Merchant Question
How Much Does Payment Processing Cost?
Understand percentage fees, fixed fees, card economics, cross-border costs and the effective rate.
There is no universal rate
Payment cost varies by market, payment method, transaction type, provider, commercial plan, card mix and other factors.
Model the whole cost
Include percentage charges, fixed transaction fees, network-related costs where passed through, gateway or platform fees, cross-border charges, FX, refunds and dispute costs.
Use an effective rate
Divide total payment-related cost by processed volume for the period. This gives management a broader measure than a headline transaction percentage.