Whether you're setting up your payment stack or reviewing existing contracts, gateway fees can add up fast. What seems like a small percentage per transaction often comes with extra charges—some expected, others not so obvious. This guide breaks down what those costs really mean, shows how your setup compares to industry standards, and shares realistic ways to cut down on fees.
Types of payment gateway fees
Transaction fees
This is the core cost of using a payment gateway. Most providers charge either a flat rate (for example, 2.9% plus a small fixed amount per sale) or a variable rate that changes depending on factors like payment method, transaction volume, or region. Whether the customer pays with a card or a digital wallet, each payment comes with its own cut taken by the gateway.
Setup fees
Some gateways bill a one-time fee when you start, covering things like onboarding, integration support, and access to testing environments. Large businesses or those with custom needs might face higher setup costs, often tied to tailored solutions.
Monthly or annual fees
In addition to per-transaction costs, many gateways have a regular subscription fee for platform access, support, and extra tools. Businesses with higher payment volumes sometimes benefit from this model if it comes with lower per-transaction rates.
Chargeback fees
If a customer disputes a charge and files a chargeback, the gateway will likely charge a handling fee. The amount varies by provider and is meant to cover the admin work of managing the dispute.
Currency conversion and cross-border fees
Accepting payments from abroad often means extra charges. Gateways may add a markup to currency conversion or tack on an international card fee. The exchange rate they use can also include a margin, making foreign transactions pricier than domestic ones.
PCI compliance fees
Some providers charge ongoing fees for keeping your account compliant with PCI DSS security standards. These costs help ensure payment data is processed and stored securely.
Early termination fees
If you end your contract before the agreed term, you might face a penalty. The details depend on your agreement, so it’s worth checking the fine print before signing.
Common payment gateway pricing models
Flat-rate pricing
This model charges a fixed percentage and fee per transaction regardless of payment method. It’s predictable, but may not reflect your real cost for different payment methods.
Interchange-plus pricing (IC+)
Often used by larger businesses, this model separates the card network’s interchange fees from the gateway’s markup. It offers transparency, especially for those looking to understand processing fees in detail.
Tiered pricing structures
Here, transactions are categorised into tiers (qualified, mid-qualified, non-qualified), each with a different rate. While it may seem straightforward, tier definitions are often opaque, which can complicate fee audits.
Subscription-based models
These charge a flat monthly fee alongside low per-transaction charges. For businesses with high transaction volume, this model can reduce the average cost per sale.
What factors influence payment gateway charges?
Your transaction volume and average order value
Gateways often adjust pricing based on how much you process each month. A higher volume can sometimes justify lower fees.
Type of business and risk profile
Businesses deemed higher risk—such as travel or online gaming—may face elevated gateway charges. Riskier profiles can trigger higher chargeback rates, which affect overall pricing.
Accepted payment methods
The payment method you offer—whether bank transfers, e-wallets, or cards—affects transaction costs. Supporting different payment methods allows for broader reach but adds complexity to cost management.
Geographical mix of transactions
If your business accepts international transactions, expect additional fees. Domestic transactions are generally cheaper to process than cross-border ones due to international fees, exchange rate fluctuations, and currency conversion costs.
Comparing payment gateway charges
|
Fee type |
Typical range |
When it applies |
What to watch for |
|
Setup fee |
USD 0 – 250 |
One-time during onboarding |
Often waived for online businesses |
|
Transaction fee |
1.5% – 3.5% + USD 0.10 – 0.30 |
Per transaction |
High-volume discounts; varies by payment method |
|
Monthly fee |
USD 0 – 100 |
Monthly access to platform/tools |
Charged even if no transactions are processed |
|
Chargeback fee |
USD 15 – 100 |
Per disputed transaction |
Can add up if fraud rate is high |
|
Currency conversion |
1% – 3% markup on exchange rate |
Cross-border or multi-currency transactions |
Hidden margins in exchange rates |
|
International card surcharge |
0.5% – 2% |
Non-domestic card usage |
Check for surcharges on wallets vs. cards |
|
PCI compliance fee |
USD 15 – 25 monthly |
Data security and fraud protection |
Sometimes bundled, sometimes separate |
|
Early termination fee |
USD 100 – 500+ |
Ending contract early |
Often overlooked in contract reviews |
How to evaluate total cost of ownership
Focus not just on the gateway fee per transaction, but on all ongoing fees: setup, monthly fee, chargeback fee, currency conversion costs, and PCI compliance. Consider how these costs scale with your transaction volume.
Avoiding hidden fees with transparent pricing
Look beyond marketing rates. A common payment gateway may promote low per-transaction rates but apply surcharges for international transactions or additional fees for specific card types.
Questions to ask providers during evaluation
- What is the monthly fee?
- How much are payment gateway fees in total, including chargebacks and currency conversion?
- Do you offer custom pricing?
- Will I need to pay a termination fee if I switch providers?
How to reduce payment gateway fees and maximise ROI
Negotiating rates based on volume and industry
Merchants with consistent or growing transaction volume may qualify for lower gateway charges. Sharing performance forecasts can help secure better rates.
Consolidating services to reduce redundancies
Using a single payment provider for multiple channels—like online checkout, subscription billing, and payment links—may reduce your monthly charges and simplify reconciliation.
Regular fee audits and reconciliation reviews
Track your transaction fees and conduct regular reviews. Spotting inconsistencies can lead to cost-saving adjustments and help catch pricing creep.
FAQs
How much is a gateway per transaction fee?
It varies. Most providers charge between 1.5% and 3.5% plus a fixed amount per transaction. The actual rate depends on your transaction volume, region, and payment method.
Which payment gateway has the lowest fees?
There’s no universal answer. The gateway with the lowest fees for you depends on your business model, payment mix, transaction size, and market. Comparing payment gateway charges is the best way to identify the most cost-effective option.
Are payment gateway charges tax-deductible?
In many jurisdictions, yes. Gateway fees and pricing can typically be classified as a business expense. Check with your financial advisor for specifics.
Why choose Antom to optimise your payment costs?
Transparent fee structure with no hidden costs
Antom’s pricing model is designed for clarity. You’ll always know what you’re paying for and why.
Local acquiring and FX optimisation to lower cross-border charges
With local connections in major markets, Antom reduces international card and conversion fees by processing locally.
Seamless PCI compliance support and built-in risk management
Antom offers integrated tools to maintain compliance and reduce chargeback risk, helping you protect card information and lower costs.
Custom pricing models for enterprises and SMEs
Whether you run an online business or a multi-market operation, Antom can build a pricing model to fit your transaction profile.
Ready to reduce your payment costs? Speak to our team for a free fee audit and see how Antom compares.
