American Express, Discover and Other Credit Card Transaction Fees

Frequently Asked Merchant Account Questions and Answers

4. What kind of fee does American Express and Discover charge?

There are absolutely no setup fees with American Express. You will usually fill out an application for Discover at the same time you fill out your application with Visa and MasterCard. American Express offers two different tiered pricing plans.

Discount Rate - If you choose this plan type you will pay American Express a small 3% fee and is based on your industry and average ticket size. Card Swipe and Card Keyed transactions are not differentiated by American Express like they are with Visa or MasterCard.

Flat Fee - This is where you pay a flat monthly fee of only $5.00 without any other charges and you do not pay an amount for each American Express sale. In order to qualify for this plan your business must make less then $5,000 in annual American Express sales and be able to authorize, submit and receive payments electronically.

Statement Fees – Fortunately there is no charge for a statement fee by American Express. There is a tiered pricing plan that is offered by Discover based on the three types of businesses which include internet or home based businesses, restaurants, and retail businesses. Listed below is a breakdown of the various discount rates based on the business type.

Restaurant Businesses

Average ticket $00 to $20, your rate is 2.18% + 8 cents
$21 to $30, your rate is 1.93% + 8 cents
$31 to $50, your rate is 1.73% + 8 cents
$51 to $70, your rate is 1.62% + 8 cents
$71 to $90, your rate is 1.57% + 8 cents
$91 to $120, your rate is 1.55% + 8 cents
$121 to $150, your rate is 1.51 % + 8 cents
$151 and above, your rate is 1.49% + 8 cents

Retail Businesses:

Average ticket $00 to $20, your rate is 2.52% + 8 cents
$21 to $30, your rate is 2.22% + 8 cents
$31 to $50, your rate is 1.99% + 8 cents
$51 to $70, your rate is 1.86% + 8 cents
$71 to $90, your rate is 1.80% + 8 cents
$91 to $120, your rate is 1.77% + 8 cents
$121 to $150, your rate is 1.73% + 8 cents
$151 and above, your rate is 1.69% + 8 cents

Internet & Mail Order; Out-of-Home Businesses

Average ticket $00 to $20, your rate is 2.97% + 8 cents
$21 to $30, your rate is 2.67% + 8 cents
$31 to $50, your rate is 2.44% + 8 cents
$51 to $70, your rate is 2.31 % + 8 cents
$71 to $90, your rate is 2.25% + 8 cents
$91 to $120, your rate is 2.22% + 8 cents
$121 to $150, your rate is 2.18% + 8 cents
$151 and above, your rate is 2.14% + 8 cents

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