What are Payment Gateway Charges? A Complete Model

Looking for a payment gateway that suits your fund? Wondering how each one differs in terms of payment gateway charges? While it might look that the payment gateway charges aren't really important, or the difference among various payment gateways isn't important, it stands out when looked through the lens of a bigger business establishment. In their case, a small change in the payment fees can significantly impact their profits.

Above all, it's the charges, including Merchant Discount Rate (MDR) and other associated payment fees, that come crucial in the decision to go for a specific payment gateway. Read on to know further about payment gateway charges and how to choose the right payment gateway grounded on the online payment charges applied. MDR is the charge by a payment service provider for an online payment made via different online payment styles. While this quantum is generally paid by the merchants, in many cases, the payment gateway asks for a fresh quantum from the client to cover the MDR. 

Understanding Payment Gateway Charges

Payment gateway charges are the cost earned by a business to aid online payment via the selected payment gateway on the website or app. The payment gateway charges are determined as a chance of an online payment quantum and depend upon the type of online payment methods used by the client.

A payment processing gateways give you much further flexibility and reach than the traditional modes of payment PoS (point of sale). It enables your business to more manage all payments with options for moment refunds, real-time bank agreements as well as effective operations.

Key Factors Impacting The Online Payment Charges 

Some of the key factors that blow online payment charges include:

Interchange rates – Interchange rates are charges for credit card payments incurred by issuing companies such as VISA or MasterCard on every online payment you make from your bank. This rate covers the online payment handling costs incurred by the bank and investments done to cut fraudulent transactions. With the rise in the number of online payments done by credit cards in India, it is more important to be aware of the interchange rates and how they are calculated based on the type of card and selected mode of payment.

Merchant fees – Merchant fees are charged if you want to accept credit card payments on your website or app. It is the payment fees charged for interlinking the credit card network with your merchant account. The merchant account grants you to accept online payments done via credit card. In disparity, the merchant account provider deposits the amounts received through credit card payment on your website or app into your account at regular intervals.

Payment safety – Payment Safety charges are applied depending upon the level of safety required over each payment and its mode. For example, payment done physically via a credit card at a store attracts lesser hassle compared to payment by credit card online. Therefore, payment gateway charges are directly reliant on the safety aspect of a transaction and its mode.

Various Components of Payment Gateway Charges

Payment gateway charges or fees contain various components required for active online payment processing. These include – 

• Payment gateway setup charges
• Annual maintenance charges
• Integration charges
• Merchant Discount Rate (MDR)
• Know The Payment Gateway Charges

It is quite important to know about all the payment gateway charges involved before you seal a provider, as it has a direct impact on your business gains. Some of the important parameters to keep in mind include;

• Type of transactions aimed or expected on your website or app
• The density of various transactions
• Revenue generated or expected to be generated by the business

Keeping these parameters in mind, you should look at other forms involved in the online payment gateway, such as the number of payment methods supported, payment safety, success rate, and other additional features provided. Remember, one should not make a decision only based on the charges by a payment processing gateways but look at the entire scenery of things offered to take the final call. 

“Try LetsPe Payment Gateway to Grow more. Do more. Be more.”

Some Features of The LetsPe Payment Gateway Are:

• Easy Integration with APIs, feather-light SDKs, plugins, and play partnerships.
• Industry best success rates through strategic partnerships.
• Offers 100+ payment modes across Credit Cards, Debit Cards, Net Banking, EMIs, and UPI.
• Simple and transparent pricing that suits your business.
• 24*7 customer support at each step.
• Instant Refunds are done within 5 minutes of the refund request.

Conclusion

If you’re looking for a payment gateway and worried about their payment processing fees and other additional charges. This information helps you while selecting a perfect payment gateway for your business.