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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

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