Fee Structure of Online Payment Gateways

Credit Card Processing Companies or Online Payments Gateways can solve a lot of your problems as a business owner in today’s digitalized world. May you be an E-Commerce website, a physical store, a large company or a home based business, you can benefit from online payment gateways. They are securing internet transactions all over the world and smoothen the cash flow for businesses in the fastest, most efficient way. The merchant accounts and personalized solutions offered by these online payment gateways can be tailor-fitted to secure your business objective and financial transactions.

These gateways accept payments online from anywhere in the world and get them to you safely. Of course, the service comes with a fee. The only slight hitch that business face, when they are working with online payment integration service, is that there is on one black and white payment structure, rather it’s divided into smaller fees. If you do not do your research right, understanding these payments can be quite confusing, but in this article, we will try to simplify that down for you.

Remember the most important thing is that as a merchant you are well within your rights to cancel the service at any time.

Application & Setup Charges

This fee is sometimes charged for applying for the integration service & setting up all the initial details might come at a price. Depending on the payment processing company, these prices may vary.

Monthly Statement Fees

This fee covers the expenses of mailing monthly statements, as implied in the name. 

Interchange Fees

This fee is charged for any and all payment transactions and is paid by the payment processor to the credit/ debit card issuing bank. The rate of the fee is determined by the type of the card being used, the mode of transaction (online, by phone or in a store), and the magnitude of the transaction in question. In-store transactions, because of the owner’s & cards’ actual presence is less risky and therefore comes cheaper.

Monthly Minimum Fee

This amount is one that online payment gateway firm is bound to collect each month. If this minimum amount isn’t collected the company will charge you the remaining sum.

Monthly Gateway Access Fee

This sum is charged by some online processing firms to grant you access to their services (transmitting transaction information from your database to the card issuing bank).

Early Termination Fees

Some processing companies have a specified duration that you need to complete even if you want to discontinue the service. In case of early termination, you get charged a percentage.

Yes, we understand that all these fees might sound overwhelming, but the fancy fee terms shouldn’t keep you from safeguarding your business against the excessive finical security threats, common in the cyber world. Once you understand how everything works, you will see that investing in an online payment integration service will work in your favor. We have tried to cover the basic details, but you should go over these charges with the expert of your chosen payment processor firm before getting their service.