E-commerce Fees on Common Merchant Payment Platforms in 2024

The e-commerce industry is expected to grow by 475 billion USD by the year 2028 according to recent reports. With the growth of online shopping, businesses are embracing e-commerce as a means to expand their reach and boost sales. However, along with the benefits comes the need for efficient and secure payment processing methods. In this article, we will delve into the world of e-commerce payment processing and explore the common merchant processor payment platform fees in 2024. We will specifically focus on popular platforms such as Stripe, PayPal, and other commonly used merchant payment platforms.

A Brief Explanation of E-commerce Payment Processing

E-commerce payment processing refers to the process of accepting and managing online payments for goods and services. It involves a series of steps that start when a customer makes a purchase on an e-commerce website and end when the payment is successfully processed and deposited into the merchant’s account.

The process begins with the customer selecting the desired items and proceeding to checkout. At this stage, they are prompted to enter their payment information, such as credit card details or login credentials for digital wallets like PayPal or Apple Pay.

Once the payment information is submitted, it is securely transmitted through encrypted connections and fraud detection tools to the payment gateway. The payment gateway is a service that authorizes and processes online transactions on behalf of the merchant.

After the payment is authorized by the gateway, it undergoes a series of steps to verify its legitimacy and prevent fraud. This involves verifying the customer’s identity and checking for any suspicious activity or discrepancies in the transaction details.

Finally, the funds are transferred from the customer’s account to the merchant’s account, a process that typically takes 1-3 business days depending on various factors.

What Are Payment Processor Fees?

Payment platform fees, also known as transaction fees or merchant fees, are charges imposed by payment processing platforms on merchants for facilitating electronic payments. These fees are typically a combination of a percentage of the transaction value and a fixed fee per transaction. Payment processors charge these fees to cover the costs associated with processing, securing, and transferring funds during online transactions.

Why Do Platforms Charge Payment Processor Fees to Merchants?

Payment processors invest in infrastructure, technology, and security measures to ensure seamless payment processing for merchants. They maintain robust payment gateways, employ fraud detection systems, and comply with industry regulations, all of which come with financial costs. Payment processor fees help offset these expenses and allow platforms to continually enhance their services to meet merchants’ evolving needs.

Common Merchant Payment Processor Fees

It’s important for merchants to carefully review and understand the fees associated with various payment processing services. By considering factors such as transaction volume, types of transactions (domestic or international), integration requirements, and customer preferences, merchants can make informed decisions about the most suitable payment processing solutions for their business.

One of the most common e-commerce payment platform fees is online transaction fees. These are charges imposed by payment processors for processing payments made through e-commerce platforms or websites. These fees cover the cost of payment gateway services, fraud prevention measures, and transaction processing infrastructure provided by the payment processor. Online transaction fees are usually a combination of a percentage of the transaction value and a fixed fee per transaction.

Chargeback fees are also common charges imposed by payment processors to merchants when a customer disputes a transaction and initiates a chargeback. This fee covers the administrative costs incurred by the payment processor in managing the chargeback process, investigating the dispute, and facilitating communication between the merchant, customer, and relevant financial institutions. Chargeback fees serve as a deterrent against fraudulent or unjustified chargeback claims.

Now let’s dive into the common merchant payment processor fees for popular e-commerce payment solutions platforms such as Stripe and PayPal.


Stripe is a widely used payment processing platform that offers a suite of tools and services for businesses to accept payments online. Here are some of the common fees associated with Stripe:

  • Standard Credit Card Transaction: 2.9% + $0.30 per transaction.
  • Digital Wallet Transaction (e.g., Apple Pay, Google Pay): 2.9% + $0.30 per transaction.
  • International Transaction: Additional 1% fee.
  • Chargeback Fee: $15 per disputed transaction.


PayPal is another well-known name in the e-commerce payment processing industry, offering a wide range of payment options for businesses. Here are some of the common fees associated with PayPal:

  • Domestic Transactions: 2.59% + fixed fee (varies by currency).
  • International Transactions: Additional 1.50% fee.
  • Chargeback Fee: $20 per disputed transaction.
  • Advanced Fraud Protection Services: $10/month + $0.05/transaction (optional).

Comparing Fees of Different Payment Processors

Popular payment processors such as Stripe or PayPal come with varying fee structures, including a percentage of each transaction, flat fees per transaction, and additional fees for specific types of transactions like chargebacks or returns.

Merchants should carefully consider the cost analysis of the fee structures of different payment processors to determine which aligns best with their business needs. It’s also essential to consider the additional features and services offered by each payment processor, such as fraud prevention measures, dispute resolution support, reporting and analytics, and integration with popular e-commerce platforms. These features, along with the fees, should be evaluated together to identify the payment processor that offers the best combination of services and affordability.

Navigating E-commerce Payment Processing Fees: A Crucial Step for Efficient Online Operations

Overall, understanding and comparing e-commerce payment platform fees is crucial for businesses to make informed decisions. Evaluating fees based on transaction types and business needs allows merchants to find the most suitable payment processor that aligns with their requirements. Additionally, considering international transaction fees and currency conversion costs is essential for businesses operating on a global scale.

By comparing the fees of different payment processors, merchants can choose the best option that offers competitive rates and additional features that support their e-commerce operations. Staying informed about e-commerce payment processing fees is paramount to optimize your financial planning and ensure efficient payment processing in 2024 and the years ahead. At Checkout Champ, we offer a variety of payment processing platform integrations, so you’ll be able to choose the option that makes the most sense for your e-commerce business.

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