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Merchant processing fees are the costs charged by payment providers (Stripe, PayPal, Shopify Payments) to process customer payments.

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What Are Merchant Processing Fees?

These fees typically include:
  • Transaction fees: Percentage of transaction (e.g., 2.9%)
  • Fixed fees: Per-transaction fee (e.g., $0.30)
  • Gateway fees: Monthly/per-transaction gateway costs
  • Chargeback fees: Fees for disputed transactions
Processing fees vary by payment method. Credit cards typically cost more than ACH/bank transfers.

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Where Processing Fees Appear

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Common Fee Structures

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Setting Up Processing Fees

1

Calculate blended rate

Review payment provider statements to find your average rate across all payment methods
2

Open Configuration Sheet

Navigate to the merchant processing section
3

Enter percentage

Enter your blended rate (e.g., 2.7% for most DTC brands)
Use your blended rate across all payment types. Most brands see 2.5-3.0% when combining credit cards, PayPal, and alternative payments.

Set up processing fees

Step-by-step setup guide

Contribution margin

How processing fees affect contribution margin