When you pick up your merchant services or credit card processing statement, you have probably seen pesky fees appear under a variety of labels. In most cases, these cryptic fees are labelled NABU (Network Access and Brand Usage Fees).
NABU fees are also known as card brand fees and are paid directly to Visa, Mastercard, American Express and Discover. It’s important to note that although your credit card processor may collect the fee, it doesn’t mean they directly benefit. In most cases, the fee is passed in its entirety to the card brand.
Why Pay Card Brand Fees?
Look, we get it… you have enough overhead to deal with. Who wants to pay extra fees?
Here’s the thing: card brand fees are a necessary evil for merchants who want to offer a variety of payment options to customers. The fees go towards ensuring the credit card company can continue serving merchants. Think of it as a small cost for the opportunity to accept their form of payment.
Let’s face it, most customers carry multiple credit cards and they expect to be able to use any card in their wallet. If you fail to accept common forms of payment, you’re giving your competitors an advantage over you.
How much am I paying in Card Brand Fees?
You pay interchange fees or card brand fees every time a cardholder makes a payment with their credit card. The amount paid in fees can vary by industry, transaction risk level, bank, card issuer and your payment processor.
Fees are typically used to cover these costs:
Credit and Debit Assessments
These fees can’t be avoided no matter which card issuer you choose. They are applied to gross credit and debit transaction volume and are paid directly to the card association (Visa or Mastercard).
Can I Reduce Card Brand Fees?
Card brand fees are set by the credit card issuer. Unfortunately, these fees are not up for negotiation. Instead, we advise our clients to enforce best practices that can reduce costly penalties and fines.
Need Expert Help to Manage Your Fees?
We can help you gain control over your fees so that you don’t pay more than necessary.
If you are a foundation or nonprofit, ask us about our special offers for payment processing fees.
American Express Assessments