Understanding Credit Card Fees and Negotiations

Credit card fees vary depending on the tier of the credit card and the negotiating power of the entity involved. Different levels of negotiating power and the array of goods and services bundled into the transaction result in varying credit card fees. The pricing model for credit card transactions has shifted from a fixed monthly charge plus a percentage fee to a more complex structure, with some companies absorbing the basic costs and adjusting percentage rates to cover operations and support. The cost to process credit cards is significantly different from the cost to process debit cards, a distinction resulting from financial regulation post the 2008 banking crisis.