A voice authorization fee, though rare, is one of the many credit card processing fees you may come across. Voice authorization is a fraud detection measure used to ensure a cardholder has authorized a transaction that seems suspiciously large and out of the ordinary [1]Electronic Merchant Systems. “What is Voice Authorization?” Accessed January 27, 2025. . The issuing bank charges this fee when they contact a cardholder to verify a transaction. Benefits of voice authorization include:
- Detering unauthorized or fraudulent purchases
- Reducing the number of chargebacks a merchant may experience
- Ensuring that the customer’s credit or debit card is valid
- Protecting the merchant from fraudsters and other criminals who may attempt to use stolen or counterfeit cards.
The voice authorization fee is typically a flat fee per occurrence. However, it can also be a percentage of the transaction amount. For example, if the fee is 0.5% and the transaction amount is $100, the amount you’ll pay totals up to $0.50. Each attempt to seek the customer’s approval is a voice authorization – this can result in multiple authorization fees for one transaction. Voice authorization fees will vary across payment processors so it is best to speak to yours directly to know the exact amount.
To avoid any initial confusion about fees, consider a merchant service provider who is transparent and knowledgeable about rates.
