How much money can your business save by accepting crypto payments instead of credit cards? The answer may surprise you. Use the calculator below to find out!
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| Revenue | |
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| Profit margin |
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| Profitability increase |
Most business owners don't realize that even a small business earning 150,000 a year in profits can save five figures by switching from credit cards to crypto payment processing!
Why are the savings so substantial? Even though credit card processors charge low single-digits in fees, these numbers are calculated on the top line revenue. Most businesses earn only a fraction of the top line revenue in profits. In fact, an average business margin is around 15% after accounting for all expenses including taxes. A low single-digit percentage of the top line revenue translates into a double-digit percentage of the bottom line. For example, 3% of the revenue equals to 20% of profit for a business with a 15% profit margin!
Chargebacks losses are also deducted from the top line revenue. And, credit card processors charge various fees, such as a fixed per transaction fee and a chargeback fee. Some also charge monthly gateway fees, settlement fees, and other fees (not included in our model). These fees add up.
Businesses that are most vulnerable to incurring higher credit card payment processing expenses relative to their bottom line are the ones with lower margins, a lower average order value, or a higher chargeback rate.
The default numbers in the example assume a business with $1,000,000 in annual revenue and 15% profit margin paying 2.9% + $0.30 per transaction in processing fees (the standard rate for Stripe and PayPal) with 0.5% chargeback loss rate. Plug in your number to see how much your business is paying.
In contrast to credit card payment processors, crypto payment gateways can charge as low as a flat 1% per transaction with no fixed per transaction fees. And, there are no chargebacks with crypto.
Of course, not everyone prefers to pay with crypto (yet), but even if a small percentage of your customers pay with crypto, that's an extra 20%+ to your bottom line for each transaction!