How are assessment fees generally structured?

Assessment fees are typically structured as a percentage of the transaction amount. This means that the fee is calculated based on the total value of transactions processed. The rationale behind this structure is that it aligns the fees with the revenue generated through card processing. As the transaction amount increases, the assessment fee increases proportionally, which allows for a fairer distribution of costs that reflects the volume and value of transactions.

This percentage-based structure also incentivizes processors and merchants to increase sales, as the additional fees directly correlate with additional sales volume. This method of structuring fees is common among card networks and payment processors, making it a standard practice in the payments industry.

In contrast, the other options do not represent the typical structure for assessment fees. A flat fee per transaction applies more to transaction fees rather than assessment fees. A monthly fee does not fluctuate with transaction volume, and varying rates from different processors refer to the competitive pricing strategies that may affect other fee types, but do not lead to a standard structure for assessment fees.