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For context, I'm in construction, so our margins are a little lower, but I've got to imagine that pretty much any business that isn't a fortune 500 company's gotta be feeling my pain here.
Just ran the numbers on what payment processing fees actually cost us last year now that my accountant brought me a new one and I'm genuinely angry at myself for not doing this sooner.
We did $2.8M in revenue. Sounds great until you factor in our 8% net margin - that's about $224K profit before fees.
Breakdown of what we paid:
\- Card transaction fees: roughly $47K
\- ACH transaction fees: roughly $23K
\- Total: $70K gone
That's 31% of our profit taken. Nearly a third. On a good year.
Anyone else feeling this pain? What has everyone here been using to actually get paid?
Edit: Thank you to everyone who has responded! Was trying to keep up with everyone but had to log off and now there's way too many to get back to everyone individually.
Been getting a lot of advice and messages about needing to switch/helping me switch processors. Just want to clarify that I already have switched and haven't paid a dime in processing fees over the past few weeks. Free service, $0 ACH fee, passes card fees automatically, and free instant settlement + can pay my subs. Really appreciate everyone trying to help but don't think I'm gonna find much better than that haha. Post was made more out of frustration with myself than looking for an answer, but glad to know I wasn't alone!