Managing transaction fees can be a significant challenge for B2B companies. Payment Service Providers (PSPs) typically charge a percentage fee for each transaction, which can range from 2% to 5%. For large transactions, which are common in B2B settings, these fees can quickly add up. For example, a transaction worth $1000 could result in PSP fees as high as $50.
Currently, Sana Commerce only allows businesses to charge a fixed fee per transaction, such as $5. This can be enhanced where the fixed fee charged to customers fails to fully cover the percentage-based fees imposed by payment service providers (PSPs). As a result, businesses are left to absorb the additional costs, which can significantly impact profit margins and overall financial stability. This discrepancy is particularly problematic for high-value transactions, where the gap between the fixed fee and the percentage fee becomes even more pronounced, leading to substantial losses over time.
Introducing Percentage Payments
To tackle the issue of transaction fees, especially for customers in the United States, Sana Commerce Cloud has introduced an easy way to add a percentage fee to credit card transactions. You can quickly set up this fee, such as 3% or 5%, in the Sana Admin with just a few minutes of configuration.
How do you benefit?
Improved profit margins: By aligning the fees charged to customers with the percentage fees imposed by Payment Service Providers (PSPs), your web store can offer credit card payments and protect profit margins. This keeps your business financially stable, even on large transactions.
Enhanced customer trust: This feature solves a major concern for businesses hesitant to offer credit card payments due to the lack of percentage-based fee options. Now, businesses can confidently expand their payment options and make credit card payments available to their clients.
Ultimately, this feature enables web stores to, increase sales and improve profit margins.
How it works:
First of all, the customer must have an updated ERP connector. It’s good to keep in mind that SAP B1 and ECC connectors aren’t supported for this feature.
Configuration takes place in Sana Admin: Setup -> Ordering -> Payment -> Edit payment method.
In the section “Payment cost”:
Select a currency, for instance, “Euro”.
Select type “Percentage”.
Enter the percentage you wish to charge.
The payment costs will automatically be applied at checkout when the customer selects the appropriate payment method.
Conclusion
Managing payment transaction fees efficiently is crucial for maintaining profitability and customer satisfaction. By leveraging Sana Commerce Cloud’s ability to configure percentage-based payment costs, your business can seamlessly integrate these fees into the checkout process. This not only ensures financial accuracy and transparency but also enhances the overall customer experience by providing clear and predictable costs.
