Do you know what you pay for credit processing? Here’s a great breakdown of the real costs

2015-08-05 16:55:51 Payments
Payments
By Jeremy Milk, Head of Marketing | 2015-08-05 16:55:51
Estimated reading time 1 minute read
Jeremy Milk
By Jeremy Milk, Head of Marketing

One of the things you quickly realize in payments is that the sticker price is rarely the only price. This is because the stated rate doesn’t usually take into account the slew of extra fees that get tacked on by a merchant’s bank, their processing gateway, their merchant account provider and the card networks themselves.

The folks over at LemonStand have an excellent breakdown of everyone involved in a credit transaction, and the fees they charge. It’s not completely comprehensive, as actual rates depend on a number of factors including the industry a merchant is in, the amount of chargeback risk they run, and whether they’re processing internationally. However, it gives some great insight into how complicated payment pricing can be.

No matter whom you choose to process your payments, make sure you know the pricing before you do anything. (For the record, WePay standard pricing is a flat 2.9% plus $0.30 per transaction. That’s it. The vast majority of our platform partners pass this same simple structure on to users.)

About the author

Jeremy Milk

Jeremy Milk, Head of Marketing

Jeremy is WePay's head of marketing. Earlier, he held marketing and product leadership roles for Intuit QuickBooks, where he got hooked on fintech, and The Clorox Company. He's also a die-hard UNC basketball fan.

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