Every time a customer pays on your WooCommerce store, money flows through a system involving at least four parties and each takes a piece. Understanding this flow demystifies why processing fees are structured the way they are, which parts are negotiable, and what actually determines where your revenue ends up.
The Five Parties in Every Card Transaction
1. The Cardholder
Your customer, paying with a card issued by their bank. They’re the starting point of the money flow.
2. The Issuing Bank
The bank that issued your customer’s card (Chase, Bank of America, Citibank, etc.). The issuer approves or declines transactions and is the first major fee recipient, they collect interchange on every transaction, which is why rewards card programs are funded by merchant fees.
3. The Card Network
Visa or Mastercard (also Amex, Discover). The network sets the rules for the system, connects issuers to acquirers, and charges network assessment fees on every transaction (typically 0.13%–0.15%). Card networks don’t actually hold or move money, they operate the communication rails that connect issuers and acquirers.
4. The Acquiring Bank (Acquirer)
The financial institution that holds your merchant account and connects your business to the card network. The acquirer is financially liable for your transactions and charges a processing markup to cover that risk and generate profit.
5. The Payment Processor / PayFac
The technology company that provides your gateway, fraud detection, reporting, and merchant-facing services. In modern payment stacks, the processor and acquirer functions are often combined (Adyen is both processor and direct acquirer; ConvesioPay provides access to this combined infrastructure).
Where the Money Goes: An Example
For a $100 transaction on a standard consumer Visa credit card:
| Party | Fee | Amount |
|---|---|---|
| Issuing bank (interchange) | ~1.80% + $0.10 | ~$1.90 |
| Card network (assessment) | ~0.13% | ~$0.13 |
| Acquirer + processor markup | ~0.97% + $0.20 | ~$1.17 |
| Total fees | ~2.9% + $0.30 | ~$3.20 |
| You receive | ~$96.80 |
On flat-rate pricing, your processor bundles all three layers into the headline rate (2.9% + $0.30). On interchange-plus pricing, the layers appear separately on your statement.
What’s Negotiable and What Isn’t
Interchange and network fees are set by Visa and Mastercard, not negotiable regardless of your processor. The processor markup (the third layer) is what your processor controls and what varies between providers. On flat-rate pricing, the markup is embedded. On interchange-plus, it’s visible as a separate percentage plus per-transaction charge.
How ConvesioPay Fits
ConvesioPay provides access to Adyen’s acquiring infrastructure, meaning the acquirer and processor functions are handled by Adyen’s institutional-grade network, with ConvesioPay as your merchant-facing relationship. The result: enterprise-quality acquiring and processing at a flat retail-accessible rate of 2.9% + $0.30 per transaction, no monthly fees.
Ready to get started? Learn more about ConvesioPay or view pricing.