APPENDIX TO POLICY
Bankcard Merchant Rates
Once a department begins accepting Payment Cards, they are referred to as a merchant. There are two types of expenses involved in being a merchant:
- Equipment fees (Merchants must establish expense Account Value 770102 for Long Term Rents/Leases - Equipment.)
- Transaction processing fees (Merchants must establish expense Account Value 720312 for Licensing and Fees.)
Equipment and payment gateway fees for accepting Payment Cards:
- Monthly payment gateway fee (for on-line transactions): $31 (for basic service)
- Monthly rental of terminal for payment card transactions: $42-$65
- One time charge for purchase of payment card terminal: $400-$900 (depending on terminal type)
- One time setup charge for terminal or online account: $99
Monthly rental fees are charged even if the department has not processed any transactions. Please call the University NTS department for information and cost on an additional telephone line at 612-626-7337.
Transaction Processing Fees
There are different fees paid for each transaction depending on the type of card being used and the type of transaction being processed. However, transaction fees will always include a transaction percentage fee and a per item fee.
Assuming 50 transactions/month @ $100/transaction:
|Equip./Gateway Fee||% Fee*||Per Item Fee||TOTAL/MO.|
|Card Present (Swipe)||$42 (if leased)||50 x 100 x 1.743%||50 x $0.10||$134.15|
|Card Not Present (online)||$31||50 x 100 x 2.053%||50 x $0.30||$148.65|
* This fee is slightly higher for American Express and Discover transactions.