The fee that banks collect from retailers whenever customers use a credit or a debit card to pay for a purchase is known as the:
A) interchange fee.
B) chargeback fee.
C) processing fee.
D) installment fee.

Question

Quizplus · Accepted Answer

The fee that banks collect from retailers whenever customers use a credit or a debit card to pay for a purchase is known as the interchange fee. This fee represents a percentage of the transaction amount and covers the cost of processing the transaction, reimbursing the cardholder's bank, administering the payment network, and providing fraud protection. The interchange fee varies depending on the type of card used, the merchant category code, and the transaction amount.

The Fee That Banks Collect from Retailers Whenever Customers Use