Payment knowledge

What makes up payment fees?

Payment fees often contain several components: interchange, card-scheme fees, the PSP or acquirer markup, and possible fixed, currency, chargeback or add-on fees. A single percentage is therefore rarely enough to compare proposals economically.

A meaningful comparison applies every fee to the real transaction profile. Countries, card types, order values, currencies, refunds and declines affect effective cost, as do monthly and minimum fees.

Last reviewed: Published by Pay Strategy

Which costs belong in the model?

Transaction costs

Percentage and fixed components for successful or attempted payments.

Event-based costs

Fees for refunds, chargebacks, disputes, 3-D Secure or specific risk checks.

Operating and follow-on costs

Monthly fees, FX, payouts, reporting, integrations, manual effort and potential switching costs.

Headline price and the real question

Price componentMeaningQuestion to ask
Percentage feeShare of payment valueWhich countries and cards does it cover?
Fixed amountAmount per transactionDoes it also apply to refunds or declines?
FX markupCurrency-conversion costWhich reference rate and markup are used?
Chargeback feeDispute handlingIs it refundable and what additional cost applies?

How to build a reliable cost comparison

  1. 1. Build the transaction profile

    Segment revenue and count by country, currency, payment method, card type and order value.

  2. 2. Capture every price component

    Normalize variable, fixed, monthly and event-based fees in one model.

  3. 3. Calculate scenarios

    Model the current state, realistic growth and stress cases separately.

  4. 4. Add non-price factors

    Account for acceptance, outages, operating effort, reserves and integration cost.

Payment fees FAQ

What is Interchange++?

Interchange++ presents interchange, card-scheme fees and the provider markup separately. It creates transparency, while total cost varies with the transaction mix.

Why is the percentage fee not enough?

Fixed charges, card and country mix, monthly fees, FX, refunds and chargebacks can materially change the effective price.

Are the website calculator values binding?

No. The calculator explicitly uses simplified examples. A defensible proposal requires the real transaction and risk profile and the complete contractual terms.

Primary reference material

These primary sources provide context. A specific recommendation always depends on the business model and the rules and contracts in force.