The Merchant Service Fee is charged for certain kinds of transactions that are processed through your merchant facility.
The Merchant Service Fee
The Merchant Service Fee (MSF) is charged for Visa, Mastercard or UnionPay transactions that are processed through your merchant facility. The MSF is calculated as a percentage of the dollar value of the transaction.
EFTPOS transactions are free in New Zealand. That means there is no transaction fee when the cardholder inserts or swipes their EFTPOS or scheme card and chooses ‘Cheque’ or ‘Savings’ when making a payment.
Credit cards and contactless payments have different charges depending on a range of factors.
The components of the MSF
Your MSF will vary depending on many things, including what types of cards your customers use, how you process these cards and the size and volume of your transactions.
The MSF is made up of five cost components:
This is the largest and most variable component of MSF. This fee is paid to the bank that issued the customer’s card (the issuing bank).
The interchange fee is variable and is set by the card scheme. Many factors determine this fee, including the type of card, how you process these cards (contactless, insert or swipe), and the country the card was issued in.
This is the fee paid to the card scheme (Visa, Mastercard or UnionPay).
The scheme fee varies based on the card scheme, card type, country the card was issued in, and the transaction value.
Network transaction fee
This fee is paid to the network provider. It varies depending on the network, but is a fixed amount per transaction.
The float cost is a percentage-based fee that covers the interest cost that we incur to settle your funds to you, before we receive the funds from the issuing bank.
ANZ acquirer margin
This covers our operating costs, plus a margin.
Pricing options available
The fixed MSF is specific to your business and its setup. We provide separate pricing for contactless debit and credit transactions for all of our merchants. Depending on your merchant facility you may also have a separate rate for processing eCommerce, mail or telephone transactions.
Fixed rates are calculated based on your average transaction value, card mix and the way the transactions are processed (contactless, insert or swipe).
With Interchange Plus, your MSF is made up of two parts:
The actual interchange fee for the card type presented.
Plus a total margin to cover the four other cost components related to processing the transactions.
Based on your business’s individual needs, Interchange Plus is also able to be split by scheme and card type for each transaction (for both pricing and statements). This gives a much greater level of detail.
With the Matrix option, your MSF is a variable rate, based on the sales volume and average transaction value processed through your facility during that month.