CARD FEES 3.5% is a financial line item representing payment processing charges applied to card transactions, typically shown as a percentage of the transaction total. This entry documents fees associated with credit and debit card acceptance—helping businesses track processing costs and reconcile net revenues accurately.
Why it matters: card processing fees impact margins and should be tracked for accurate accounting. Displaying or accounting for fees enables transparent customer billing and supports informed pricing decisions.
What it includes: typical merchant processing percentage (in this case 3.5%), occasional fixed per‑transaction fees depending on the processor, and any related gateway or chargeback costs. Use this line to reflect negotiated rates and reconcile payments.
How it’s used: calculate 3.5% of the transaction subtotal and present as a separate charge on invoices if passing fees to customers, or track internally if absorbed. Ensure disclosure per card network rules and local regulations.
Who it’s for: retailers, service providers, and accounting teams who need to manage payment processing costs and maintain transparent billing.
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