The fee paid by a retailer to a credit card company is considered a contra-revenue account by the retailer.

Question

Quizplus · Accepted Answer

The fee paid by a retailer to a credit card company is considered an expense, typically categorized under "credit card fees" or "merchant fees," not a contra-revenue account. Contra-revenue accounts reduce a company's gross revenue to arrive at net revenue and include items like sales returns and allowances, not credit card fees.

The Fee Paid by a Retailer to a Credit Card