Payment gateway cost as a percentage of net revenue.
| Metric | Definition |
|---|
| Gateway Cost | Total payment gateway processing fees |
| Net Revenue | Revenue after discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your store processed $125,000 in net revenue with $3,125 in gateway fees:
| Month | Net Revenue | Gateway Cost | Gateway Cost % |
|---|
| January | $125,000 | $3,125 | 2.5% |
| February | $142,000 | $3,692 | 2.6% |
| March | $118,000 | $2,832 | 2.4% |
How It Works
Gateway Cost % divides total payment gateway fees by net revenue, showing what percentage of each sale goes to payment processing. This metric helps benchmark processor costs—typical rates range from 2% to 3% depending on payment method mix and processor agreements.
When to Use
| Scenario | Action |
|---|
| Processor benchmarking | Compare your rate against industry standards (2-3%) |
| Negotiating rates | Use historical data to negotiate better processor terms |
| Payment method analysis | Identify high-cost payment methods driving up fees |
| Margin optimization | Find opportunities to reduce transaction costs |
| Metric | Relationship |
|---|
| Gateway Cost | Numerator—total gateway fees |
| Net Revenue | Denominator—revenue after adjustments |
| Gateway Cost Per Order | Per-order view of gateway fees |
| Total Transaction Cost | Includes gateway plus other transaction costs |
