Once a unit/department begins to accept funds for the sale of products or services, they are considered a "merchant." To accept credit cards as a method of payment, you must operate under a merchant account. Credit card issuers provide each merchant account with merchant numbers, also known as Merchant ID’s (MID), which uniquely identify its credit card transactions.

All merchant accounts, payment application systems, payment gateways and credit card equipment must be established for use through the E-commerce Committee prior to purchase. More detailed discussion of fees is considered when a department meets with the E-commerce Committee to discuss direction, business processes and viable e-commerce setup for the department.

There are two ways to operate as a merchant to receive credit card payments:

  1. Accepting online payments
  2. Accepting payments in-person at point of sale (e.g., credit card terminal)

Credit Card Processing Fees


Credit Card Processing Fees
Fee DescriptionCost
Merchant Services: Set-up fee$99.00
Merchant Services: Interchange & Merchant Services Fee1.5% - 2.5% of transaction
Payment Application: Touchnet Partner Implementation Fee$1,250.00
Payment Application: Interchange & Merchant Services Fee1.5% - 2.5% of transaction
Payment Gateway FeesVaries*
Credit Card Terminal and Equipment FeesVaries*

*Note: Fees vary depending on the application and the gateway used.

Fees Detail

Merchant Services is our vendor that establishes the merchant account to accept payments for Mastercard, Visa, Discover Card and American Express credit cards. A Merchant ID (MID) is assigned to each card brand. Merchant Services also acts as a processor for each transaction, communicating with the credit card brands to gain authorization, capturing data for each transaction, and communicating with the acquiring bank to help settle transactions and disputes.


Merchant Services fees are billed monthly and automatically withdrawn from the University’s bank account. KU Student Accounts & Receivables will charge back these fees to each department according to the statement.

Fees associated with becoming a merchant to accept credit card payments: 

  • Setup Fee — $99.00 (one time only for each new Merchant ID)
  • Interchange & Merchant Services Fee — Range from 1.5% - 2.5% based on the type of card presented as payment. Each credit card issued to the consumer is backed by a financial/banking institution and has specified features and promotions. 

Payment Application Fees
Payment application fees are various fees that a supplier may charge to use their online application to accept payments. This amount could be included in the overall contracted services annual amount or billed on an incremental basis by month. This amount may also include a nominal amount per batch and per transaction.

TouchNet Information Systems has a TouchNet Ready Partners program that includes numerous suppliers offering an array of functionality software applications compatible to process online through TouchNet UCommerce Marketplace.

  • Touchnet Partner Implementation Fee —​$1,250.00
  • TouchNet Partner Annual Maintenance Fee —$1,500.00

Gateway fees are the costs charged by companies for access to the networks that handle the financial data processing of credit card purchases. This may include setup, monthly maintenance and transaction fees. The selected gateway must be compatible with the payment application to communicate and execute transactions with Merchant Services.

Select credit card terminals and pin pads may be purchased through KU’s designated contracted service providers based on stand-alone operation or connectivity with other payment systems. All equipment is EMV certified by the Payment Card Industry Security Standards Council.


First Data FD130 (only)


First Data FD130 Duo (with pin pad)


First Data FD35 Pin Pad (only)


First Data FD410 Remote Cellular Terminal