Things you didn’t know about payments that will make or break your revenue

Payment processing seems boring until it starts costing you thousands. Those small percentages and hidden fees compound into serious money. Most businesses choose payment providers based on marketing, not math.

Authorization rates vary dramatically between processors. Your perfect customer enters their card details, clicks buy, and gets declined. Not because they lack funds, but because your processor has poor relationships with issuing banks. High-risk businesses see 20% differences in authorization rates between payment processing platforms. That's one in five sales lost to technical issues, not customer decisions.

Microtransactions eat profits with fixed fees. That 30-cent fixed fee per transaction means selling a $1 product costs you 30% plus the percentage fee. Providers like Stripe now offer special microtransaction pricing, but you need to specifically enable it. Most businesses never realize they're losing money on small sales.

International cards cost more than you expect. Your 2.9% rate might only apply to domestic cards. International cards often cost 1-2% extra. Currency conversion adds another 1-2%. That customer from overseas actually costs you 6% to process. Price accordingly or restrict sales geographically.

Subscription billing requires different infrastructure. Regular payment processors handle subscriptions poorly. Dedicated subscription platforms handle dunning, retry logic, and payment method updates automatically. The extra cost pays for itself in reduced churn.

PCI compliance isn't optional, even for small businesses. Those quarterly questionnaires aren't suggestions. Non-compliance fines start at $5,000 monthly. Worse, a breach without compliance means personal liability. Use hosted payment pages or certified solutions. Don't store card numbers in spreadsheets.

Chargebacks cost more than refunds. Beyond losing the sale and product, you pay $15-25 per chargeback. Too many trigger account reviews or termination. Prevent them with clear descriptions, recognizable statement descriptors, and excellent customer service. Refund generously to avoid chargebacks.

High-risk classification changes everything. Sell supplements, CBD, or digital products? You might be classified as high-risk. Rates double. Reserves get held. Account applications get rejected. Know your industry's classification before building your business model.

Multiple payment methods increase conversion. Not everyone has credit cards. Regional preferences vary wildly. Europeans love bank transfers. Asians prefer digital wallets. Americans use everything. Each payment method you don't accept is customers you're rejecting. Balance complexity with opportunity.