How Credit Card Dues & Assessment Fees Affect Your Bottom Line
At Corepay, we developed this guide to provide our clients with a clear understanding of credit card assessment fees, a commonly misunderstood aspect of merchant statements.
Business owners often encounter various fees when reviewing a merchant statement, including assessment fees. These charges appear under different names, such as “Visa Assessment Fee,” “Mastercard Assessment Fee,” or “Dues and Assessments.”
Understanding these fees is crucial for businesses managing payment processing costs effectively.
Credit card assessment fees are imposed directly by the card networks—Visa, Mastercard, Discover, and American Express. These fees help fund the infrastructure that supports secure, efficient, and globally connected payment systems.
Unlike interchange fees, which are paid to issuing banks, assessment fees are set by the card brands themselves and apply to every transaction processed through their networks.
What Are Credit Card Assessment Fees?
Credit card assessment fees are charges from card brand networks such as Visa, Mastercard, Discover, and American Express to cover transaction processing costs. They are unavoidable fees and are passed to merchants by their payment processor and may apply per transaction or under specific conditions, such as international card use.
Dues: Per-Transaction Fees
Dues are per-item fees imposed by card networks for processing each transaction, covering both authorization and settlement. While some dues apply to all transactions, others vary based on the transaction type or specific characteristics.
How Credit Card Dues & Assessment Fees Function
Every time a business processes a credit card transaction, several fees are deducted before the funds reach their merchant account. These fees include assessment fees, interchange fees (collected by the card-issuing banks), and processor fees. Assessment fees are unavoidable and are passed through from the card networks to the merchant.
What’s The Difference Between Assessment Fees and Interchange Fees?
Some merchants confuse assessment fees with interchange fees. Here’s how they differ:
- Assessment fees are non-negotiable fees set by the card networks and apply to every transaction.
- Interchange fees are charged by the issuing banks and can vary based on transaction type, industry, and card type.
Together, these fees typically account for 70-90% of the total credit card processing costs businesses incur each month.
How Visa, Mastercard, Amex, and Discover Assessment Fees Compare
Different card brands apply assessment fees based on the transaction type and other factors. We put together this table to break down the common assessment fees charged by Visa, Mastercard, Discover, and American Express.
| Fee Name | Fee Amount | Reason for Assessment |
|---|---|---|
| Credit Assessment Fee | $0.0195 + 0.14% | Assessed on all Visa credit card volume |
| Debit Assessment Fee | $0.0155 + 0.13% | Assessed on all Visa debit card volume |
| FANF Fee | Varies by volume | Based on Visa processing volume |
| Base II System File Fee | $0.0018 per transaction | Based on Visa processing volume |
| Transaction Integrity Fee | $0.10 per transaction | Penalty for transactions not meeting CPS requirements |
| Misuse of Authorization Fee | $0.09 per transaction | Penalty for unmatched settled sales |
| International Service Assessment (ISA) Fee | 0.80% per transaction | For US merchants accepting foreign Visa cards |
| International Acquirer Fee | 0.45% per transaction | For US merchants accepting foreign Visa cards |
| Fee Name | Fee Amount | Reason for Assessment |
|---|---|---|
| Credit & Debit Assessment Fees (under $1,000) | $0.0195 + 0.1275% | For transactions under $1,000 |
| Credit & Debit Assessment Fees (over $1,000) | $0.0195 + 0.1475% | For transactions over $1,000 |
| Processing Integrity Fee | $0.055 per transaction | For late-settled transactions |
| Digital Enablement Fee | 0.01% of CNP volume | For CNP MasterCard transactions |
| Processing Integrity Fee Detail Reporting | $0.012 per transaction | For transactions requiring integrity fees |
| Card Validation Code Fee | $0.0025 per transaction | For CVV verification |
| AVS Fee (Card-Present) | $0.005 per transaction | For AVS on Card-Present transactions |
| AVS Fee (Card-Not-Present) | $0.01 per transaction | For AVS on Card-Not-Present transactions |
| Account Status Inquiry Fee | $0.025 per transaction | For verifying AVS/CCV details without a sale |
| Cross Border Assessment Fee (Domestic) | 0.60% per transaction | For US merchants accepting foreign MasterCards |
| Cross Border Assessment Fee (Non-USD) | 1.00% per transaction | For MasterCard cards used outside the US |
| Fee Name | Fee Amount | Reason for Assessment |
|---|---|---|
| Credit & Debit Assessment Fee | $0.0195 + 0.13% | Assessed on all Discover card volume |
| International Service Fee | 0.80% per transaction | For US merchants accepting foreign Discover cards |
| International Processing Fee | 0.55% per transaction | For USD transactions from foreign Discover cards |
| Network Authorization Fee | $0.025 per transaction | For authorized Discover transactions |
| Fee Name | Fee Amount | Reason for Assessment |
|---|---|---|
| Credit & Debit Assessment Fee | 0.15% of total volume | Flat percentage of total American Express volume |
| International Assessment Fee | 0.40% per transaction | For US merchants accepting foreign Amex cards |
| Card-Not-Present (CNP) Surcharge | 0.75% of noncompliant volume | For all Card-Not-Present American Express transactions |
| Noncompliance Fee | $0.0018 per transaction | For not following Amex settlement protocols |
International Service Assessment Fees
Merchants who accept payments from customers using foreign-issued credit or debit cards may incur International Service Assessment (ISA) fees. These fees account for the costs associated with cross-border transactions, currency conversions, and additional security measures.
