Fees are assessed on each transaction processed through a Cornell University merchant ID (MID) or a PayPal account.
Fees for a CardConnect MID
The average overall cost to a Cornell merchant (inclusive of all fees listed below) is approximately 2.64%. Due to the flat monthly fees, this percentage will be lower for high-volume merchants and higher for low-volume merchants.
The fees include:
- A $19.99 monthly Cardpointe platform fee.
- A $3.50 monthly regulatory product fee.
- Interchange fees + 0.2% per transaction.
- A $0.10 authorization charge per transaction.
Interchange fee information
- The major payment card brands (MasterCard, Visa, Discover, American Express) assess interchange fees on the acquirer (the financial institution that maintains a merchant’s account). The acquirer passes these feds on to the merchant (Cornell departments, in this case).
- These fees are based on the type of card that was used for the purchase. Elite travel rewards cards, for example, will be more expensive than credit cards without rewards programs.
- Interchange fees will vary. The average interchange rate charged to Cornell merchants is approximately 2.32%.
How CardConnect fees are assessed
- Revenue will be posted on a gross basis. If a customer pays you $50 via credit card, you will receive $50.
- Fees will be accumulated throughout the month and debited early the following month.
- For example, fees for September transactions will be debited in early October.
Fees for PayPal accounts (only available in limited circumstances)
- Fees begin at 2.9% + $0.49 per transaction.
- If your account qualifies for the charitable organization rate, fees will be reduced to 1.9% + $0.49 per transaction. Setting up an organization for the charitable organization rate may take one to two months to complete.
How PayPal fees are collected
- Revenue will be posted on a net basis. If a customer pays you $50 via PayPal, you will receive $48.06 (assuming 2.9% + $0.49).
- Because fees are subtracted from revenue, it is expected that you will true-up revenue by crediting the fee amount to revenue and debiting the same amount to expense. This process will ensure that fee expenses are recognized in the university's financial reports.
