What is typically included in the average processing fees for credit card transactions?

The average processing fees for credit card transactions typically incorporate merchant discount rates and authorization fees. Merchant discount rates are the percentage of the transaction amount that the credit card issuer or payment processor retains as their fee for processing the transaction. This fee covers various services, such as the cost of managing the transaction and the risk associated with credit issuance. Authorization fees are charged for the service of verifying the cardholder's account and available credit before a transaction is completed. Together, these components are essential to understanding how merchants are charged for handling credit card payments, making this option the most accurate representation of what is included in average processing fees.

In contrast, marketing and advertising costs, employee salary expenditures, and shipping and handling fees do not directly relate to the processing of credit card transactions. These costs are associated with business operations but are categorized separately from the fees charged specifically for processing credit card payments.