Which fee covers processing and disputes?

Which fee covers processing and disputes?

• A. Interchange fee
• B. Processor fee
• C. Scheme fee
• D. Network cost

Answer: (B)

In card payments, costs come from different parts of the system: the card networks and issuers set and receive fees for processing the card, while the payment processor charges for handling the actual processing work. The processor fee is the charge you pay to the processor for processing the transaction and managing the lifecycle of that payment, including handling disputes and chargebacks. Interchange fees are set by the card networks and go to the issuer, not the processor. Scheme fees and network costs describe other network-related charges, but they don’t represent the service that processes the payment and handles disputes. So the fee that covers processing and disputes is the processor fee.

In card payments, costs come from different parts of the system: the card networks and issuers set and receive fees for processing the card, while the payment processor charges for handling the actual processing work. The processor fee is the charge you pay to the processor for processing the transaction and managing the lifecycle of that payment, including handling disputes and chargebacks. Interchange fees are set by the card networks and go to the issuer, not the processor. Scheme fees and network costs describe other network-related charges, but they don’t represent the service that processes the payment and handles disputes. So the fee that covers processing and disputes is the processor fee.