Asb Bank Limited

ASB Bank Merchant Service Fees (MSFs)


Merchant service fees (MSFs) are the fees that merchants pay to accept card payments. ASB Bank, like all other banks, charges merchants an MSF for each card transaction they process.

MSFs are typically made up of two components: an interchange fee and a merchant service fee. The interchange fee is the fee that ASB Bank pays to the card issuer (e.g., Visa or Mastercard) for each card transaction.

The merchant service fee is the fee that ASB Bank charges the merchant to cover the costs of processing the transaction.

ASB Bank’s MSF rates vary depending on the type of card transaction, the merchant’s industry, and the merchant’s processing volume.

However, as a general guide, ASB Bank’s MSF rates for domestic Visa and Mastercard transactions range from 1.3% to 2.2%.


Why do merchants have to pay MSFs?

MSFs are necessary to cover the costs of processing card transactions. These costs include:

  • The interchange fees that banks pay to card issuers
  • The costs of fraud prevention and security measures
  • The costs of developing and maintaining payment processing systems

How can merchants reduce their MSFs?

There are a few things that merchants can do to reduce their MSFs:

  • Negotiate with their bank. Merchants may be able to negotiate a lower MSF rate with their bank, especially if they have a high processing volume.
  • Choose a payment processor with competitive MSF rates. There are a number of payment processors that offer competitive MSF rates. Merchants should compare rates from different processors before choosing one.
  • Encourage customers to use contactless payments. Contactless payments typically have lower MSF rates than traditional swiped or inserted payments.
  • Offer discounts for cash payments. Merchants may want to offer discounts to customers who pay with cash, as this will help to reduce their MSFs.


MSFs are a necessary cost of doing business for merchants who accept card payments. However, there are a few things that merchants can do to reduce their MSFs.

By negotiating with their bank, choosing a payment processor with competitive MSF rates, and encouraging customers to use contactless payments, merchants can save money on their MSFs.


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