Credit card transaction cost question.

Hi Reddit,

Let's say you are an online hotel/airline booking company.

If the consumer pays $100 for a hotel, and you take a 10% cut of that and give the rest to the hotel, what is the credit card transaction cost you have to pay?

If the CC transaction cost is 5%, do you as the booking company pay 5% on the $100 transaction? Or do you only pay 5% on your commission portion and then the hotel pays 5% on their portion of the $100? Or do you pay 5% on the $100 transaction, and then with the remaining $95, do you only pay $.50 towards the CC transaction cost because you only get 10% of the transaction, and then the hotel pays$4.50 on the CC cost because they take 90% of the transaction?

Help!!! Thanks.


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