How payment processing fees affect your selling price and margin
Model percentage and fixed transaction fees so your expected gross profit is not overstated.
Card processors and marketplaces may charge a percentage, a fixed amount or both. Because some fees are calculated from the selling price, they can materially reduce the margin you expected from product cost alone.
Separate variable and fixed fees
A percentage fee grows with the transaction value, while a fixed fee affects low-value transactions more heavily as a percentage of revenue.
Model both when they are predictable and relevant to your gross-profit analysis.
Avoid double counting
Decide whether processing fees belong in product cost, selling expense or another accounting category and use one consistent approach.
The purpose of a pricing model is decision support; your financial statements may classify the same cost differently.
Test multiple order values
A pricing structure that works at a high average order value may produce weak economics on small transactions.
Compare expected margins across realistic basket sizes, discounts and payment methods.
This guide provides general educational information and is not legal, accounting, tax or financial advice. Requirements vary by country, industry and transaction. See how Docuivo tests its tools and calculations.