Where do the fees go and who gets the money?  What a great question and all you had to do was ask!  There are many different fees because there really are many costs involved in getting your customer’s m0ney into your bank account.

As you can imagine, there are more transfers than it appears. This is because there are more “gatekeepers” involved in an exchange (transaction). The only actual exchange is electronic data. When data travels through these gatekeepers, they charge a toll, just like a toll booth.

Just because it all happens within seconds, does not mean it only travels a short distance. On the contrary, a single transaction usually travels thousands of miles, back and forth from coast to coast.

Let’s look at where this data goes

1. Your Gateway  (only if you require because of software or website)
   

2. The Network  (speaks a language which must be compatible with your Processor)
   

3. Your Processor  (responsible for the entire transaction—start to finish)
   

4. The Acquiring Bank (of the Processor)
   

5. The Issuing Bank  (the cardholder’s bank)
   

6. Back to Acquiring Bank and Processor
   

7. Your Business Bank  (into your Account!)
   

Finally, let’s look at a breakdown of a typical transaction

Now that you know who is involved, let’s follow the money to see how big a cut everyone gets.

Let’s assume your customer makes a $100 purchase using a Visa card.

Now, you cannot tell which Visa card he gives you, but only he and Visa know that it happens to one of their business cards called “Commercial Card Electronic.”