Payment Gateway Fees & Pricing Your Go-To Guide

Lyle is a writer specializing in credit cards, travel rewards programs, and banking. His work has also appeared on MSN Money, USA Today, and Yahoo! Finance. In addition to the costs above, merchants that accept in-person transactions also need equipment. The assessment fee is the payment network’s cut, and it’s a much smaller portion of each transaction. Or, better still, choose a payment facilitator such as Zettle as Zettle’s fees operate on a pay-as-you-go basis and you won’t be roped into a contract.

  • Customers can make in-store transactions by swiping their card, over-the-phone transactions, online transactions, etc., and they all carry different levels of risk.
  • They’ll usually respond saying their costs went up, but they should have told you.
  • Monthly account fees can be anywhere from £9.95 to £75 + VAT, but the average fee is typically around £25 per month.

Merchant account fees can eat into your profits and make it even more expensive to process credit/debit card transactions. Worst yet, fees often aren’t disclosed during the sales process and instead appear out of nowhere as an unexpected surprise on your monthly processing statement. This model is best suited for businesses with high sales (at least $10,000 per month). You’ll likely get the lowest credit card processing fees, and that helps justify your payment processor’s monthly fee. There is one key advantage PayPal and Square offer over some interchange plus competitors, which is that they don’t have monthly fees.

Scheduled Merchant Account Fees

A small monthly fee won’t contribute much to your overall processing costs, especially if the payment gateway provider charges low rates on each transaction. However, if your business processes low volumes, it’s often best to avoid payment gateway providers with monthly fees. These are usually based on the current interchange rate, but may also include markups on top of that.Finally, the money is deposited Merchant Account Fees And Payment Gateway Pricing into your business bank account, where you or your employees can access it. The costs for credit card processing will depend on the merchant services provider that you choose. You may have an interchange-plus scenario where the interchange and assessment fees are charged along with a flat monthly and per-transaction fee. The per-transaction fee can range from 0.18% plus $0.10 to $0.50% plus $0.10.

  • This model is a popular choice because it’s affordable for all types of businesses and it has a transparent fee structure.
  • Although it may seem like the card networks benefit the most by raising fees, it’s actually the banks.
  • Next, your payment processor will take its cut, unless you’ve chosen a processor that charges one flat rate to cover all the fees in the transaction.
  • Remember that interchange fees go to the bank that issues a credit card.

If you have an existing merchant account, you can update your gateway with the parameters provided from your merchant provider and be ready to transact within minutes. One estimate found that the 2022 swipe fee changes from Mastercard and Visa will increase merchant fees by $475 million despite fees being reduced in some categories. Rob writes mainly about the payments industry, but also brings to the table industry-specific knowledge of CRM software, business loans, fulfilment, and invoice finance. When not exasperating his editor with bad puns, he can be found relaxing in a sunny (socially-distanced) corner, with a beer and a battered copy of Dostoevsky.

What determines your interchange fees?

Additionally, it’s worth asking payment gateway providers about enterprise pricing options if your business is large enough to qualify. Enterprise pricing includes custom discounts for businesses processing large volumes, resulting in significant cost savings for a business. Although these pricing options are not typically advertised publicly, most companies do offer them. Scheduled merchant account fees are the recurring fees you pay to maintain your account. While most of these fees are charged on a monthly basis, you may also encounter annual or quarterly fees as well. While many of our top-rated providers disclose a complete fee schedule on their websites, many others do not.

Merchant Account Fees And Payment Gateway Pricing

That said, if you’re keen on knowing more about the fees your business might face when using one of these services, help yourself to our detailed guide below. Clicking any of the links above will allow you to compare quotes to find the right merchant account for your business. Offer your customers all their preferred payment methods with a single integration. Merchants can pass the cost on to the customer by charging a surcharge on every transaction that covers the cost of the fee. Make sure you’re being charged what the card association (Visa, Mastercard, etc.) actually charges.