IN ALL INSTANCES, THE PROCESSING FEES ARE PART OF THE SALES PRICE AND ARE TAXABLE. Sections 212.05 and 212.02, Florida Statutes (F.S.) Rule 12A-1.045, Florida Administrative Code (F.A.C.)
What is the process of processing a credit card transaction?
- Processor submits the transaction to the card network or card interchange system (a network of financial entities that communicate to manage the processing, clearing, and settlement of credit/debit card transactions). 4. The Credit Card Interchange routes the transaction to the customer’s Credit Card Issuer.
What percentage of a transaction is processing cost?
- For most merchants, it represents 70 to 85 percent of the total cost of processing. Interchange is the price charged by the card networks (Visa, MasterCard, Discover, American Express) for settling a transaction. All the interchange that a merchant pays goes to the bank that issued the card.
What are the costs of accepting card payments?
- • Interchange, dues/assessments and acquirer fees together comprise most of the all-in costs of accepting card payments. • Interchange and assessments/dues cannot be negotiated but can be optimized to qualify for the best rate.
How do I register to collect sales tax in Florida?
- You can register to collect, report and pay sales tax and discretionary sales surtax online at floridarevenue.com/taxes/registration (you must register each of your Florida business locations).