Rewards cards cost more to accept because the perks are built into the fees. Cash back, points, and travel rewards are funded through higher interchange rates set by the card brands. That cost does not disappear. It gets passed to the merchant. The more generous the rewards, the higher the interchange on that transaction. From the customer’s side, rewards feel free. From the merchant’s side, they increase processing costs. That is why premium and rewards cards usually come with higher fees. #Pay
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Assessment fees are set by the card brands like Visa and Mastercard. They take a small percentage of every transaction for the use of their payment networks. These fees apply to every merchant and every transaction, no matter the processor or pricing model. Assessment fees are not negotiable and cannot be removed. Because they are small and consistent, many businesses overlook them. Over time, they add up and make up a real portion of total processing costs. That is why some fees stay the same n
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