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Transaction cost metrics track payment processing expenses—gateway fees, interchange costs, and other transaction charges.
Data Source: Shopify
Metrics: 11

Metrics in This Group

MetricDescriptionWhen to Use
Gateway CostPayment gateway feesTrack processing costs
Gateway Cost Per OrderGateway cost per orderPer-order fees
Gateway Cost %Gateway as % of revenueFee burden
Other Transaction CostAdditional transaction feesMisc processing costs
Total Transaction CostAll transaction costs combinedTotal processing burden
New Customer Gateway CostGateway fees for new customersSegment analysis
Returning Customer Gateway CostGateway fees for returning customersCompare segments
New Customer Other Transaction CostOther fees for new customersDetailed new customer costs
Returning Customer Other Transaction CostOther fees for returning customersDetailed returning costs
New Customer Total Transaction CostAll transaction costs for new customersTotal NC payment burden
Returning Customer Transaction CostAll transaction costs for returning customersTotal RC payment burden

How These Metrics Relate

Transaction costs impact contribution margin at the CM2 level:
  • Total Transaction Cost = Gateway Cost + Other Transaction Cost
  • New Customer Total Transaction Cost = NC Gateway Cost + NC Other Transaction Cost
  • Returning Customer Transaction Cost = RC Gateway Cost + RC Other Transaction Cost
  • CM2 = CM1 - Fulfillment Costs - Transaction Costs
  • Gateway Cost % typically ranges from 2-3% of revenue for most processors

Choosing the Right Metric

  • Payment optimization: Use Gateway Cost % to benchmark processor fees
  • Per-order economics: Use Per Order metrics for unit economics
  • Total processing: Use Total Transaction Cost for full payment burden
  • Customer profitability: Compare New vs Returning transaction costs