Processing Fee
A processing fee is a one-time charge imposed by lenders when processing and approving a loan application. This fee covers the administrative costs associated with evaluating the loan request, verifying documents, conducting credit checks, and other activities involved in the loan approval process. It is typically a percentage of the loan amount or a flat fee and is payable by the borrower at the time of loan application or disbursal. (Financial Glossary)
Processing fee is a pre-set amount that a business pays every time a customer uses a credit or debit card to pay for their goods or services. The processing fee can be split into two parts: the interchange fee and the assessment fee. (National Merchants Association)
Payment processing fees are the costs associated with accepting payments from your customers. Online marketplaces have revolutionized the way we approach shopping, providing a convenient platform for consumers and businesses alike to engage in transactions. Whether you accept cash, check, credit card or another form of payment, you’ll probably have to pay some sort of fee for processing payments. This processing fee is usually different for every business and can change based on how customers pay you.
Such fees typically charge 2-3% of the transaction, but can be higher or lower depending on the company you work with and your specific needs. Payment processing fees cover things like renting POS software, maintenance, fraud prevention, and more. (Synder)
Sajumon, A. (2023, October 4). Processing fee. Financial Glossary. Retrieved from: https://www.fisdom.com/glossary/processing-fee/
What is a processing fee? National Merchants Association. Retrieved from: https://www.nationalmerchants.com/blog/what-is-a-processing-fee/
Vasilevsky, H. (2024, January 4). What Are Processing Fees? How to Understand and Optimize Processing Costs. Synder. Retrieved from: https://synder.com/blog/what-are-processing-fees/