In business transactions, one has to be aware of the various fees one is required to pay for processing. Among these fees is the merchant service charge. It forms a very prominent part of the cost structure of electronic payment acceptance, mainly credit and debit card transactions. This paper will talk about a merchant service charge, its mode of operation, and the effects it has on businesses. Definition of Merchant Service Charge A merchant service charge is an amount a business pays to the MSP for processing electronic payments. The costs of handling card transactions and the infrastructural setup for setting out safe and efficient processing are represented by the…