Transaction fees are a vital but often overlooked expense for small businesses accepting electronic payments. At Lytz, we understand that these fees impact your profitability, cash flow, and strategic planning far beyond the immediate cost per sale.

What Are Transaction Fees?

Each time a customer pays by credit card, debit card, or digital wallet, the payment processor charges a fee. This fee can be a percentage of the transaction amount or a fixed cost per payment. On average, businesses pay between 1.5% to over 3.5% per transaction depending on the payment type and provider.​

How Transaction Fees Impact Small Businesses

For small businesses operating with tight margins, fees add up quickly. Studies show that payment processing can consume roughly 1.5% to 2.0% of total revenue, sometimes equaling thousands of dollars annually. These costs influence pricing strategies, profitability, and investment capacity.

Hidden and Compliance Costs

Beyond basic fees, many small businesses face additional expenses for PCI compliance, chargebacks, gateway access, and fraud prevention. These can add thousands more to the annual payment processing budget. Lytz aims to minimize hidden fees and simplify fee structures so small businesses gain full clarity on costs.​

With transparent, cost-effective payment solutions, Lytz helps small businesses control transaction fees so every sale supports growth and sustainability.