Fees & Pricing

Learn how merchant-service costs are constructed and how to calculate an effective payment cost.

There is rarely one payment fee

A payment price can contain a percentage fee, a fixed transaction fee, network or scheme costs, acquiring or processing costs, gateway or platform charges, cross-border charges, currency conversion and other service fees. The exact structure depends on the provider, payment method, market and commercial plan.

Interchange and network economics

Card transactions can involve interchange paid between the acquirer and issuer and network or scheme fees. A provider may bundle, pass through or mark up parts of this cost.

Effective rate

The effective rate is a useful management metric: total payment-related cost divided by processed volume for the period. It can reveal costs that a headline percentage alone hides.

Compare like with like

• Separate domestic and cross-border volume.
• Separate cards, bank payments and wallets.
• Include refunds and dispute costs.
• Check currency conversion assumptions.
• Ask whether minimums, monthly fees or contract terms apply.