Payment Service Provider Costs
Payment Service Providers can charge online sellers one or more of the following fees:
- set-up fees
- annual or monthly service fees
- processing fees
- transaction commission fees
- exception handling fees
- reporting fees
- fraud prevention fees
Set-up fees relate to the costs charged to merchants for their set-up on the Payment Service Provider payment platform and integration support provided by the Payment Service Provider.
Annual or monthly service fees
Annual or monthly Service fees relate to the costs charged to merchants for using the payment services (platform, customer services, back-office) of the Payment Service Provider.
Almost every Payment Service Provider charges costs per processed transaction. These processing cost do only relate to the processing of data originating from the merchant's website to the applicable financial institution or acquirer. Most often they charge a fixed fee per processed transaction between 0.10 and 1.00 euro. Depending on the Payment Service Provider they could charge for – for example – approved transactions, declined transactions, authorization or transaction reversals, refunds and recurring payment (tokenisation) fees.
Transaction commission fees
Besides the processing costs, a Payment Service Provider could also charge a "Transaction Commission Fee" for every approved transaction or refund. Whether or not the Payment Service Provider charges commission costs per transaction depends on the fact if they act as an aggregating Payment Service Provider. In case the PSP is the contractual partner for settling one or more online payment methods to the merchant, they will charge a transaction commission. Transaction commissions can be either a fixed fee, a percentage of the transaction or a combination of both.
Exception handling fees
Some Payment Service Providers provide additional payment services such as chargeback handling or dispute management. They are facilitating the merchant in fighting chargebacks and by gathering required information to fight chargebacks. Most Payment Service Providers who are involved in the chargeback process do normally charge fixed fees (15-45 euros) per chargeback (disputed transaction).
In general, transaction reporting is included in the standard offering from Payment Service Providers. However, there are Payment Service Providers that will charge extra fees for non-standardized reports.