Payment Processing Fees Explained: What Businesses Actually Pay
Understand the different charges that can appear on a payment-processing statement.
Start with the full cost
Headline transaction rates are only one part of the picture. Depending on the arrangement, businesses may also encounter fixed fees, monthly charges, refund or dispute fees, currency conversion costs and other commercial terms.
Build a like-for-like comparison
Write down your typical monthly sales, average order value, refund rate, payment methods, countries and settlement needs. Then ask each provider for pricing and operational terms against the same assumptions. This makes it easier to see where an apparently simple headline rate does not tell the whole story.
- Percentage and fixed transaction charges
- Monthly or annual platform charges
- Refund and dispute costs
- Currency conversion or cross-border charges
- Settlement timing, reserves and account limits
- Payment methods, integrations and support
Questions worth asking
Ask what happens when a payment fails, a customer requests a refund, a dispute is raised or your sales volume changes. Also confirm how pricing is affected by card type, payment method, currency and customer location.