Merchant Glossary: Authorization Fee
This is also called a transaction fee. This is the amount charged to a merchant account each time a communication happens between the software or point-of-sale terminal and the authorizing network. The communication can occur either over a dial up telephone line, leased line, or an Internet IP line. In all cases, each time the merchant communicates with the authorizing network, an authorization fee will be charged for each transaction. And this covers all transaction types – a normal sale transaction, a force post authorization transaction, or a refund.