Kortagjöld

Kortagjöld, often translated as card fees, refers to charges levied by financial institutions or payment processors for the use of credit or debit cards. These fees can manifest in several ways and are typically borne by either the consumer, the merchant, or both.

For consumers, common kortagjöld include annual fees for holding a credit card, which often provide access to rewards programs or other benefits. Transaction fees might also apply for certain types of transactions, such as foreign currency exchanges or cash advances. Some debit cards may also have monthly service fees or ATM withdrawal fees if used outside a specific network.

Merchants face a more substantial and varied set of kortagjöld. These are primarily transaction fees, often referred to as interchange fees, which are paid to the card-issuing bank. Merchants also pay fees to the payment processor for facilitating the transaction and to the card networks (like Visa or Mastercard) for their services. These merchant fees are a significant operating cost for businesses that accept card payments.

The rationale behind kortagjöld is to cover the costs associated with processing transactions, managing accounts, mitigating fraud, and providing the infrastructure for electronic payments. While consumers may directly pay some fees, the majority of card-related costs are ultimately factored into the prices of goods and services by merchants, meaning all consumers, even those paying with cash, may indirectly contribute to these charges. Regulations in various countries aim to control the level and transparency of these fees.