In this era of rapid digital technology growth in Thailand, online payments have become an important part of daily life. This growth has resulted in payment gateways becoming more important and widespread, as businesses of all types require a system that can facilitate transactions conveniently, quickly, and securely.

In Thailand, there are a variety of payment gateway services to choose from, such as Omise, Card and Cash Payment Processor (2C2P), PayPal, and banks, each with different fee rates and terms of service. Therefore, it is important for entrepreneurs to understand payment gateway fee details to plan their finances effectively and choose the most appropriate service that best meets their financial transaction needs.

What’s in this article?

• Payment gateway fees
  
• How to calculate payment gateway fees
  
• Benefits of learning about payment gateway fees
  
• Summary of payment gateway fees in Thailand
  

Payment gateway fees

The main fees of payment gateways in Thailand can vary depending on the provider but are mainly as follows:

• Installation fee: This is the initial fee for installing a payment gateway system on a business’s website or application. Some providers might not charge an installation fee or might waive this fee.
  
• Monthly fee: This is a monthly recurring fee for maintaining the payment gateway system. This fee can cover information technology (IT) services and system updates.
  
• Per-transaction fee: Companies charge this fee per transaction, and it is typically a percentage of the transaction amount, such as 1.5%–3.5%, depending on the provider.
  
• Refund fee: If a customer requests a refund, the company will charge this fee to process it.
  
• Currency conversion fee: When performing transactions with foreign customers, some systems will convert currencies using the specified exchange rate and can incur an additional fee for converting a foreign currency into Thai baht (THB).
  
• Hidden fees: In addition to the fees mentioned above, some payment gateway providers might have interest rates or other hidden fees, such as interest rates on installment payments, bank account transfer fees, or fees for additional services.
  

How to calculate payment gateway fees

Here are the steps to calculate the basic fee for payments via a payment gateway in Thailand:

Calculate the per-transaction fee

There are two main ideas to consider regarding the basic method for calculating the per-transaction fee:

• The fee is a percentage of the payment amount. For example, the fee for credit card payments is approximately 2%–3% per transaction.
  
• There are fixed fees per transaction. For example, a quick response (QR) code or mobile banking payment fee is approximately ฿10–฿15 per transaction.
  

You can use the following formula to calculate the per-transaction fee:

(Payment Amount × Fee Rate) + Fixed Fee = Per-Transaction Fee

For example, the payment amount is ฿1,000, and the payment gateway system will charge a transaction fee of 2.5% and a fixed fee of ฿10.

Calculate the fee as a percentage:

฿1,000 × 0.025 = ฿25

Add the fixed fee:

฿25 + ฿10 = ฿35

Thus, the per-transaction fee equals ฿35.

Calculate the currency conversion fee

There are two main concepts to consider regarding the basic method for calculating the currency conversion fee:

• The currency conversion fee uses a percentage for the calculation, such as 2%–3% of the total amount converted.
  
• The currency exchange rate that payment gateway service providers use differs based on exchange rates to convert currencies. The rate used is specified by the service provider (e.g., ฿35 for $1 USD).
  

You can use the following formula to calculate the currency conversion fee:

(Principal Amount × Exchange Rate) × Conversion Fee Percentage = Currency Conversion Fee

For example, there is a payment of $100 USD, and you want to convert it to THB. The exchange rate used by the payment gateway provider is ฿35 for $1, and the currency conversion fee is 3%.

Calculate the principal amount in THB:

฿100 × ฿35 = ฿3,500

Calculate the currency conversion fee:

฿3,500 × 3% = ฿105

Thus, the currency conversion fee equals ฿105.
The total amount owed after currency conversion will equal the fee plus the principal amount:

฿3,500 + ฿105 = ฿3,605

Benefits of learning about payment gateway fees

Since each payment gateway provider has its own advantages and disadvantages, it’s important to compare their fees. Some might offer low transaction fees but come with a variety of additional charges or specific terms and conditions. Here are some examples of the benefits of carefully understanding and comparing each fee:

Meet business needs

Different types of businesses have different needs. For example, small businesses might want to choose a service with low transaction fees, while large businesses might want to choose a service that allows fast and secure money transfers—where fees are a secondary concern.

Understanding fees helps entrepreneurs choose a payment gateway that meets their business needs and usage. Stripe is a global online payment provider with the highest security standards and payment solutions built to meet the needs of businesses of all sizes, from startups to global enterprises.

Reduce costs

Understanding the details of fees—from per-transaction fees to hidden charges—can help businesses make informed decisions about which services to choose to meet their needs without overspending, which can reduce overall costs for businesses.

Prevent hidden costs

Some payment gateways have hidden costs, such as fees for transferring money back to an account or fees for special features (e.g., generating sales reports or managing user accounts). Understanding the fees can help prevent the possibility of incurring unnecessary additional costs.

Stripe has a simple, per-use pricing model that makes sense for businesses of all sizes. There are no setup fees, monthly fees, or hidden charges.

Handle currency exchange rates

For businesses that primarily deal with cross-border transactions, learning about currency conversion fees and foreign exchange rates can help you better plan for exchange rate fluctuations, reduce risk, and provide more stable sales revenue.

Stripe Payments reduces the complexity and cost of managing multiple currencies with flexible cross-border payment options. Available in 195 countries and over 135 currencies, Stripe has payment processing agents that work directly with banks and come with deep market knowledge and expertise.

Summary of payment gateway fees in Thailand

Before choosing a payment gateway service in Thailand, you should compare all related fees and carefully consider the details of the service terms and conditions so it meets your business transaction needs and provides long-term value. Moreover, you should check the credibility of the service provider, including security measures and support for the latest technology to prevent future risks.

Understanding the structure and conditions of payment gateway fee calculations can help you plan your business’s finances effectively, reduce operating costs, and increase your ability to compete in the online market.