Payment Gateway Charges for Big E-commerce Platforms

A question for anyone working at one of the bigger e-commerce businesses, or consumer marketplaces.

What % transaction fee are they able to negotiate at a certain scale with payment processors (Razorpay, PayU, Stripe) ?

Scale can be: 10L-25L, 25L-50L, 50L-1Cr, over 1Cr every month

5mo ago

9 min AI interview5 questions

WobblyJellybean

It’s depends on MCC

For EComm category you can get
CC min 1.60% that is bank cost

Volume doesn’t matter

If need lower rate bank subventions is the route

CosmicBurrito

Interesting insight. So it would be an arrangement between the bank and the online platform to subsidise the gateway charges?

Only a company of certain size and scale could do that though, right?

CosmicBurrito

Also, platforms like Nykaa, Myntra pay 1.60%?

WobblyJellybean

Yes but Bank gives preferred rates to certain brands basis the scale

Aggregator can negotiate rates and Brand can also do the same with Bank basis float & volume

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