What is the difference between interchange and assessment fees?

Interchange goes to the bank that issued the customer's card and is usually the largest part of the cost. Assessment fees go to the card brand, such as Visa or Mastercard, and are generally a small percentage of volume.

Can my processor change assessment fees?

No. Assessments and network fees are set by the card brands and are passed through. Your processor sets only its own markup. Card brands update their schedules from time to time, commonly in April and October.

Are network fees the same as assessments?

They are related but not identical. Assessments are usually a percentage of volume. Network fees are typically small per-transaction or per-event charges. Both come from the card networks.

Do flat-rate plans include assessment fees?

Yes. A flat rate bundles interchange, assessments, and the processor's margin into one blended price, so the individual layers are not shown on your statement.

Payment ProcessingNovember 8, 20264 min read

What Are Network and Assessment Fees? A Plain-English Explainer

Network and assessment fees are charged by the card brands, separate from interchange and your processor's markup. Here is what they are and where to find them.

By ONKORE Team

Illustration for What Are Network and Assessment Fees? A Plain-English Explainer

The short answer

Network fees and assessment fees are charges from the card brands (such as Visa and Mastercard) for using their networks. They are separate from interchange and separate from your processor's markup.

Every card payment has three layers of cost:

| Layer | Who gets it | What it is | |-------|-------------|------------| | Interchange | The bank that issued the customer's card | The largest part of the cost. Varies by card type and how the card was accepted. | | Assessments and network fees | The card brand | A small percentage of volume, plus small per-transaction network fees. | | Processor markup | Your processor | The part your processor sets. This is the number to compare when you shop around. |

How assessments are billed

Assessments are generally a small percentage of your card volume. Network fees are typically small fixed amounts charged per transaction or per event, such as an authorization. The exact amounts and names differ by card brand and change from time to time, commonly with updates in April and October.

Because they are set by the card brands, they are the same no matter which processor you use. That makes them a useful reference point: if a processor quotes a flat price that seems lower than interchange plus assessments plus a reasonable markup, ask how the difference is covered.

Where to find them on your statement

Depending on how your statement is laid out, you may see these as:

A line labeled assessments, or the card brand name followed by assessment
Network access, brand usage, or similar per-transaction fee lines
A combined line for card brand fees

Under interchange-plus pricing, these pass-through costs are usually listed separately from your processor's markup. Under a flat rate, they are bundled into one blended rate, so you cannot see them at all.

Why it matters when comparing quotes

When you compare processors, compare the markup only, since interchange and assessments are the same for everyone. A quote that says 0.30% plus 5 cents over cost is a markup. It does not include interchange or network fees, which are added on top.

ONKORE's pricing calculator uses estimates for network fees, so your actual statement may differ slightly.