Basic fee – pay regularly for provision of payment forms on websites.
Many service providers usually charge a consumption-independent basic fee for the provision of services. In the payment industry, too, many payment service providers charge their customers a fixed basic fee for the provision of several payment options, payable monthly or annually. The basic fee is always due, even if no transactions have been processed. However, there are also providers who make the basic fee dependent on turnover.
Basic fee is fixed and due regularly
Like the discount and transaction costs, the basic fee must be paid regularly if you want to use the service of a payment provider for an online store or paid content. However, unlike the discount and transaction costs, the basic fee is fixed and can therefore be easily included in business analysis and planning. Together with the basic fee, the transaction costs and the discount, as well as the one-time setup fee, store operators can incur considerable costs for implementing payment methods in their web stores. For example, the inevitable need to integrate various payment options sometimes significantly reduces an online merchant’s margin, so he has to take this into account when calculating his prices.
Providers without basic fees are recommended for small stores
Since the price war on the Internet is often fought in the cent range, small and medium-sized stores with fluctuating prices cannot afford a payment provider with a fixed basic fee. These merchants then often switch to payment service providers that do not charge a basic fee.
Selecting a payment provider based on price and payment methods offered
When deciding on a payment provider, profitability and effectiveness play a decisive role. That’s why store operators should choose a low-cost payment service provider that offers the payment types that suit their target group. For example, older customers prefer to pay by credit card or use providers they are already familiar with, while younger Internet users are more likely to try out new forms of payment. German store operators opt for around three to five different payment options, for which they incur different costs. However, online merchants can steer customers toward the merchant’s favourite payment method by cleverly placing the individual payment forms during the payment process. Discounts and commissions can also be used to control customer payment processes, at least in part.
