Procesing Rates Decline

Payment processing rates have been declining steadily ever since eCommerce came into being a decade ago and today they represent one of the biggest cost-saving opportunities available to web-based merchants. Whereas two - three years ago an internet merchant would have been lucky to get a rate of 2.25% + $0.30 per transaction, today the same merchant will easily get a rate of 2.19% + $0.25 per transaction, or lower. Just last week I reviewed the latest processing statements of an eCommerce business that sells Oriental food ingredients. Their processing rate is 2.48% per transaction. This Pass-Through Comparison Table shows our estimate of what the difference would be if they processed at the rate of 2.15% + $0.25 per transaction. Our estimates show that the savings would be in the range $1,500 - $1,800 per year. They only sell around $40,000 worth of product per month so you can see the potential. The real name of the business was removed to protect their privacy.