Card Charges Made Simple - What You’re Really Paying—And How to Pay Less

Card Charges Made Simple

What You’re Really Paying—And How to Pay Less

Card payments are fast, convenient, and essential in today’s world—but understanding what you’re actually being charged can feel like trying to decipher a phone bill from the ‘90s. Here's a quick breakdown to help make sense of card charges, and how to reduce them with smarter solutions like SOTpay.

What Are Card Charges?

When you take a card payment—whether in person, online, or over the phone—you’re typically paying three layers of fees:

1. Interchange Fee (Visa/Mastercard):
   Goes to the cardholder’s bank. Usually 0.2–0.3% for debit cards, higher for credit or international cards.

2. Scheme Fee (Visa/Mastercard):
   Paid to the card scheme (e.g. Visa, Mastercard) for handling the transaction. Usually a small percentage or flat fee.

3. Acquirer/Provider Fee:
   What your payment provider or merchant acquirer charges you. This can vary wildly—especially if you're using a virtual terminal or have high-risk transactions.

Total card fees typically range from 0.9% to 3.5%, depending on the transaction type and risk profile.

Why Are Some Transactions More Expensive?

Not all card payments are equal. Here's how they rank in terms of cost:

MOTO (Mail Order/Telephone Order) and non-secure online transactions cost more because they're riskier. Higher risk = higher fees + higher chance of chargebacks.

Hidden Fees to Watch Out For

• Minimum Monthly Charges

• Authorisation Fees

• Gateway Fees

• PCI Non-Compliance Charges

• Chargeback Fees

If you haven’t reviewed your merchant statement in a while, now’s the time.

How to Reduce Card Charges

Here’s where smarter tech like SOTpay comes in.

SOTpay lets you take secure, compliant payments remotely—but with added fraud protection and 3D Secure authentication, meaning:

• Remove card-not-present fees

• Fewer chargebacks

• No PCI headaches

• No fees for failed transactions

• Branded pay-by-link experience

In many cases, businesses have cut their fees by 20–40% just by switching how they handle phone and email payments.

In Summary:

Card charges don’t need to be a mystery. Understand what you’re paying for, and use secure tech like SOTpay to reduce costs, protect your business, and give your customers a better experience.

It’s not about stopping card payments—it’s about doing them smarter.