What are dues and assessments typically based on?

Dues and assessments are typically calculated based on the transaction amount. This means that as the volume or value of transactions increases, the dues or assessments imposed by payment networks or associations correspondingly increase as well. This approach aligns with the revenue generation model of many payment systems, which often derive their fees from the total dollar value of the transactions processed.

For example, a payment processor might charge a percentage of each transaction, meaning that higher transaction amounts lead to greater fees. This methodology ensures that the fees reflect the business activity levels of the merchants, aligning costs with usage.

In contrast, transaction type, cardholder loyalty, and merchant location may influence fees in certain contexts but are not the primary basis for calculating dues and assessments in a straightforward manner, making transaction amount the most appropriate choice in this context.