Understanding Processing Fees in DecoNetwork's DecoPay: A Guide to Card Types and Rates

DecoNetwork provides a robust embedded payment processing system, DecoPay, offering a variety of payment options (including credit cards, bank transfers, fraud protection, and dispute tools). This article explains how credit card processing fees work in DecoPay, how “Premium” cards are identified, and what to expect when refunds or disputes (chargebacks) occur.

In this article

• Prerequisites
• Why this matters
• Types of credit cards and their impact on processing fees
• Premium card check logic (zero-value authorization)
• Understanding fees for refunded payments
• How disputes affect your payout and balance
• Where chargeback/dispute fees appear
• Options for minimizing costs
• Where to view your credit card transaction and chargeback fees
• Best-practice tips
• Troubleshooting
• FAQs
• Additional resources

Why this matters

• Understand your costs: processing fees vary by card type and region.
• Avoid surprises: disputes (chargebacks) can affect payouts immediately, while dispute fees may appear later on your monthly invoice.
• Make informed decisions: apply surcharges (where appropriate) and configure premium-check limits to manage fees.

Types of credit cards and their impact on processing fees

In DecoPay, rates for credit card transactions are differentiated between Standard and Premium cards:

• Standard Cards: domestic consumer cards intended for personal use (commonly Visa and Mastercard). These typically carry lower processing fees.
• Premium Cards: domestic commercial/corporate/business cards (for example, Visa Business), plus domestic American Express, Discover, and Diners Club cards. These generally incur higher processing fees due to card-network pricing and cardholder benefits/rewards.

Premium card check logic (zero-value authorization)

In certain circumstances, DecoPay performs a zero-value authorization check to determine whether a card is premium. This verifies the card without charging the cardholder.

• Regions and card types:
  • In the US, Australia, and Canada, auth checks are performed on Mastercard and Visa credit or prepaid cards.
  • In the UK and EU, auth checks may also be performed on debit cards.
• Specific card rules:
  • Amex, Diners Club, and Discover are always considered premium (no auth check required).
  • Debit and prepaid cards are not auth checked and are not considered premium.
• Remembering premium status: if a card has been used or checked before, DecoPay remembers its premium status using a fingerprint (a hashed identifier). No sensitive card details are stored.
• Limiting auth checks: the Fulfillment Center can set a transaction amount limit that must be exceeded before an auth check is performed.
  • Even if the limit is not reached, premium fees may still be charged to the FC; however, the customer will not be charged the premium rate.
  • If a card is already identified as premium (or is Amex/Diners/Discover), no auth check is required and the customer will be charged the premium rate regardless of the limit.

Understanding fees for refunded payments

When you refund a charge through DecoPay, you may be charged fees based on your fee schedule. Also, DecoPay’s original processing fees from the transaction may not be returned when you issue a refund.

In some regions and for some payment types, refunds may have additional fees.

How disputes affect your payout and balance

If a customer opens a chargeback or payment dispute on an order processed through DecoPay, the disputed amount and any related fees are handled according to standard card-network and payment gateway rules.

What happens to the disputed amount

• The disputed amount is deducted immediately from the DecoPay balance when the dispute is opened (before the outcome is known).
• The funds are held while the dispute is reviewed by the card network and the customer’s bank.

How this impacts payouts

Which payout is affected depends on timing:

• If the dispute is opened before a payout is finalized, the payout may be reduced.
• If the payout is already processed, the disputed amount may be deducted from a subsequent payout.

What happens after the dispute is resolved

• If you win the dispute: the disputed amount is returned to your DecoPay balance and will be included in a future payout.
• If you lose the dispute: the deducted amount remains permanently removed.

Where chargeback/dispute fees appear

It’s important to distinguish between the disputed funds (the transaction amount being held) and a chargeback/dispute fee (a separate fee that may apply).

• The disputed transaction amount is withheld immediately when the dispute is opened.
• A chargeback/dispute fee may apply depending on the card network, dispute type, and region (it does not apply in every case).
• If a dispute fee applies, it appears on your monthly DecoNetwork subscription invoice under DecoPay fees (rather than as an immediate, real-time transaction).

Options for minimizing costs

Segmenting credit card transactions into Standard and Premium helps you understand the cost structure and make informed decisions. This can also encourage the use of Standard cards, helping minimize processing costs.

For additional flexibility, DecoPay users can apply surcharges to credit card payments. You can configure a flat fee or percentage surcharge on domestic and international credit card transactions, allowing you to pass on some processing costs to customers. For instructions on configuring credit card surcharges, see Add Margins to DecoPay Credit Card Fees.

Where to view your credit card transaction and chargeback fees

1. Log into your DecoNetwork Website.
2. Browse to Admin → Settings.

3. Select Payment Methods.

   

   

   The Payment Methods page will be displayed.

   

   Click the image to enlarge.

4. Click on the Configure DecoPay button.

   The DecoPay configuration page will be displayed.

   

   Click the image to enlarge.

5. Click on Credit Cards from the sub-menu.

   

   The configuration settings for credit cards will be displayed.

   

   Click the image to enlarge.

6. Click on the Pricing And Limits tab.

   

   The Pricing and Limits settings will be displayed.

   

   Click the image to enlarge.

   Check the DecoPay Pricing section at the top of the page to see the fees applicable to your region.

   

Best-practice tips

• Review fees by region: rates and applicable dispute fees can differ by country and card network.
• Use premium-check limits thoughtfully: adjust the auth-check threshold to reduce zero-value checks while understanding how premium fees are applied.
• Set expectations for disputes: if a dispute is opened, the transaction amount is withheld immediately and may affect the next payout depending on timing.
• Use surcharges carefully: if you enable surcharges, ensure they align with local regulations and your customer experience goals.

Troubleshooting

My payout is lower than expected

• Check whether any disputes were opened near the payout date (the disputed amount is withheld immediately).
• Review payouts and included transactions in DecoPay (if available in your configuration) to confirm which transactions were included.

I see a DecoPay fee on my monthly invoice that I didn’t expect

• Some fees (including applicable dispute/chargeback fees) can appear on your monthly DecoNetwork subscription invoice under DecoPay fees.
• Compare the invoice period to any recent disputes or authorization checks during that billing cycle.

FAQs

Why is money deducted before the dispute is resolved?

When a dispute is opened, card networks require the disputed amount to be held immediately while the case is reviewed. This is standard behavior for payment gateways (including Stripe-based processing).

Where will a chargeback/dispute fee show up?

If a dispute fee applies, it appears on your monthly DecoNetwork subscription invoice under DecoPay fees, rather than as an immediate transaction when the dispute is opened.

Do all disputes have a fee?

No. Whether a dispute fee applies depends on the card network, dispute type, and region.

Which payout will be affected by a dispute?

It depends on timing. If the dispute is opened before the payout is finalized, that payout may be reduced. If payout processing has already occurred, the deduction may appear on a subsequent payout.

Additional resources

• DecoPay FAQs
• Add Margins to DecoPay Credit Card Fees
• How to View Order Payments Included in a Payout in DecoNetwork
• Managing Disputes in DecoPay