Credit Card Processing Fees Explained: Interchange Fees, Network Fees & Processor Markups

Ever looked at a $100 card sale and wondered why you only receive about $97 and change? Credit card processing fees can feel confusing—and expensive—but once you understand how the system works, it makes a lot more sense.

In this Jay Get It breakdown, we explain why credit card fees are so high and where the money actually goes. Most people assume card networks like Visa and Mastercard keep the fees, but that’s not true. Processing costs are typically split across three main players—and the biggest share often goes to the issuing bank (the bank that gave the customer the card).

In this video, you’ll learn:
* The 3 main fee buckets: interchange fees, network fees, and processor fees
* Why interchange fees are usually the largest cost (fraud risk, credit risk, account services, and rewards)
* What makes fees go up: online vs in-store, fraud exposure, and premium rewards cards
* Why network fees exist (routing, compliance, infrastructure, cybersecurity)
* How processors charge for tools like terminals, dashboards, and support
* A simple example breakdown: $2.33 on a $100 transaction—and what that fee represents

Chapter Timestamps
0:00 — Why Credit Card Fees Are So High
0:12 — Who Actually Gets Credit Card Processing Fees?
0:24 — The 3 Types of Credit Card Fees Explained
0:37 — What Are Interchange Fees?
1:02 — What Are Network Fees? (Visa & Mastercard)
1:14 — What Are Processor Fees?
1:25 — Fee Breakdown Example: $100 Transaction Explained
1:40 — Why Credit Card Fees Exist (Risk & Infrastructure)
1:50 — Why Businesses Still Accept Credit Cards
2:08 — Rewards Cards, Online Fees & Flat Pricing
2:21 — Key Takeaways on Credit Card Processing Costs
2:32 — Disclaimer

If you’re a business owner, a banker, or just someone trying to understand payments, this will help you stop guessing and start making informed decisions.

Disclaimer: This content is for educational purposes only and is not legal, compliance, or financial advice. Please consult your compliance team or a qualified professional before applying any regulatory guidance.

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Видео Credit Card Processing Fees Explained: Interchange Fees, Network Fees & Processor Markups канала Jay Get It