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Authorization Fee

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.

Other articles terms explained in the Merchant Glossary:

ABA Routing Number

ACH / Automated Clearing House

Acquiring Bank

ATM Debit Card

Authorization

Authorization Code

Authorization Fee

Authorization Only Transaction

Authorization Response

Average Ticket Size

AVS / Address Verification Service

Basis Points

Batch or Batch Processing

Business Type

Debit Card

BBB Accredited Business