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