payment Talking about money around the introduction of the service. What are fixed costs and fees? Detailed explanation of how to check the benefits of introduction

There are many e-commerce businesses that want to introduce cashless payment, but are worried about "which payment method is cheaper in the end?" or "I don't know the market price of fees." Fees are directly linked to profits, so proper comparison and understanding are essential.

This article summarizes the credit card and QR code payment fee market that e-commerce businesses should keep in mind from the perspective of GMO Payment Gateway, Inc. (hereinafter referred to as GMO-PG), a professional who handles trillions of yen in payment per year. In addition, we will thoroughly explain the differences between payment processing services, hidden costs that are often overlooked (initial and monthly costs, transfer fees), and the deposit cycle that stabilizes cash flow.

Read this article to find the right payment service for your company and find specific steps to optimize costs while increasing sales.

payment What are fees?

payment Fees are the fees that e-commerce businesses pay to payment service providers when using cashless payment. Credit cards, electronic money, QR code payment, etc., have different rates depending on the payment method, and it can be said that it is an important cost that is directly related to profits.

For example, if a payment fee of 3% is charged for a 10,000 yen product, the operator's take-home pay is 9,700 yen, and if this cost accumulates throughout the year, the impact on management will be greater.

Still, payment of the commission is hard to avoid. payment processing business are investing in fraud measures, system stability, and security enhancements, so it's a necessary expense to provide payment safely and smoothly.

In addition, cashless payment can provide end-user convenience, improved purchasing experience, reduced cash management costs, and increased sales, all of which can lead to value for paying fees. It reduces the hassle of cash management, improves the efficiency of deposit and withdrawal management, and expands purchasing opportunities, so it is considered that there are many benefits to introducing it for businesses.

How cashless payment works and how payment fees work

Cashless payment is a mechanism in which multiple businesses are involved from the time a user purchases a product to the time it is deposited into the business.

In this flow, payment processing and remittance affairs are carried out, and payment businesses are required to pay payment fees in exchange for providing services. Understanding how it works makes it easier to understand when costs are incurred and how they are reflected in the deposit amount.

How cashless payment works

Cashless payment is a system in which transaction data is processed at the same time as a user purchases a product without using cash, and the money is deposited to the e-commerce business through each operator.

When you complete a payment, the payment processing business process the information and send the proceeds to the e-commerce business. A major feature is that when sales are credited, payment fees are deducted.

As payment processing business are committed to maintaining the payment network and taking fraud measures, the fees are set to cover the costs of its operation. It is thought that there is such a mechanism behind the fact that businesses can accept payment with confidence.

Costs of using cashless payment

There are several costs associated with implementing cashless payment. In particular, there are three points that e-commerce businesses should check to optimize costs.

• Initial costs: contract Costs for preparation, system setup, etc. Many payment processing services are free to tens of thousands of yen, but for complex API integrations, a separate estimate may be required.
• Monthly fixed cost: The cost charged as a system usage fee. Some cases are free, while others cost thousands to tens of thousands of yen for full features and support.
• payment Fees (main costs): payment are the main costs incurred depending on the amount. Credit cards are private, but about 3-7%, and major online IDs/ QR code payment are around 3%.

In addition, various Optional Services usage fees, transaction costs (fixed costs per transaction), and transfer fees for sales proceeds are incurred, and the sum of these is the true cost of the business.

Knowing the cost breakdown will make it easier to choose the payment service that suits your company and allow you to implement a cashless payment while reducing operational overwhelm. In particular, even if the initial and monthly costs are free payment the commission rate is high, or if the transfer fee is charged every time, the total cost will be higher.

Comparison of fee prices by payment method

From here, we will explain the most important payment method market prices in e-commerce. In addition, there are a wide range of criteria for calculating the actual commission, such as the difference in market price between the general product sales and the digital content of the products handled, so if you want to understand your company's conditions, we recommend that you contact the payment processing company company first.

Credit card payment Fee Quotes

Credit card payment fees are generally considered private (subject to review), but are generally considered to be around 3.0% to 7.0%.

