Point of Sale (POS) Glossary
Transaction fees are the charges that a business must pay for processing a customer’s electronic payment. When a buyer uses a credit or debit card at a point of sale terminal, a payment processor may charge a transaction percentage plus an additional fixed amount. These fees are not limited to POS terminals and must also be paid for online, phone, and mail purchases.
A per-transaction fee covers an acquirer and processor fees and generally are a few percentages of the purchase plus a set amount. Additional fees may apply, for instance, if a transaction is international and may also apply even if a transaction is rejected and does not go through. For this reason, plus concerns about fraud, merchants may offer a discount for cash.
An eCommerce website is open 24/7 and accessible from all over the world. Being online and having physical store opens your business to a global market.
You’ve probably been at the register at the grocery store and asked if you wanted to contribute money to a charity as you checked out. Maybe you donated, or perhaps you found it was annoying. It might have depended on your mood that day, or possibly the charity was a deciding factor.