Payment Gateway Fee Calculator: Compare Payment Processors & Reduce Transaction Costs

Payment processing fees silently drain 2-5% of every transaction, creating a hidden tax on revenue that compounds to tens or hundreds of thousands of dollars annually. A store processing $500,000 yearly at the typical Stripe rate of 2.9% + $0.30 pays $14,500 in payment fees plus $3,600 in per-transaction charges—over $18,000 annually just to accept payments. Different payment gateways charge vastly different rates: Stripe charges 2.9% + $0.30, PayPal charges similar rates but adds currency conversion fees, Square offers simpler flat rates, and bank transfers or ACH can cost as little as 0.8% with no per-transaction fee. This comprehensive payment gateway fee calculator helps WooCommerce store owners calculate exact annual payment processing costs across different gateways, compare total fees between processors (percentage + fixed + monthly), identify which gateway is cheapest for your average order value, optimize payment strategy by steering customers to lower-cost methods, and reduce processing fees by thousands annually through smarter gateway selection and conditional payment rules.

Whether you’re paying excessive fees without realizing cheaper alternatives exist, processing international payments with hidden currency conversion charges, offering multiple payment methods without knowing which costs least, losing money on small orders where fixed fees dominate, wanting to incentivize lower-cost payment methods like bank transfers, or trying to calculate if negotiated rates from your current processor are actually competitive, this calculator provides the analysis needed to optimize payment costs. Calculate exact annual fees for each gateway you use, compare processors side-by-side to find the cheapest option, see break-even points where different processors become more economical, measure savings from steering customers to cheaper methods, and implement conditional payment strategies that reduce fees without harming conversion.

Why Payment Processing Fees Cost More Than You Realize

Most store owners see “2.9% + $0.30” and think “that’s just the cost of doing business,” but they’re drastically underestimating the actual cost because they ignore per-transaction fees, don’t compare alternatives, and fail to optimize which gateways they show to which customers. Here’s what makes payment processing so expensive and why most stores overpay:

• Per-Transaction Fees Destroy Small Order Profitability: The fixed $0.30 fee per transaction seems trivial until you calculate its impact on small orders. On a $10 order, 2.9% is $0.29, but the $0.30 fixed fee brings total processing to $0.59—that’s 5.9% of the order. On a $5 order, it’s 8.8%. If 30% of your orders are under $20, you’re paying 4-6% processing on a huge segment of revenue. Bank transfers or ACH cost 0.8% flat with no fixed fee—on that $10 order, the cost is only $0.08 instead of $0.59. The savings on small orders is massive but invisible if you don’t calculate it.
• International Fees are Hidden and Expensive: PayPal charges an additional 1.5% currency conversion fee on international transactions, turning 2.9% into 4.4%. Stripe adds 1% for international cards. If 20% of your revenue comes from international customers and you process $500K annually, that’s $100K international at 4.4% = $4,400 in fees versus 2.9% = $2,900—a hidden $1,500 annual surcharge. Most stores don’t even realize these fees exist because they’re bundled into “processing fees” on statements. Offering region-specific gateways can eliminate these surcharges entirely.
• Offering Every Gateway Maximizes Fees: The conventional wisdom says “offer every payment method to maximize conversions.” But if you offer Stripe (2.9%), PayPal (2.9% + 1.5% international), and bank transfer (0.8%), you’re letting customers choose the most expensive option. Smart stores use conditional payment methods to guide customers: domestic orders under $50 see only Stripe, domestic over $50 see both Stripe and bank transfer with incentive (“Pay via bank transfer, save 2%”), international orders see regional gateways instead of expensive PayPal international. This can cut fees 20-40% without harming conversion.
• Monthly Fees Aren’t Included in Comparisons: Stripe has no monthly fee. PayPal charges $30/month for advanced features. Square charges $0/month but higher per-transaction rates. When comparing “2.9% vs 2.5%,” most stores ignore that the 2.5% processor charges $60/month. At $10K monthly revenue, 2.9% Stripe costs $290, while 2.5% + $60 costs $310—Stripe is cheaper despite higher percentage. At $50K monthly, 2.5% + $60 ($1,310) beats 2.9% Stripe ($1,450). Most stores don’t do this break-even analysis and choose processors that look cheaper but cost more at their revenue level.
• ACH and Bank Transfers are Dramatically Cheaper: ACH/bank transfer processors charge 0.5-0.8% with no per-transaction fee. On a $1,000 order, Stripe charges $29.30 (2.9% + $0.30). ACH charges $8 (0.8%). That’s $21.30 savings per order. If you process 100 orders of $1,000+ monthly, steering even 30% to ACH saves $640/month ($7,680/year). The problem: stores don’t offer ACH or bank transfer prominently because they think it harms conversion. Smart stores offer it only for large orders ($500+) with a 2% discount incentive ($10 saved on $500 vs $14.50 processing cost = store still saves $4.50).
• Negotiated Rates Aren’t Always Better: Some payment processors offer “custom pricing” for high-volume stores: “We’ll give you 2.5% + $0.25 instead of 2.9% + $0.30.” Sounds great until you calculate: at $50K monthly revenue with $75 average order size (667 orders), Stripe costs $1,450 + $200 = $1,650. “Custom” 2.5% + $0.25 costs $1,250 + $167 = $1,417—saving $233/month ($2,796/year). But if you split volume 70% Stripe, 30% ACH ($15K via ACH at 0.8% = $120), your blended cost is $1,155 + $200 + $120 = $1,475—still $58/month worse than optimized gateway steering, which costs nothing. Negotiated rates help, but conditional payments help more.

This calculator helps you stop overpaying by calculating exact annual fees for each gateway you use or consider using, comparing processors side-by-side including percentage + fixed + monthly fees, identifying break-even points where different processors become economical, showing savings from steering customers to cheaper payment methods, and revealing ROI of implementing conditional payment strategies based on order value, location, or shipping method. Use it to understand your true processing costs, find the cheapest gateway for your order profile, measure potential savings from optimized payment routing, and implement smart payment strategies that save thousands annually without sacrificing conversion rates.