Most merchants understand interchange fees, but card brand fees are an entirely different story.
I get questions about card network fees on a daily basis, so don’t worry, it’s normal if you don’t quite understand exactly how these work. But whether you realize it or not, every business that accepts credit cards is paying card brand fees.
The problem is that lots of merchants don’t know how much they’re actually paying, what these fees are for, and can’t tell whether their processor is overcharging them. That’s exactly what I’ll explain below.
What Are Card Brand Fees?
Card brand fees are a component of payment processing costs that are paid directly to the card networks (Visa, Mastercard, Discover, and American Express). Also known as card association fees, assessment fees, card network fees, card network assessment fees, or just “assessments,” all of these terms are interchangeable and refer to the same fees.
Network assessment fees exist so the card brands can be compensated for processing transactions through their network.
The card networks have dozens of different association fees. Some are percentage-based, others are flat fees, and many only apply in specific situations.
There are three different types of card brand fees:
- Volume-Based Fees — These are charged as a small percentage of your entire transaction volume processed through the card network. Example: Visa charges a network assessment of 0.14% of all credit card transactions ($14 per $10,000 in Visa credit sales).
- Per-Item Fees — Other fees are charged on a per-transaction basis at a flat rate. Example: Visa’s Acquirer Processing (APF) is $0.0195 per credit authorization and $0.0155 per debit authorization.
- Miscellaneous Fees — Some card brand fees are only charged when specific conditions are met on certain types of transactions. Example: Mastercard’s CCP Fee is $0.09, but only charged on recurring payment transactions processed with outdated credentials.
Card brand fees typically represent about 0.13% to 0.15% of your total processing costs. This might sound small, but for high-volume businesses, these fees definitely add up.
Card networks charge payment processors directly for network assessments, and your processor passes them through to you (the business). At least that’s how it’s supposed to work.
Card Brand vs. Fees Interchange Fees
Card brand fees and interchange rates are both set by the card networks, but interchange fees are paid directly to the issuing bank, whereas card brand fees go to the network itself.
Interchange rates are calculated based on factors like the card type, transaction method, and business category. They typically range from 1.5% to 2.5% plus a flat fee (like 1.65% + $0.10 per transaction).
Chase, Bank of America, Wells Fargo, etc., are all examples of issuers. These are the banks that give credit cards to your customers. In addition to issuing the cards, issuing banks also handle all of the customer-facing interactions with the cardholder. Interchange fees are meant to compensate those banks for their role in the payment cycle.
Card brand fees are paid to the networks: Visa, Mastercard, Amex, and Discover. Compared to the interchange rates, card brand fees are significantly smaller in terms of cost (around 0.15% of your total volume).
Both interchange fees and card brand fees are considered wholesale rates because they are the exact costs being set by the networks—not your processor. Your payment processor has zero control over these fees, which is why they’re just supposed to pass them through to you at cost (although that’s not always the case, and I’ll explain shortly why you still need to watch these fees closely).
Card Brand Fees vs. Assessment Fees
Card brand fees and assessment fees are the exact same thing.
It all depends on the processor, how they’re being labeled on your statements, and how they’re being referenced in any communication emails or messages.
- Network fees
- Network assessments
- Card brand fees
- Card network fees
- Network association fees
- Association fees
- Brand fees
These are all different terms for the same fees.
I personally tend to use “assessment fees” when referring to charges based on total transaction volume and I say “card brand fees” or “network fees” for the one-off charges that only apply to certain types of transactions.
But again, they’re all the same thing.
Are Card Brand Fees Legit?
Yes, card brand fees are legitimate charges imposed by the card networks.
Visa, Mastercard, American Express, and Discover all charge assessment fees to use their payment networks. This is how they make money, and it’s a standard part of a merchant’s cost of accepting card payments.
That said, just because the card brand fees themselves are legitimate, it doesn’t mean that your processor is handling them the right way.
Some processors apply a deceptive practice called assessment padding, where they artificially inflate the card brand fees they’re charging you and pocket the difference. For example, Discover’s credit assessment fee is supposed to be 0.13% of your total volume, but I’ve seen processors charge 0.28% (keeping the extra 0.15% as profit).
This is incredibly unethical and, unfortunately, more common than it should be. The only way to catch assessment padding is to know what these fees are supposed to be and compare them against what you’re actually being charged.
Are Card Brand Fees Mandatory?
Yes, card brand fees are mandatory for every business that accepts credit cards and debit cards. There’s no way around them. As long as you’re processing Visa, Mastercard, Amex, or Discover cards, you’ll be paying assessment fees to those networks.
