Virtual USD Card Authorisation Fees

Lara
Lara
  • Updated

For USD Cards, we charge the cardholder an authorization fee per transaction. As a business, you're entitled to a % split in revenue from this authorization fee.

 

What are interchange fees?

An interchange fee is a fee charged by banks to the merchant who processes a credit card or debit card payment. When an end-user/customer completes a transaction at any checkout or Point-of-sale, a small fee or revenue is earned.

 

How is the interchange revenue payout done?

All interchange fees for the month are sent as a single payout to the business's NGN issuing wallet. The exchange rate is calculated based on the funding rate at the time the transactions were processed. This means that if the funding rate for November 2022 was 700 to $1, then interchange revenue for November will be calculated based on that funding rate.

 

When are interchange fee revenues paid out?

All interchange payouts are paid monthly on the second day of the succeeding month. For example, Revenue for November 2022 will be paid on the 2nd of December 2022.

 

How is the Authorization fee calculated?

Transaction Value

Authorization fee

% Split

$1 - $80

$1

20%

$81 - $150

$2

20%

$151 - $500

$3

25%

$501 - $1000

$5

30%

Above 1000

$5

30%

 

Kindly note that authorization fees are taken from the cardholder's cards. Also, note that Authorisation and Interchange fees are used alternatively. Both terms mean the same thing.

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