What are the collection fees for a merchant?
With each card transaction, the merchant must pay fees for the acceptance and processing of payments on the collected amount. Hence the term collection fees, commonly called the bank card commission.
Its value depends on several factors, including the volume of transactions, the payment amount, the type of bank card used, and the chosen payment service provider.
The payment interchange commission or CIP/MIF (Multilateral Interchange Fee): generally fixed and common to all banks. This term refers to a fee paid by the merchant's bank to the customer's bank to cover the use of the payment network. However, the CIP does not apply if both parties are with the same bank.
Network fees: Less significant than the CIP, card networks such as CB, Visa, and MasterCard bill the merchant to ensure the collection of the transaction amount.
The chosen payment provider's margin: your bank or payment provider can freely set its own commissions. These may include transaction commissions, monthly subscription fees, or rental or purchase fees for the electronic payment terminal.
Due to the bank card commissions mentioned above, this payment method can indeed be costly for merchants. However, the benefits associated with accepting card payments can offset these collection fees.
That said, it is possible to limit these card commissions by selecting the right payment provider.
Several solutions are within reach for merchants and businesses to reduce their bank card commission rate. To benefit from a more favorable commission rate, consider choosing a cheaper payment service provider (PSP), such as Stancer.
At Stancer, our mission is to provide practical and affordable payment solutions for small businesses. We offer a range of payment products, including payment terminals, online payments, and payment links, which allow merchants to easily accept card payments, whether in their physical store or through secure online payments.
Our payment terminal is designed to be perfectly suited to small transactions. You don't pay the fixed commission for transactions under €7, which makes our payment terminal ideal for small businesses accustomed to receiving small-amount collections. In addition, our subscription-free POS is provided for free with a minimum of 150 transactions.
One last thing? It's easy to use, secure, fast, and features advanced functionality (dashboard) to simplify payment management.