Merchant Fees for Accepting Credit or Debit Cards

The Interchange Rate Fee is a monthly sum paid by merchants to the cardholder’s issuance bank and collected by the university’s merchant processor as a fee for accepting credit/ debit cards. The rate will vary depending on a series of elements: the card brand (MasterCard, Visa, American Express, or Discover), the type of credit/debit card (Rewards, Signature, Corporate, etc.), time between authorization and clearing, processing type (online, swipe terminal, phone order, etc.), a merchant's sales and transaction volume, plus additional criteria. Each transaction is evaluated separately; therefore, various interchange fee rates may apply.  

The Service/ Discount Fee is a monthly sum paid by merchants to the university’s merchant processor as a fee for providing services and accepting credit/ debit card payments. Rates will vary depending on a series of elements such as the criteria for the Interchange Rate Fee.  

The Equipment Fee applies to merchants who prefer to rent their swipe terminal(s). Currently, a monthly rental fee of $36 is assessed for terminal model FD130 and PIN PAD FD35. Prices may vary depending on the model and quantity. Refer to Equipment Resources for more details. 

The PCI DSS Certification/ Validation Fee is the cost associated with obtaining certification/ validation of compliance. This fee is determined when a merchant is enrolled in the University’s QSA/ASV tracking and attestation tool. Additional cost may apply to merchants who need additional assistance to comply with PCI DSS requirements. All related fees are charged to the merchant’s account.

Refer to the PCI DSS page for details related on compliance requirements.   

Effective July 1, 2024, the costs of doing business with merchants will be recharged to the merchants quarterly at a nominal rate of 0.32% on the net credit card sales activity settled.

This fee is being charged for the support services provided to ensure smooth merchant operations and overall compliance. These services primarily include support to merchants on queries/issues, banking services setups, chargebacks, device management, new vendors assessments, policy reviews, training adherence, users’ administration on third-party portals, processor bank and service providers correspondences, accounting and ledger support, annual PCI compliance reviews and certification for UCSD.

Starting Q1 FY25, each quarter a recharge fee will be assessed on the credit card transactions that have settled into the bank accounts. This fee will be recorded in the financial system towards the associated MID cost centers before the fiscal quarter close. The merchants will be able to review these costs through the BAH Analytics reporting dashboard.

Further inquiries can be submitted to the Cash and Merchant Services via support tickets.