Hidden Payment Gateway Costs MSMEs Often Miss

The hidden payment gateway costs may ruin any business experience. It directly affects a company’s earnings. Connected with our previous gateway service users, including the new one. We learned that most of them were not aware of the hidden costs they were being charged.

The untold charges include clear MDR fees, settlement charges, onboarding fees, and more. They all may put you to face various issues, such as low earnings, costs to manage your company’s operations, etc. It could be a huge problem for any business like yours and may force you to shut down.

The simplest solution is to understand the entire game and then prepare a strategy to align everything as your business requires.

In this blog post, we will discuss all about the hidden costs of payment gateways that you must know before you embark on using a gateway service.

What Are Hidden Payment Gateway Costs?

First of all, let us know what the payment gateway costs? It is a payment gateway service fee, debited from merchant transactions - happens between businesses and their customers. However, every gateway transaction fee may differ. Now the payment mode charges come in that differ, too! Each payment method, from netbanking, UPI, to card payments, all have different charges, which are the costs to a merchant.

Hidden payment gateway costs:

This is the same fee as the merchant transaction fee; some providers do not clearly state at first what the transaction fee will be for a merchant, which most of them do not know, especially new users with a payment gateway.

A payment gateway’s hidden fee can be as follows:

• A business transaction fee for all payment methods.
• Fees for payment gateway onboarding.
• Maintenance fees.
• Often subscription fees.
• International fees (cross-border payment charges).
• Onboarding fees.
• Refund charges.
• Maintenance costs.
• Reconciliation fees.
• MDR fees.
• Settlement charges.

Key Things You Must Know About Hidden Payment Gateway Costs for Any Business

A gateway’s hidden costs include several terms that are applied to every type of business. It will help you make informed decisions.

1. Do they charge any subscription fee?

You may ask your payment gateway service provider if they have any subscription which is paid. In case it is paid, and you are comfortable. Clear how much the subscription will cost you both annually and monthly.

2. Charges for Each Payment Mode

Did you know all payment modes have different transaction fees? If you do not know, be clear!

The first thing you need to do is to ask for all payment mode charges or the Merchant Discount Rate (MDR fee), including charges for UPI, netbanking, debit cards, credit cards, and others.

Note: You must determine what payment mode your business’s targeted audience is comfortable with. If the gateway supports that specific payment mode, and has a reasonable transaction fee, only then finalize, or most gateways offer customized prices also. It means choosing the payment mode your customers like and determining the fee for the same.

3. Customized Price

Custom payment gateway price is one of the best options that could help your company. Suppose your company targets customers who mostly use credit cards, you may ask for a customized fee. It will help you strategically prepare for the costs for each transaction, and make a significant earning also. So, choose intelligently and research well!

4. Maintenance Fee

The payment service provider you chose. Does the service provider charge any maintenance fees? If so, be clear and ask the provider for all the clear information about the fee.

• How long will they charge you?
• What will be the fee?
• What will be the terms and conditions for the fee, if applied?
• Will it be monthly or annually?

These are some of the crucial points you must keep in mind before you finalize any of a payment gateway service provider. It will help you determine the maintenance cost to your company and organize other business operations accordingly.

5. Know settlement charges

The payment gateway settlement charges, also known as on-demand payment settlement before the prior discussion of T+1 or T+2. In case your organization requires the payments to be settled on the same day instead of 1 to 2 days. It will be chargeable, which may cost you based on the settlement amount.

You must discuss and research all the providers in the market. In order to let the payment gateway in India align with your company’s requirements for the real time payment settlement.

6. Cashback Charges

The cashback charges are given by merchants to the payment service provider and further distributed to merchant customers. In order to attract and increase sales of merchants, by offering some attractive discounts to customers when they make a payment.

If you are not aware of these charges, you must study and then finalize with the payment service provider, in case the deal fits well for you.

How to Identify a Reliable Payment Gateway in India?

A payment service provider’s hidden payment gateway costs may spoil your experience. It is better to know all the hidden fees at the start and avoid any unwanted happenings.

Provide you with a clear pricing structure: the provider will show you a clear pricing structure. So, you get a clear understanding of the pricing and finalize the same, without any second thought.

May offer a customized offer: There are a number of providers who can help you align with your business needs by offering you a customized option. If you get such an option, you should negotiate and finalize the offer.

Aligns with RBI guidelines: It is mandatory for every Payment Aggregator (PA), and payment gateways to have transparency for the pricing before they onboard a merchant. Make you clever enough for such practices by the authorized bodies like Reserve Bank of India (RBI).

Why Choose Wonderpay for Your Cost Effective and Reliable Payment Gateway in India?

Wonderpay is known for its payment gateway services. Being one of the reliable payment gateway in India with its comprehensive services that aligns with merchants online payments needs. It makes the company stand out of the box and deliver the top financial services organizations needs.

• We have transparency.
• No hidden payment gateways costs.
• Customization services.
• RBI and PCI DSS compliant.
• Competitive pricing.

Our trusted, and reliable services make us unique and deliver our users with the finest solutions for the digital payments in India. In order to help businesses like yours to get the top services your business needs for smooth online payments and improved cashflow.

Final Thoughts

Transparency for the hidden payment gateway costs could be one of the keys to let it align with your business needs. Without the clear pricing, you may lose or face various issues like higher cost on your earnings, paying for the service that you may not be using but could be adjusted or customized as per the average ticket size, and more.

If you are seeking a reliable payment gateway service provider for your company with clear options of customizable. Wonderpay could fit your company’s exact requirements, and drive you with cost effective payment services for your organization.

Connect with us right now, and get a trusted payment gateway for your brand, right away.