You may notice a higher processing fee on certain transactions due to the type of card used or the transaction’s origin. These fees are determined by the card networks (Visa, Mastercard, etc.) and apply in the following cases:
- The cardholder used an international card (issued outside your business’s region).
- The payer used a premium card, which typically includes corporate, business, or high-reward consumer cards.
What is a premium card? Premium cards offer additional benefits to the cardholder, such as rewards programs, travel perks, and exclusive services. These cards often come with higher interchange fees, which are set by the card networks and passed through as part of the transaction processing cost.
Examples of premium cards include:
- Corporate or business cards used for company expenses
- High-tier rewards cards that offer cashback, airline miles, or travel perks
- Luxury or elite cards that provide exclusive benefits such as airport lounge access and concierge services
How do I know if a transaction is subject to a premium rate? When a payment is processed, the card network determines the card type at the point of capture. If a premium card is used, the applicable rate is automatically applied. This classification is based on data provided by the issuing bank and card networks, and businesses do not have control over these classifications.
Example: For instance, if a guest pays using a Visa Business Platinum Card, this card falls under the premium category because it is a corporate-issued card with additional perks such as travel insurance, purchase protection, and rewards programs. As a result, the transaction would be processed at the premium rate rather than the standard consumer rate.