Who collects a scheme fee?

• A. Fees paid to merchants.
• B. Fees collected by the card network.
• C. Fees charged by the processor.
• D. Fees paid to customers.

Answer: (B)

Scheme fees are charges levied by the card networks themselves ( Visa, Mastercard, etc.) to cover the cost of operating and securing the payment network. These networks set and collect these fees on each transaction, and merchants pay them through their processor/acquirer as part of the total processing cost. That’s why the correct answer is that the card network collects scheme fees. Fees paid to merchants would mean merchants receive money, which isn’t what a scheme fee is; fees charged by the processor are their service charges, not the network’s scheme fee; and fees paid to customers don’t apply here.