What are dues and assessments in relation to credit card transactions?

Dues and assessments refer specifically to additional fees that credit card brands, such as Visa or Mastercard, charge to acquirers based on the total transaction amount processed. These fees are typically calculated as a percentage of the transaction value and are collected to help cover the costs of maintaining the network and providing services associated with credit card processing.

These fees are distinct from other charges within the payment processing ecosystem, such as transaction processing fees or merchant account setup fees, which serve different purposes. While transaction processing fees pertain to the costs of facilitating each payment, dues and assessments are more about the operational costs linked to the credit cards themselves and the brand's infrastructure. As a result, they directly impact the overall expense that a merchant incurs each time a credit card transaction is completed, making them a critical element to understand in the context of credit card processing.