Gateway Fee

A Gateway Fee is a cost imposed by a payment gateway provider in exchange for their payment processing services. This fee generally covers a range of services including the following:

  • transaction processing
  • encryption of sensitive data
  • fraud detection and prevention
  • and more

Gateway fees are an essential part of the revenue model for gateway providers and serve to compensate them for the technology and security infrastructure they provide to enable secure digital transactions.

The precise amount charged as a gateway fee can differ greatly between providers, and is usually influenced by a host of factors, including the following:

  • transaction volume
  • the risk associated with the business
  • the complexity of integration
  • the scale of the business
  • the breadth of services provided

Some providers may charge a flat monthly fee, while others may charge on a per-transaction basis or use a combination of both.