However, whether you see those fees on your statement is a different story.
If you’re on an interchange-plus pricing plan, your processor should be passing through all card brand fees at cost and itemizing them on your statements. This gives you full transparency into exactly what you’re paying and where the money is going.
But if you’re on a flat-rate, tiered, or bundled pricing plan, these fees are typically absorbed into your overall rate. Your processor doesn’t itemize them because they’re already baked into the inflated rate you’re paying. The processor pays the card networks directly and keeps whatever is left over as a profit.
Trust me, it’s 10x better to see the card brand fees on your statement. “Avoiding interchange fees” or “not having to pay assessments” are just marketing ploys by the processors trying to convince you into a pricing structure that’s most profitable for them (which means more expensive for you).
Examples of Card Brand Fees
There are dozens of different card brand fees that can be charged either based on your total volume or for specific situations. But here are some of the most common network fees that we see when auditing statements for our clients:
Visa Card Network Fees
- Credit Assessment Fee — 0.14%
- Debit Assessment Fee — 0.13%
- Acquirer Processing Fee — $0.0195 for credit and $0.0155 for debit
- International Service Assessment — 1% for US currency and 1.4% non-USD
- FANF Fee — Variable monthly fee on locations and volume
- Zero Dollar Verification Fee — $0.025
- Misuse of Authorization Fee — $0.15
- Transaction Integrity Fee — $0.10
- Zero Floor Limit Fee — $0.20
- Account Name Inquiry Fee — $0.10
Mastercard Association Fees
- Assessment Fee — 0.13%
- NABU Fee — $0.0195 (domestic) and $0.0295 (international)
- Digital Enablement Fee — 0.02%
- Safety Net Acquirer Fee — $0.0007
- International Service Assessment — 1%
- KB Transaction Fee — $0.0035
- AVS Fee — $0.01
- Acquirer License Fee — Variable
- Credential Continuity Program Fee — $0.09
American Express Card Brand Fees
- Assessment Fee — 0.15%
- International Assessment Fee — 0.40%
- Card-Not-Present (CNP) Fee — 0.30%
- Cross-Border Assessment Fee — 0.60%
Discover Assessment Fees
- Network Assessment — 0.13%
- Data Usage Fee — $0.0195
- Network Authorization Fee — $0.025
- International Processing Fee — 0.55%
- International Service Fee — 0.80%
The Problem With Card Brand Fees
To be clear, card brand fees themselves are not a problem. They are a legitimate cost of doing business and simply part of accepting card payments for your business.
The problem is how processors handle these fees and how difficult they make it for merchants to verify them.
Unlike interchange fees, card networks don’t publicly disclose all of their assessments. This forces merchants to rely on processors to be honest about what they’re charging. But since the payment processing industry is unregulated, there’s no penalty for processors who choose to be intentionally deceptive.
Many processors also scatter card brand fees across multiple pages under different section names throughout your statement. They don’t always use consistent terms for these fees either, making it tough to pinpoint exactly what fee they are referring to.
Even if the fees are legit and being charged the appropriate rate, this lack of consistency and transparency is often a way for processors to bury other hidden fees (markups directly to them) on your account. When you see dozens of legit-looking network fees lumped together, it’s much more difficult to spot a random fee that’s been added by your processor as a pure profit center.
It’s also worth noting that multiple fees can apply to a single transaction. For example, you’ll be paying the base assessment fee on every transaction. But you might also pay a certain safety fee to verify cardholder data, and other fees that only apply to card-not-present transactions.
When your fees start stacking up like this, it can be really easy to lose track of exactly what’s being paid (which is why processors thrive on assessment padding and other bogus fees).
Final Thoughts: What to do About Card Brand Fees
There’s really nothing that can be done about card brand fees. That said, you still need to read your statements closely every month to verify that the fees are accurate.
Don’t just glance at the summary. You need to go through every single line item.
Even though the dollar amount of these fees may be marginal (like $15), any inaccuracies here could be a red flag that your processor is applying other unethical practices to your account. If they’re willing to charge you an extra $3 on an assessment, then there’s a high probability that you’re paying thousands of dollars in extra fees elsewhere.
The reality is that most merchants don’t have the time or expertise to audit their statements thoroughly every month. It can take hours to go through each line item and then verify each fee independently through a trusted source.
That’s where our team here at MCC comes in. We can review statements on your behalf to find any discrepancies where the card brand fees are inaccurate or padded.
Plus, we’ll identify other cost-saving opportunities on your account to help lower your overall cost of payment processing. And don’t worry, we won’t ask you to change processors. We can find savings without having to switch anything.