Every time a customer pays with a card, the seller loses more than it seems at first glance.

Payment processing fees are not just a fixed percentage that payment providers talk about. In 2025, the online and offline trading market is facing a new wave of hidden fees, complicated tariff plans, and unexpected contractual terms. Many entrepreneurs don’t even realize how high the true cost of each transaction is. What payment “traps” are lurking for sellers this year, and how to avoid unnecessary costs? We understand the details.

Payment processing costs

Accepting card payments is an integral part of modern business, but you have to pay for convenience. It includes several types of payment processing fees, which can significantly reduce the margin of the seller.

1. Interchain commission

This is the fee that the acquiring bank (the seller’s bank) transfers to the issuing bank (the buyer’s bank) for processing the transaction. Depending on the type of card and the region, it can range from 1% to 3% of the payment amount.

2. Online payment processing fees

Visa, Mastercard, American Express, and other payment networks charge additional fees for using their infrastructure. This is usually a small, fixed amount (for example, 0.1%-0.3% of the transaction).

3. Payment provider’s commission

Providers such as Stripe, PayPal, or Square take their part in ensuring secure data transfer and integration with the business. Their tariffs can range from a fixed rate (for example, 2.9% + 30 cents per transaction) to complex schemes with additional fees.

Hidden payments: meaning

Hidden payments are additional fees and charges that are not always obvious when signing a contract with a payment provider or bank. They can significantly increase the cost of payment processing, reducing the net profit of the seller.

1. Fees for processing refunds and chargebacks

If the customer disputes the transaction (chargeback) or returns the product, the seller can pay from $10 to $50 for each case, even if the dispute is resolved in his favor.

2. Additional fees for international transactions

Many providers charge increased fees for processing payments made from foreign bank cards. Such commissions can reach 1%-2% on top of the standard rates.

3. Payment for quick receipt of funds

By default, payments can be credited to the merchant’s account within 1–3 days, but if an instant transfer is required, an additional fee may be charged (for example, 1% of the amount).

4. Subscription fee for using the payment gateway

Some providers require a monthly subscription for access to their services, even if the seller has few transactions.

5. Minimum turnover fees

If a business does not reach a certain level of card turnover, the payment provider may charge an additional fee for “insufficient volume of transactions.”

6. Unexpected “technical” fees

Some companies include payments for “security support,” “anti-fraud systems,” or even “infrastructure costs” that were not originally stipulated in the contract.

Payment gateway processing fee

A payment gateway is a service that provides secure data transfer between the seller, the buyer’s bank and the payment system (Visa, Mastercard, etc.). The gateway charges a commission for its work, which can significantly affect the overall costs of the business.

How is the fee for the payment gateway calculated?

• Fixed transaction fee (many payment gateways charge a small fixed amount for each processed transaction)
• Percentage commission
• Subscription fee
• Additional fees

How can you eliminate merchant fees?

High fees for processing payments can significantly reduce business profits. However, there are several strategies that will help minimize transaction fee and avoid unnecessary expenses.

1. Comparing tariffs and choosing the optimal provider

Before you connect a payment service, you should compare the offers of different providers. It is important to consider not only the basic rates, but also possible hidden fees. What should you do?

• Study the tariff plans of several providers.
• Request detailed information about possible additional fees.
• Choose providers with a transparent pricing system.
• Check our payment reconciliation software

2. Optimizing the payment structure

Some types of cards and payment methods have lower fees. For example, debit cards are often cheaper to process than credit cards. What should you do?

• Encourage customers to use more profitable payment methods (for example, bank transfers or local payment systems).
• If a business is dealing with large amounts, consider issuing invoices instead of regular card payments.

3. Review of current contracts

Many sellers sign a contract with a payment provider and forget about it, even if more favorable conditions appear on the market. What should you do?

• Regularly analyze statements and check commission amounts.
• Negotiate with the current provider — sometimes they are ready to offer better terms.
• Consider changing the provider if the conditions are no longer favorable.

4. Chargeback prevention

Chargebacks (disputed transactions) can lead not only to a loss of revenue, but also to additional fines. What should you do?

• Clearly state the terms of return on the website.
• Use anti-fraud tools to identify suspicious transactions.
• Improve customer service to reduce the likelihood of refunds.

5. Using payment gateways with dynamic pricing

Some providers offer dynamic pricing, where the commission is reduced as the turnover increases. What should you do?

• Choose tariffs where the commission decreases as the transaction volume increases.
• Negotiate a reduction in commission while increasing turnover.

6. Automated analysis of payment expenses

Some companies use special services to monitor payment processing costs and identify unprofitable fees. What should you do?

• Enable payment analytics to track hidden fees.
• Automatically detect transactions with excessive fees.

Optimizing payment processing costs is a strategic task that requires regular analysis. Choosing the right provider, controlling fees and reducing risks will help businesses reduce unnecessary costs and increase profits.

Featured image credit: image via freepik