What’s the Total Merchant Cost for Popular iGaming Payment Methods?

In the iGaming industry, choosing the right payment solution is one of the most important decisions a business can make. 

That’s because iGaming sites have a unique use case for customers where money is deposited and withdrawn regularly, plus there are greater regulatory requirements compared to traditional industries. 

This means your payment processing solution holds tremendous power over both customer acquisition/retention, revenue, as well as operating costs.  

This post explains how much popular payment processing solutions typically cost for iGaming companies. 
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Fees and total cost by iGaming payment type
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While it’s a best practice to offer a variety of funding/withdrawal options to appeal to the most amount of players possible, iGaming sites still need an understanding of the total costs they’ll be paying by processing type. 

This way, you can include total cost in your final assessment of which payment method to lean into the hardest—as a preferred deposit/withdrawal option. 

Note: The total merchant costs provided below are estimates based on a variety of factors. Costs will vary depending on specific agreements, merchant size, transaction volume, and the geographical location of transactions. 

Credit cards
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Mastercard and Visa are the primary credit card options used by iGaming sites. Here’s the breakdown for fees and costs. 

Transaction fees: Average credit card processing fees are 1.5% to 3.5% of each transaction, plus a fixed fee of around $0.10 to $0.30 per transaction. These are typically a combination of interchange and assessment fees. 

Monthly fees: It’s possible to have an interchange-plus scenario where the interchange and assessment fees are charged along with a flat monthly and per-transaction fee. The monthly fee may range from $9.95 to $20. The per-transaction fee can range from 0.18% plus 10 cents to 0.50% plus 10 cents.

Additional costs: Chargeback fees (can range from $20 to $100 or more per instance), PCI compliance fees, and possibly cross-border transaction fees.

Total estimated merchant cost: 2% to 5% of each transaction amount. This range includes transaction fees, potential monthly fees, chargeback fees, PCI compliance fees, and cross-border transaction fees where applicable.

Debit cards
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American Express, Discover, Mastercard, and Visa are the major debit card companies. Here’s the breakdown for fees and costs. 

Transaction fees: Generally similar to credit cards, around 1% to 3% of the transaction amount, plus a fixed fee.

Monthly fees: Can vary; some processors might offer lower monthly fees for debit transactions compared to credit transactions.
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Additional Costs: Like credit cards, there may be chargeback fees, PCI compliance fees, and other operational fees.

Additional costs: Like credit cards, there may be chargeback fees, PCI compliance fees, and other operational fees.

Total estimated merchant cost: 1.5% to 4% of each transaction amount. While generally lower than credit cards, the total cost still includes similar types of fees.

Digital wallets
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PayPal, Google Wallet, and Apple Pay are examples of internet-based digital wallets. Here’s the breakdown for fees and costs. 

Transaction fees: Some digital wallets charge a transaction fee every time a payment is made. These fees are usually a percentage of the transaction amount, plus a fixed fee (e.g., 2.9% + $0.30).

Withdrawal fees: Withdrawing funds from a digital wallet back to a bank account or card can incur fees. These fees vary but can be a flat rate (e.g., $5 to $10) or a percentage of the withdrawal amount (e.g., 1% to 3%).

Additional costs: Currency conversion fees if applicable (typically 2.5% to 3.5%), potential setup fees, and integration costs.

Total estimated merchant cost: 2.5% to 5% of each transaction amount. This includes transaction fees, withdrawal fees, currency conversion fees, and any setup or operational fees.

Cryptocurrencies
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Examples of cryptocurrencies include Bitcoin and Ethereum. Here’s the breakdown for fees and costs. 

Transaction fees: Can be very low, often less than 1%, with some services offering fee-less transactions.

Monthly fees: Typically, there are no monthly fees associated with accepting cryptocurrency payments.

Additional fees: Network fees for transactions, which vary by cryptocurrency and network congestion. These are usually paid by the customer but can sometimes be a consideration for the merchant in promotional scenarios.

Total estimated merchant cost: Less than 1% to 2% of each transaction amount, primarily due to network fees and potential conversion fees if converting cryptocurrency to fiat.

Note: While cryptocurrency fees are often low, the payment method is still considered volatile, complex, and not widely accepted. 

Online bank transfers
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Aeropay offers online bank transfer solutions for the gaming industry, partnering with notable companies like PrizePicks. 

Learn why Aeropay is the most trusted online bank transfer option in iGaming. 

Here’s the breakdown for fees and costs. 

Transaction fees: Often lower than credit card processing, can be a fixed fee (e.g., $0.50 to $3.00 per transaction) or a small percentage. Average credit card transaction fees can be as high as 3.5% or more per transaction.

Monthly fees: Some services may charge monthly fees, but many do not.

Additional fees: Chargeback fees if a transfer fails (e.g., buyer’s remorse), which can range from $0 to $25 per instance. Keep in mind that A2A companies selling guaranteed ACH payments will not protect against chargebacks like buyer’s remorse. Credit card fees are also often accompanied by processor SaaS fees which can quickly add up.

Total estimated merchant cost: 0.5% to 3% of each transaction amount. This range considers the fact online bank transfers have lower transaction fees and typically better protections against chargebacks.

Takeaways:
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• Considering cryptocurrencies are too volatile and risky to be considered a primary funding method, online bank transfers are the most affordable option for iGaming companies. 
• Credit cards are the most expensive payment method for iGaming companies. 
• It’s best to offer a variety of payment options on your site, but consider leading with A2A options like Aeropay to keep operating costs low and increase player conversion.

See how Aeropay pays for itself
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Aeropay is proud to be among the most affordable payment options available to iGaming companies. 

Also, Aeropay’s instant funding/withdrawal solution helps our merchants increase deposits and return customers so you end up earning more than ever. 

‍Learn more about Aeropay.