Update: What Do Merchant Acquirers Pay to Third-Party Processors? To solve for the question of what these entities pay for third party processing services, The Strawhecker Group (TSG) recently completed the ninth edition of its Processing Pricing Benchmark Study. This study provides a credible benchmarking tool for comparing the primary costs of third-party processing services.
The Strawhecker Group recently surveyed the merchant acquiring industry to determine the prevailing line item pricing rates for the cost of third-party processing in the U.S. market. The study included merchant acquirers who use third-party providers for front-end authorization and back-end settlement services.
In total, information was gathered from 83 front-end authorization portfolios and 78 back-end settlement relationships. The chart that follows shows the distribution of data across the volume bands, along with the aggregate monthly transactions for each category.