Also called: MC
What Mastercard is
Mastercard is a card network. When a customer pays your business with a Mastercard, the network carries payment messages between your payment processor and the bank that issued the card. The issuer approves or declines the transaction, and the network supports the exchange of transaction information and funds among the parties.
Mastercard does not set your entire processing bill. Your card costs have three layers: interchange paid to the issuing bank, network fees paid to the card network, and your processor’s markup. Mastercard sets network rules and fees, while your processor bills you for accepting payments.
Mastercard sets network fees, but your processor’s markup is the part of your bill you can negotiate.
What Mastercard costs your business
As of 2026, Mastercard charges an assessment of 0.14% on sales, plus an additional 0.01% on transactions of $1,000 or more. It also charges a Network Access and Brand Usage (NABU) fee of $0.0195 per authorization. These network fees are separate from interchange and processor markup, so the assessment is not your total cost for a Mastercard sale.
For example, on an illustrative $1,200 sale, the assessment is $1.80, and the additional 0.01% adds $0.12. The NABU fee applies per authorization, not per dollar of sale. The final processing cost also includes interchange and your processor’s charges.
Mastercard fees on an illustrative $1,200 sale
| Assessment at 0.14% | $1.80 |
|---|---|
| Additional 0.01% for transactions of $1,000 or more | $0.12 |
| NABU per authorization | $0.0195 |
Rates are as of 2026. This example excludes interchange and processor markup.
Where Mastercard fees appear on your statement
If your processor itemizes network fees, look for entries labeled Mastercard assessment, NABU, Network Access and Brand Usage, or similar wording. The exact descriptor depends on your processor. If the statement combines network fees into a broader line, compare the billed total with your transaction volume and authorization count.
A statement that lists only a blended rate hides the separate network fees, interchange, and processor markup. That makes it harder to identify which part of your bill is negotiable. The network’s published fees are not your processor’s markup.
What you can actually change
You cannot negotiate Mastercard’s published network fees. You can review how your processor bills them and negotiate the processor markup. Interchange is set by card type and transaction details, but accurate transaction data can affect the category applied to a sale.
When comparing statements or pricing offers, separate interchange, Mastercard network fees, and processor markup. A lower quoted processing rate is not a real saving if it obscures extra monthly charges or a higher markup.
- Separate the fee layers. Find interchange, Mastercard network fees, and processor markup on your statement. If your statement bundles them, request an itemized breakdown for the billing period.
- Check the authorization count. Compare the number of Mastercard authorizations with any NABU charges. The fee is per authorization, so duplicate or unnecessary authorizations can add cost.
- Negotiate the markup. Use the processor’s markup and recurring charges as your negotiation targets. Mastercard’s published network fees are not the negotiable part of your bill.
Frequently asked questions
Does Mastercard set the rate my business pays?
Mastercard sets network fees and rules, but your total card cost also includes interchange paid to the issuing bank and your processor’s markup. The processor markup is the part you can negotiate.
What is Mastercard’s NABU fee?
NABU means Network Access and Brand Usage. As of 2026, Mastercard charges $0.0195 per authorization. It is separate from the assessment, interchange, and processor markup.
What Mastercard fees should I look for on my statement?
Look for entries labeled Mastercard assessment, NABU, Network Access and Brand Usage, or similar wording. Processors use different descriptors, and some statements bundle network fees instead of itemizing them.