Processor Switch Break-Even Planner for eCommerce Stores

How eCommerce stores should fill in the planner

Nearly every eCommerce sale is card-not-present, and card-not-present transactions generally carry higher interchange than tapped or dipped cards. That is why the planner's built-in assumption for eCommerce stores starts higher than for retail. If you also sell at pop-ups, markets, or trade shows, include that volume in your monthly total and check the mobile reader box so your checklist covers it.

For 'Current total monthly processing cost', add everything you pay to accept cards online: the processor's fees, any separate gateway monthly or per-transaction fee, PCI compliance or non-compliance fees, address verification fees, batch fees, chargeback fees, and annual fees spread across 12 months. eCommerce stores often pay a processor and a gateway separately, and leaving the gateway fee out makes your current cost look lower than it is.

Online sales are seasonal for many stores, with a heavy fourth quarter and a slower start to the year. Do not use your best December or your slowest February. Average the last 12 months of volume and cost if you can, or use a month that looks typical. The planner assumes savings stay constant every month, so a typical month gives a more honest break-even.

For average ticket, divide monthly card volume by your order count from your cart dashboard. Ticket size matters online because a fixed per-transaction fee weighs more on small orders: a $0.10 fee is about 0.67% of a $15 order but about 0.07% of a $150 order.

Worked example: a hypothetical eCommerce store

These numbers are made up to show how the math works. Say an eCommerce store processes $60,000 a month at an average order of $75 (800 orders). Its statements total $1,950 a month, an effective rate of 3.25%, shown next to the planner's eCommerce assumption of 3.15%. It has a $495 early termination fee, no equipment lease, 8 months left on its contract, and budgets $300 of developer time to swap the cart payment plugin. It leaves expected savings blank.

The planner then estimates a new cost using its eCommerce assumptions: 1.95% average interchange plus a 0.20% markup on $60,000 is $1,290, plus 800 orders at $0.10 is $80, for $1,370 a month. Estimated savings (assumption-based) are $1,950 minus $1,370, or $580 a month. Upfront switching cost is $495 plus $300, or $795. Break-even is 2 months, which the tool rates 'Strong case to switch.' The 12-month net is a $6,165 gain and the 24-month net is a $13,125 gain.

Because the contract has 8 months left, the gated switch-now-vs-wait view compares the $495 fee with 8 months of forgone savings ($4,640). In this hypothetical, switching now comes out ahead by $4,145. If the savings were real but much smaller, waiting out the contract could win instead.

Estimates are based on published industry averages and are not a quote. Actual rates depend on card mix, ticket size, industry, and underwriting.

Switching costs eCommerce stores tend to miss

Saved cards and subscriptions. If you charge stored cards for subscriptions, reorders, or one-click checkout, those card tokens usually live with your current gateway or processor. Whether they can be exported to a new provider depends on your current provider's policies and PCI security requirements. If they cannot be moved, customers may need to re-enter cards, and some will not. Ask about token export before you give notice, and put any expected churn into 'One-time cost to switch' as a dollar estimate.

Cart and gateway connections. Switching usually means installing or reconfiguring a payment plugin on Shopify, WooCommerce, Magento, or BigCommerce, or repointing an Authorize.net or NMI gateway. Budget for developer time, testing, and a few test orders. Some cart platforms charge their own fee when you use an outside payment provider, so check your cart plan's terms and include that cost in your current or new monthly figures.

Refunds and chargeback history. On many pricing plans, the fee on the original sale is not returned when you issue a refund, and each chargeback can carry its own fee. If your store has meaningful return volume, make sure those fees show up in your current monthly cost so the comparison is fair.

The full checklist (free with your email) adds a section for your specific cart, a gateway section, and a recurring billing and token migration section if you check that box.

Reading your result as an eCommerce store

With no countertop terminals or POS leases, many eCommerce stores have small upfront switching costs. That means the break-even figure depends almost entirely on whether the monthly savings are real. If the planner shows a sanity flag about savings being unusually high, get a line-by-line statement review before acting on it.

Timing matters more online than in most industries. A checkout problem in November costs more than one in February. If your result is positive, plan the cutover for a slower stretch and leave time to run test orders, confirm deposits are landing, and check that fraud and address verification settings carried over.

A 'Marginal' or 'Hard to justify' verdict is not a dead end. It usually means you should ask your current provider to waive or lower the termination fee, confirm your auto-renewal notice window, or compare the full cost again once the contract ends.

If you want a second set of eyes on your statement before deciding, talk to a payments specialist at TouchSuite.

Frequently asked questions