions are falling into, making it near impossible to determine the markup rates.

Subscription/Membership This is a fairly new pricing system, but it’s catching on.

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