Credit card transaction fees are charges merchants pay to process credit and debit transactions. These fees are typically a percentage of the total transaction amount plus a fixed fee per transaction. Visa and Mastercard, two of the largest payment networks in the world, play a significant role in setting these fees.nnVisa and Mastercard do not directly charge merchants transaction fees. Instead, they set interchange fees, which are fees paid by the merchant's bank to the cardholder's bank for processing the transaction. These interchange fees are then passed on to the merchant as part of their overall transaction costs.nnThe interchange fees set by Visa and Mastercard can vary depending on factors such as the type of card used, the size of the merchant, transaction volume, and the industry in which the merchant operates. These fees are typically non-negotiable for merchants and can significantly impact their bottom line.nnOverall, Visa and Mastercard play a crucial role in determining merchants' transaction fees. Understanding how these fees are set and how they impact business operations is essential for merchants looking to optimize their payment processing costs.