POS fees, also known as Point of Sale fees, are charges that are applied to transactions made using a debit or credit card at a point of sale terminal. These fees are typically charged to the merchant accepting the card payment and are intended to cover the costs associated with processing the transaction through the payment network.
When a customer makes a purchase using a debit or credit card at a POS terminal, the merchant's payment processor charges a fee for processing the transaction. This fee is usually a small percentage of the transaction amount plus a fixed amount per transaction. The exact fee amount can vary depending on factors such as the type of card used, the total transaction amount, and the specific terms of the merchant's agreement with their payment processor.
Overall, POS fees work by transferring a portion of the cost of processing card transactions from the cardholder to the merchant. It's important for merchants to understand these fees and factor them into their pricing and overall business costs.
