Every credit card transaction involves three essential players: the payment processor, the credit card association, and the customer’s issuing bank. When a merchant swipes or scans a card for payment, the transaction information is transmitted through the payment processor’s merchant account gateway to the credit card association’s network. From there, the information is passed on to the bank that issued the card to the customer. The bank verifies the customer’s information and then authorizes or declines the transaction. That decision then flows back through the system to the merchant’s POS system to either complete or reject the sale.

While this process takes only a few seconds, it is a complex system that involves many participants, each of whom collects a fee as a transaction passes through their hands. Banks and card networks charge a non-negotiable interchange fee that reflects their overhead cost and is further adjusted for risk. Merchants in high-risk industries often face higher interchange fees due to the increased risk of chargebacks and fraud.

Many payment processors add to this burden by charging additional hidden fees on every transaction and withdrawing funds to cover burdensome reserve requirements. At Finzeo, we’re committed to full transparency when it comes to our merchant account gateways for card processing. We show you exactly what you’re paying for each transaction: no hidden fees and no sneaky reserve deductions.