Most business owners think of processing fees as a small percentage — 2.5%, 3%, maybe 3.5%. As a percentage of revenue, it doesn't seem alarming.
But revenue isn't what matters. **What percentage of your profit are processing fees consuming?**
Processing Fees as a Percentage of Net Profit
| Industry | Typical Net Margin | Monthly Card Revenue | Processing (3%) | Processing as % of Net Profit |
|---|---|---|---|---|
| Restaurant | 5% | $60,000 | $1,800 | **60%** |
| Grocery | 2% | $100,000 | $3,000 | **150%** (exceeds profit) |
| Salon | 8% | $30,000 | $900 | **38%** |
| Boutique Retail | 6% | $25,000 | $750 | **50%** |
| Coffee Shop | 7% | $20,000 | $600 | **43%** |
A restaurant with a 5% net margin and $60,000/month in card sales is spending 60% of its net profit on processing fees. A grocery store may be losing money on every card transaction.
The Profit Impact of Network Offset Pricing
Eliminating processing fees doesn't just save money — it dramatically improves your profit margin.
| Business | Current Net Profit | Processing Saved | New Net Profit | Improvement |
|---|---|---|---|---|
| Restaurant ($60K/mo) | $3,000/mo | $1,800/mo | $4,800/mo | +60% |
| Salon ($30K/mo) | $2,400/mo | $900/mo | $3,300/mo | +38% |
| Retail ($25K/mo) | $1,500/mo | $750/mo | $2,250/mo | +50% |
Network Offset Pricing doesn't just save you $750 or $1,800/month. It increases your profit by 38%–60%.
Robert T. writes about the financial impact of payment processing on small business profitability. With an MBA and experience in small business lending, he quantifies how processing fee structures affect margins, tax deductions, and bottom-line performance.
$10,000+
in potential annual savings with optimized payment processing.
Get Started
The first step to reducing your processing costs is understanding exactly what you are paying today. Request a free statement analysis and we will show you a side-by-side comparison of your current costs versus what you could save with Network Offset Pricing.