What Are International Service Assessment Fees?
International Service Assessment (ISA) fees are charges applied to transactions where a debit or credit card issued outside the U.S. is used for a purchase within the country.
These fees are imposed by card networks—Visa, Mastercard, Discover, and American Express—to cover the costs associated with processing cross-border transactions.
Businesses in certain locations or industries are more likely to encounter these fees. For example, merchants operating in tourist-heavy areas, near international borders (such as Canada or Mexico), or those catering to a diverse customer base may frequently process payments from foreign-issued cards.
Additionally, businesses with a global eCommerce presence will inevitably receive payments from international customers, leading to the application of these assessment fees.
Typical international assessment fees
- Visa: 0.80% per transaction for non-U.S. issued cards
- Mastercard: 0.60% for domestic cross-border transactions, 1.00% for non-USD transactions
- Discover: 0.80% per transaction
- American Express: 0.40% per transaction
How Assessment Fees Are Reflected in Pricing Models
The way assessment fees appear on a credit card processing statement depends on the pricing model used by the payment processor. The three primary models include:
- Interchange-Plus Pricing: Fees are listed as separate line items, providing transparency.
- Tiered Pricing: Fees are bundled into broad rate categories, making them harder to distinguish.
- Flat-Rate Pricing: Processors absorb assessment fees into a single percentage rate.
Managing Credit Card Processing Costs
While assessment fees are unavoidable, businesses can take several steps to reduce their overall payment processing expenses:
- Opt for Interchange-Plus Pricing: This model offers more visibility into each fee.
- Minimize International Transactions: Limiting foreign payments helps reduce ISA fees.
- Improve Transaction Security: Avoid errors that trigger penalty fees, such as processing incomplete authorizations.
- Negotiate Processor Fees: Although assessment fees are fixed, merchants can often negotiate lower processor markups.
Why Choose Corepay?
At Corepay, we know that managing credit card processing fees can be overwhelming, especially with assessment fees adding to the overall cost. That’s why we offer transparent, cost-effective solutions tailored to your business needs.
- Interchange-Plus Pricing for Maximum Transparency—Unlike tiered pricing models that bundle fees, our interchange-plus pricing structure ensures you see exactly what you’re paying for, including assessment fees.
- Custom Payment Processing Solutions—We cater to businesses of all sizes, including high-risk industries, offering competitive rates and seamless integration with your existing systems.
- Advanced Fraud Prevention and Chargeback Management—With tools like CB-Alert, we help merchants reduce fraud risks and protect their revenue.
- Expert Support and Compliance Assistance—Our team stays up to date with ever-changing industry regulations, ensuring your business remains compliant while minimizing unnecessary fees.
- Dedicated Payment Gateway—Our in-house payment gateway is designed for high-risk, high-volume merchants, ensuring secure, reliable transactions at scale.
By choosing Corepay, businesses can take control of their payment processing costs while ensuring a secure, efficient, and scalable transaction experience.
Understanding credit card assessment fees is essential for managing processing costs effectively. While these fees cannot be avoided, businesses can take strategic steps to optimize their pricing models and minimize unnecessary expenses.
