Why e-commerce has more savings opportunities than any other industry
E-commerce processing is the most complex of any retail category — and that complexity creates leverage in both directions. The same factors that let processors overcharge are the levers a competent processor uses to save you money.
- Card-not-present interchange. Every online transaction is CNP and carries higher interchange than a card-present sale. But CNP also has many sub-categories — "Card-Not-Present Recurring," "Custom Payment Service," "Electronic Commerce" — each with different rates.
- International transactions. Cross-border fees can be 0.40% – 1.00% on top of base interchange. Processors should optimize routing to minimize these.
- Gateway and tokenization fees. Authorize.Net, NMI, Spreedly, Stripe — every gateway has fee structures that vary widely.
- Chargebacks. Card-not-present chargebacks are common; the per-incident fee varies dramatically (industry standard is $15 – $25; some processors charge $35 – $50).
- Network fees on subscriptions. Visa and Mastercard have specific recurring/subscription categories that get better rates if invoked properly.
What we look for in an e-commerce statement
- Flat-rate vs Interchange Plus economics — Stripe's 2.9% + 30¢ is fine at low volume but expensive past $20k/month.
- Recurring billing categorization — subscription transactions should be priced as recurring CNP, which is cheaper than standard CNP.
- Cross-border fee handling — if you sell internationally, these matter; if you don't, they shouldn't appear.
- Gateway fees — duplicates with processor fees (paying for gateway AND merchant account features that overlap).
- Chargeback fees — anything above $25 per chargeback is excessive.
- 3D Secure costs — fraud prevention layer; should be free or near-free but some processors charge.
- Subscription billing platforms — Recurly, Chargebee, Stripe Billing all have their own pricing. Should be evaluated alongside processing.
A typical e-commerce audit
Real example (anonymized): a DTC apparel e-commerce site on Shopify + Stripe, $48,000/month in card volume, average ticket $84, 7% international orders.
| Current cost | Optimized cost | Annual savings |
|---|---|---|
| Stripe 2.9% + 30¢ on all txns | Interchange Plus 0.30% + 12¢ | $10,140 |
| Stripe 1% international fee | Stripe-equivalent at IC+ | $324 |
| $25 chargeback fee × 12/yr | $15 chargeback fee × 12/yr | $120 |
| Year 1 savings: | $10,584 | |
Important caveat for e-commerce: Stripe's simplicity has real value, especially for early-stage businesses. We don't recommend everyone leave Stripe. But if you're at $30k+/month and you've grown out of "I'm just trying to launch," it's worth checking what optimized pricing would look like.
FAQ — e-commerce
Do you support Shopify, WooCommerce, BigCommerce?
Yes. All major e-commerce platforms support third-party processors via gateways. The integration is straightforward; we confirm before recommending any switch.
What about Stripe / Stripe Atlas / Shopify Payments?
Those are excellent products. We're not anti-Stripe. We just tell you the true cost vs. alternatives so you can decide whether simplicity is worth what you're paying.
I'm a SaaS / subscription business. Does this apply?
Especially. Recurring CNP has specific interchange categories that flat-rate processors don't surface. Subscription audits are often our highest-savings.
What about high-risk e-commerce (CBD, supplements, adult, gambling)?
High-risk pricing is structurally different. We'll be honest about whether we can improve your pricing — sometimes high-risk merchants are paying market rate and there's no room. Either way, the audit is free.