How CNP Merchants can Better Process Visa & MasterCard

2. Per-Item Transaction Fees and Low ATVs:

Payment processors frequently add fixed, per-item fees to every credit card transaction. It’s tempting for merchants to overlook these small transaction fees. A per-item fee of $0.15 may not sound like much, but consider the two merchants we discussed in Part 1. A per-item fee of $0.15 represents an additional 1% charge for the merchant selling $15.00 power adapters, bringing its total fee to 3.1%. This same $0.15 fee represents a paltry 0.03% up-charge for the merchant selling $500.00 computers, bringing its total fee to 2.13%. Merchants with low ATVs should therefore scrutinize per-item-based processing fees.