CARD FEE is an accounting line used to capture payment processing costs associated with card transactions. Typically represented as either a fixed fee or a percentage of the transaction, this line item helps businesses account for merchant fees, pass through or absorb costs, and maintain transparent invoicing.
Why it matters: card processing fees affect net margins and should be tracked for accurate financial reporting. Including a dedicated card fee line item clarifies customer invoices when fees are passed through, and supports reconciliation between gross sales and bank deposits.
How it’s used: calculate the fee based on the merchant agreement (percentage and/or fixed amount) and display it as a separate line on invoices when applicable. Alternatively, businesses may absorb the fee into pricing; policies should be clearly communicated to customers to avoid disputes.
Who it’s for: retailers, service providers, online stores, and finance teams that need clear tracking of payment processing costs. Displaying a card fee can improve invoicing transparency and support accurate accounting.
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