The High Cost of Payments: Regain Control Across PSPs, Banks & Networks

The High Cost of Payments: How to Regain Control Across PSPs, Banks, and Networks

Every transaction tells a story, but for global businesses, that story often comes with a hefty price tag. As companies expand across borders, the complexity and cost of accepting payments through multiple Payment Service Providers (PSPs), banks, and card networks quickly multiply. According to McKinsey, In 2023, the global payments industry handled 3.4 trillion transactions, accounting for $1.8 quadrillion in value and a revenue pool of $2.4 trillion. It grew 7% annually from 2018 to 2023, but our analysis suggests revenue growth will likely slow to 5% a year over the next five years. In this blog post, we’ll break down the many layers of payment costs, reveal why most businesses lack true visibility, and show how Optimus is helping enterprises regain control, cut costs, and drive growth across the entire payment chain.

The Many Layers of Payment Costs

Every payment you accept passes through a complex web of intermediaries, each taking a cut. Understanding these layers is the first step to regaining control.

1. PSP Fees: The Visible Slice

Payment Service Providers (PSPs) such as Stripe, Adyen, and PayPal make it easy to accept payments online. But convenience comes at a price. On average, PSPs charge between 2.5% and 3.5% per transaction, plus fixed fees. For a business processing $10 million annually, that’s up to $350,000 in fees before you even factor in refunds, chargebacks, or cross-border surcharges.

PSP-Related Fees:

• Transaction Fees: Charged per transaction, often a percentage of the payment amount.
  
  
• Gateway Fees: Fees for using the payment gateway service.
  
  
• Subscription Fees: Monthly charges for using the PSP's platform.
  
  
• Chargeback Fees: Costs incurred when a transaction is disputed.
  
  
• Refund Processing Fees: Fees for processing customer refunds.
  
  
• Currency Conversion Fees: Costs for converting payments between currencies.

2. Bank Charges: The Silent Drainers

Beyond PSPs, banks levy their own fees for settlement, currency conversion, and wire transfers. According to the World Bank, the average cost of sending international payments is 6.2%, with some corridors exceeding 10%. These costs are often buried in monthly statements, making them hard to track and optimize.

Bank-Related Fees:

• Wire Transfer Fees: Charges for sending money via bank wire transfer.
  
  
• Cross-Border Fees: Additional charges for international transactions.
  
  
• Maintenance Fees: Monthly or annual fees for maintaining a bank account.
  
  
• Returned Payment Fees: Charges for failed or reversed payments.
  
  
• Interchange Fees: Costs paid to the issuing bank during card transactions.

3. Card Network Costs: The Invisible Layer

Visa, Mastercard, and other card networks charge interchange fees, typically 1.5% to 2.5% on every transaction. These fees are non-negotiable and can vary by card type, region, and transaction channel. For e-commerce merchants, interchange can represent up to 70% of total payment costs.

Network-Related Fees:

• Assessment Fees: Charged by card networks (like Visa or Mastercard) for processing payments.
  
  
• Switch Fees: Charges for routing payments through specific networks.
  
  
• Processing Fees: Costs associated with the infrastructure needed to process card payments.
  
  
• Compliance Fees: Costs related to adhering to network security and compliance standards.
  
  
• Card Association Fees: Charges levied by the card network for each transaction.

4. Operational and Reconciliation Costs

Manual reconciliation, exception handling, and compliance checks add another layer of expense. A 2023 survey by EY found that 60% of finance teams spend at least 10 hours per week on manual payment reconciliation. This translates to thousands of hours and significant payroll costs annually.

The Visibility Challenge: Why Most Businesses Are in the Dark

With so many moving parts, most businesses struggle to see the true cost of payments. Fragmented data and siloed systems make it nearly impossible to optimize.

1. Siloed Data Across Providers

Each PSP, bank, and network provides its own reports, often in different formats. According to Accenture, 80% of CFOs cite “lack of unified data” as a major barrier to payment optimization. This fragmentation leads to revenue leakage, missed errors, and compliance risks.

2. Hidden Fees and Revenue Leakage

A study by Forrester found that businesses lose an average of 1.5% of revenue to hidden payment fees and reconciliation errors. Without real-time visibility, these losses go unnoticed until they snowball into major financial headaches.

3. Compliance and Security Risks

Regulatory requirements are constantly evolving. In 2024, PCI DSS 4.0 introduced stricter controls for data security, increasing compliance costs by 25% for multinational merchants. Without centralized oversight, businesses risk costly fines and reputational damage.

Regaining Control: The Optimus Advantage

What if you could see every fee, every transaction, and every anomaly in real time, across all your payment partners? That’s where Optimus comes in.

1. Full Payment Chain Visibility

Optimus provides a single, unified dashboard that aggregates data from all your PSPs, banks, and card networks. This eliminates data silos and gives you a 360-degree view of your entire payment ecosystem. With Optimus' help, clients have reduced revenue leakage by up to 80% in the first year.

2. Automated Reconciliation and Error Detection

With AI-powered reconciliation, Optimus automates the matching of transactions across providers, instantly flagging discrepancies and reducing manual workload by up to 90%. This not only saves time but also ensures financial accuracy at the transaction level, eliminating costly errors.

3. Real-Time Analytics for Strategic Decisions

Optimus delivers real-time insights into payment costs, acceptance rates, and performance by region, channel, or provider. This empowers finance teams to negotiate better rates, optimize routing, and forecast with confidence. A recent case study showed a Fortune 500 client increased payment acceptance rates by 12% and cut operational costs by 30% after deploying Optimus.

4. Compliance and Security, Built-In

Optimus is PCI DSS compliant and leverages advanced AI to detect anomalies, mitigate risk, and ensure regulatory compliance across all jurisdictions. This not only protects your business, but also boosts stakeholder confidence and trust.

The Bottom Line: From Cost Center to Growth Engine

Payment costs don’t have to be a black hole. With the right tools, you can turn your payment operations into a source of competitive advantage.

By unlocking full visibility and control across PSPs, banks, and networks, businesses can:

• Cut hidden fees and revenue leakage by up to 80%
• Reduce operational costs by 30% or more
• Boost payment acceptance rates and customer satisfaction
• Ensure compliance and mitigate financial risk

In a world where every basis point matters, the ability to see, control, and optimize your global payment flows is no longer optional;it’s essential for growth.

Take Action: Regain Control of Your Payment Chain

Ready to stop leaving money on the table? Optimus is trusted by Fortune 500 enterprises to deliver clarity, control, and cost savings across the entire payment lifecycle. Don’t let hidden fees and inefficiencies drain your bottom line. Visit Optimus today to schedule a personalized demo and see how you can transform your payment operations into a strategic asset. Take back control, because every transaction should add to your story, not your costs.