Some of the main factors that can cause fee rates to fluctuate include:

1. Risks of industries and products: fraud (chargeback) Industries with high risk (e.g., digital content, products with high resale risk) tend to have higher rates.
2. Annual transaction volume (sales scale): The larger the annual transaction volume, the better the bargaining power with payment processing company companies and card companies, and the lower the rate tends to be.
3. Security measures: Businesses that have properly implemented fraud measures such as 3D Secure and Tokenization may also receive preferential rates.

ID payment (including major QR code payment) fees

QR code payment in e-commerce (e.g., PayPay, Rakuten Pay, Merpay, etc.) is mainly introduced as an "ID payment" mechanism that allows users to complete payment within the app.

• Quotes: Major ID payment are often offered at rates around 3.0%.
• Advantages: It is very effective as a "cart abandonment countermeasure" by incorporating young people and people without credit cards, and omitting information entry on the payment screen.

By choosing the implementation method according to the size of the e-commerce site, the system structure, and the customer experience they want to provide, businesses can optimize the total cost, including not only fees but also initial system development and operation costs.

payment How to reduce fees and achieve stable management

payment Fees are ongoing costs for businesses that are directly linked to profits. Therefore, it is necessary to devise ways to reduce fees within a reasonable range. The most effective way is to use your payment processing company company as a "cost negotiation partner."

payment processing services to gain "negotiation power" and "peace of mind"

payment To review fees, it is effective to use payment processing services, especially PSPs (Payment Service Providers), which have a large annual transaction volume.

• Leveraging bargaining power: PSPs like GMO-PG, which handle trillions of payment per year, have strong bargaining power over each card brand and payment processing business. Rather than negotiating alone, businesses are more likely to offer superior rates based on industry and throughput.
• Cost "visualization": Hidden costs that are often overlooked, such as initial costs, monthly fixed costs, and transfer fees, can be presented and centrally managed, making it easier to understand total costs.

Accurately explaining your business model and sales plan may lead to favorable terms for future volume growth.

How to choose by "non-cost" for payment processing services

When choosing a payment processing services, it is important to judge not only by the low fees, but also by the factors that form the foundation of the business, such as cash flow, security, and legal compliance.

1. "Deposit cycle" to stabilize cash flow

The speed of the deposit cycle is a more important criterion than low fees, especially for e-commerce businesses where cash flow is important.

• If the time lag between the completion of the payment and the actual transfer of sales is short, you can quickly reinvest in purchases and promotions, and stabilize your cash flow.
  [In the case of GMO-PG PG Multi-Payment Service] We can propose flexible deposit cycles tailored to the business scale, such as "Early Payment Service", which is standard for deposits made twice a month (1st to 15th of the month, and 16th to the end of the month on the 15th of the following month).

2. "Absolute reliability" in security and legal response

payment data is the most important of your personal information.

• Security standards: Since you are dealing with credit card information, it is essential to ensure that it is fully compliant with the international standard PCIDSS and that it has a good detection system (chargeback measures) using AI and machine learning to prevent fraud.
• Legal system compliance: The status of compliance with legal systems, such as the invoice system and the revised installment sales law, is an important point for long-term peace of mind.

[For GMO-PG PG Multi-Payment Service] We continue to invest heavily in strengthening our security posture, and our adoption Actual on financial institution and major e-commerce sites is a testament to our reliability.

If you introduce "payment processing services", you can use "GMO Payment Gateway"

For e-commerce businesses that want to operate cashless payment safely and efficiently, payment processing services is not just a payment system, but a "partner for sales expansion and cost optimization".

By deploying multiple payment method together, you can reduce management costs and enjoy robust security measures as standard.

With an annual payment turnover of trillions of yen, GMO-PG is the preferred choice of customers in a wide range of industries for its financial institution-level stable system and security standards.

In particular, if you have any of the following issues, please contact us immediately.

• Current payment feels high fees
• The deposit cycle is not flexible and there is concern about cash flow
• I want to strengthen the latest fraud measures (chargeback measures)

We'll listen to your business size, industry, and throughput to suggest the best combination of payment method and competitive commission rates.