Which payment processor for high volume?
I'm building a marketplace (not stocks or currency), if successful it will have high volume (in the thousands, to tens of thousands daily) sales for products priced USD $1-$80. My earnings/cut will be 6% of the sales price. Now I am wondering which payment processor I should use?
Say I have in a single day 5000 sales at $15 = 75,000 USD
My 6% cut is 4500 USD.
Not sure I understand Stripe's terms correctly, would it be 2.9% of the 6% or 2.9% of $15? If it's the latter then that would leave me with a cut of just 3.1%
Don't forget payout fees.
Your calculations are on the inbound payment, if you need to pay your suppliers their 94% then can be an extra fee ontop.
Stripe offer this service, which could be a good option if already integrated, allows full automation.
Bank transfers are an option if you pay out once a month or similar, but fair bit of work even if eliminate fees.
But as mentioned, fees are negotiable with scale, plus 3% of 70k per day would be a great problem to have... but you won't get there unless you focus on and hit 3% of $700 first.
Low-risk payment processors in the US typically charge 2.9% + $0.3 for each processed payment, regardless of your margins. So in your case, you will be paying $0.73 on each $15 transaction (assuming you have a US-based account). For transactions where currency conversion is required, they will charge you an additional 1%. So in your case, you will be paying $0.87 each time someone pays in a currency other than USD.
Don't worry about it too much. In the happy event where you reach a scale you're talking about, they will be open to negotiate lower rates with you.
I would check out alternatives, and know your options. Look into Stripe, Dwolla + Plaid, Braintree, etc. You might even look into a pre-paid card option, which would allow for faster payments - Marqueta, NetSpend, etc.
It would be 2.9% of the $15.00. But it depends on how you pay/split these payments, as more costs might be involved.
2.9% of $15.00 is $0.44 ish
So $14.56 would be the sales transaction, but then you want 6%. So
6% of $14.56 would be $0.87 in yo pocket per transaction,
at 5000 sales of $15, you make $4,350
Also don't forget that $0.30 too 😭
2.9% of the 15USD. You can get a volume discount of above 80k USD monthly sales. In general, having a marketplace with sub 100 USD sales per average will provide you with a tiny margin to operate unless you can scale it up rapidly to million+ USD per month sales quickly.
It's 2.9% of whatever they process. So the full amount. They don't care how you divvy out the remaining funds (to yourself or the product owners).
This comment was deleted 4 years ago