Reducing Transaction Fees to Maximise Profit

Transaction fees are one of those silent costs that can quietly eat into your profits—especially if you process a high volume of payments. Most businesses accept the fees charged by mainstream providers as standard, but in reality, there’s often room to optimise.

If you’re paying 2.9% + 30p per transaction, you’re likely overpaying. That percentage might not seem like much on the surface, but when scaled across hundreds or thousands of orders, the numbers become substantial.

Why Lowering Fees Matters

Let’s say your average order value is £50. If you’re processing 1,000 transactions a month, a 2.9% + 30p fee equates to £1,750 in monthly costs. If you switch to a provider offering 1.0% + 18p per transaction, your monthly fee drops to just £68—a savings of over £12,840

Knarkz Payment Gateway is designed to offer businesses exactly that kind of savings—without compromising on performance, settlement speed, or security.

How to Reduce Your Transaction Fees

Here are several proven ways to reduce your payment costs:

Compare Providers: Don’t rely on the default platform everyone uses. Some solutions offer the same (or better) performance at a fraction of the cost.
Negotiate Based on Volume: If you’re processing significant volumes, many payment processors are open to custom pricing.
Avoid Unnecessary Add-ons: Some platforms charge extra for features you may not need. Streamline your stack and pay only for what you use.
Consider Settlement Speed and Chargeback Fees: Low transaction rates mean little if you’re losing money elsewhere. Look at the full picture. per year.

This kind of margin recovery can be reinvested into marketing, product development, or simply kept as profit. For businesses operating on tight margins, this change can be a game-changer.

With Knarkz Payment Gateway, we help businesses avoid hidden fees while offering tailored transaction rates based on your actual volume.

Smart Switching with Minimal Disruption

Many businesses worry that switching payment systems will cause disruption—but with the right provider and support, the transition can be seamless. Modern APIs and integration services mean you can switch without downtime, and even preserve your checkout experience and reporting tools.

We offer full onboarding support to help your business move to Knarkz Payment Gateway smoothly—with no interruptions and zero stress.

Final Thought

Reducing your transaction fees isn’t just a financial win—it’s a strategic one. It empowers you to run leaner, scale faster, and keep more of what you earn. If you haven’t reviewed your payment costs recently, now’s the time.

You owe it to your business to ask the question:

“Am I paying more than I should?”