Visa and Mastercard take payment for their part in facilitating credit or debit card transactions. Mastercard charges 0.095% of each transaction while visa charges 0.0925%. These assessments are not Visa and Mastercard’s only source of revenue, but they are a significant part.
According to Mastercards 2007 Annual Report in 2007 Mastercard collected 1.1B in assessments. Visa does not report how much of its revenue comes from assessments, but I estimate (based on extrapolating from Mastercard’s results) that Visa collected about 1.4B in assessments in 2007. In total, that’s about $2.5B in assessments in 2007.
Assessments make up the smallest portion of most businesses’ credit card processing bill, with the larger parts going to credit card processors and to the banks that issue credit card (via interchange).
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April 7th, 2009 Visa Acquirer Processing Fee says:
[...] fee is a $0.019 per transaction fee established by Visa in the spring of 2009.
April 7th, 2009 Interchange Rate Increase says:
[...] would probably violate antitrust laws) recently announced changes to their interchange rates and assessments. Those who read this blog regularly know that interchange rates are the revenue that goes to the [...]
April 7th, 2009 Network Access and Brand Usage Fee (NABU) says:
[...] is a $0.0185 per transaction fee established by Mastercard in the spring of 2009.
June 16th, 2009 Visa and Mastercard Assessments | fix my credit says:
[...] Visa and Mastercard Assessments Posted by root 56 minutes ago (http://transfs.com) Visa and mastercard take payment for their part in facilitating credit or debit card transactions these assessments are not visa and mastercard only source of revenue leave a comment comment name email not published website copyright 2009 transfs llc all Discuss | Bury | News | Visa and Mastercard Assessments [...]