Intra-Parties POS Fees - PayFair - The European Card Payment Solution!

Intra-Parties POS Fees

PayFair is an “interchange free” scheme. A number of schemes promote the use of the interchange concept, leading to an un-transparent pricing mechanism for both banks and merchants.

Instead, PayFair has opted for a very transparent and cost based mechanism which remunerate each service in an explicit and transparent way. This mechanism is implemented through the so called “intra-parties POS fee”. These fees are directly applicable between the merchant (a party accepting PayFair cards in its shop) and the issuer (a member of the Payfair scheme having issued cards to cardholder and authorising the payment transactions).

There are two Intra-parties POS fees in the PayFair scheme:

A Payment Authorisation fee, to remunerate the payment authorisation provided by the issuer to the merchant
A Card Incentive fee: to remunerate (temporarily) the issuer for having equipped the cardholder with an electronic payment device (i.e. a card)

The level of these fees is defined by the PayFair intra-parties POS model which is discussed by and implemented through the PayFair Intra-Parties POS fees Forum (see Governance and Rules and Regulation).