Blog

Running an online business means watching your margins closely. You track marketing spend, product costs, and shipping. But what about payment processing fees?

For many merchants, card fees feel like a necessary evil. But when you add them up, they can eat into your revenue more than you realize - especially as you scale.

The true cost of card payments
Card transactions come with multiple layers of fees:

• Interchange (to the customer’s bank)
  

• Scheme (Visa, Mastercard, etc.)
  

• Acquirer (your processor or bank)
  

• Gateway (if separate provider)
  
  

Result: anywhere from 1.5%–4% per transaction.

• On a $100 sale, you lose $2–$4.
  
  
• Multiply that across thousands of orders, and you’re handing over tens of thousands each year.
  
  

The hidden hit: chargebacks and fraud
Card payments also bring risks:

• Lost revenue from disputes
  
  
• Chargeback fees ($15-$25 each)
  
  
• Time wasted on documentation
  
  
• Even the risk of losing your ability to accept cards if disputes stack up
  
  

The smarter alternative: Open Banking (Pay by Bank)
With Open Banking, payments move directly from your customer’s bank to yours:

• No card networks → no interchange or scheme fees
  
  
• Flat, low-cost pricing
  
  
• Zero chargebacks, payments are authorized and final
  
  

The savings:

• $100 card payment → $2.50+ in fees
  
  
• $100 Open Banking payment → $0.20–$0.50
  That’s up to 10x cheaper.
  
  

A better checkout too:

• No card numbers, CVVs, or expiry dates
  
  
• Customers authenticate securely via their bank
  
  
• Fewer failed payments
  
  
• Faster repeat checkout
  
  

Bottom line:
Cards are convenient, but costly. Open Banking gives you lower fees, no chargebacks, and a smoother checkout your customers love.

👉 See how much you could save. Book a quick call: sales@alternativepayments.com