Understanding Standard and Premium Transaction Fees

Topic

When it comes to processing payments, your customers may use various different card types, which will have different fees associated with standard, premium and AMEX cards.

Standard and Premium Cards

• Standard Cards: Consumer cards issued by Visa and Mastercard.
• Premium Cards: Commercial, corporate or business cards issued by Visa and Mastercard.

American Express Cards (AMEX)

American Express (AMEX) cards are treated differently in terms of transaction fees:

• AMEX cards have unique processing fees due to higher service costs. If you accept AMEX, be sure to include these higher fees in your total transaction costs to best cover this.

How will I know card type my customer may use?

Generally, expenses that are not for personal use are paid for with commercial, corporate, or business cards. Here are some typical scenarios:

• Businesses typically use commercial or corporate cards for purchases, even if issued to individuals.
• Sole proprietors often use these cards for startup or small business expenses.
• Individuals planning business travel or corporate events may also choose these cards.

How does Tradify determine card types?

At Tradify, we assess whether a card is standard, premium, or AMEX based on the information provided by card networks when the transaction is captured. We regularly review this mapping to ensure that the right fees are applied to all transactions.

Additional Information

See here for more info on Tradify Card Payments: Tradify Credit Card Payments Overview