Payment Terminal Costs: How to Check if You're Paying the Right Amount — Comparing and Analyzing PG Company Fee Structures
Are card payment fees really being deducted correctly every month? Online shopping malls, cafes, hospitals, academies — card payments are an unavoidab...
Are card payment fees really being deducted correctly every month?
Online shopping malls, cafes, hospitals, academies — card payments are an unavoidable cost at any business. But when you look at your settlement statement each month, don't you wonder? Why are payment terminal rental fees, commissions, and management charges so high, or whether these are market averages? Based on Sim Jae-woo, CEO of TheKL Link, who has diagnosed payment environments at over 200 business locations across 5 years, this article summarizes the standards for judging payment cost appropriateness and real cost-saving cases. This piece primarily covers how cost structures differ among major PG companies in the market and the basis for comparison. Please refer to Part 1, the comprehensive guide, which covered the overall payment cost structure and calculation methods.
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Online PGs and Offline VANs: Different fee structures from the start
Payment Gateway (PG) companies processing online payments (shopping malls, reservation systems) and VAN companies providing offline card terminals have completely different cost items. Online payments are typically simple with just one or two card commissions, while offline involves overlapping terminal rental fees, communication charges, and monthly management fees.
* Online PG: Bear only 2~3.5% commission on payment amounts. No separate equipment or fixed costs
* Offline VAN: Card commission (2.5~3.5%) + terminal rental (₩10,000~50,000/month) + communication fees (₩3,000~8,000/month) + monthly management fee (₩50,000~100,000/month) combined
* Key comparison point: When monthly sales are small, the fixed cost ratio is high, making the actual cost rate much higher than the stated commission rate
Key point: Even with the same "2.9% commission" contract, actual burden can differ by 30~40% depending on whether fixed costs are included.
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Total cost comparison by fixed cost inclusion: Actual burden varies this much
You cannot understand actual costs based solely on the stated commission of "2.5%". Only when you add up terminal rental fees, monthly management fees, and communication charges can meaningful comparison occur. Looking at real cases among TheKL Link's free diagnosis clients, it's common for businesses of the same industry and size to have total costs differing by 20~50%.
* Cafe A (Monthly card sales ₩8 million): 2.8% commission + ₩30,000 rental + ₩50,000 management fee = actual cost rate 3.5% (₩280,000/month)
* Cafe B (Monthly card sales ₩8 million, different PG company): 2.5% commission + ₩0 rental + ₩0 management fee = actual cost rate 2.5% (₩200,000/month)
* Savings: ₩80,000/month = ₩960,000/year possible
* Comparison key: A 0.3%p commission difference seems small, but when including fixed cost structure, real savings are much larger
* Industry differences: For hospitals and academies with high-value transactions, percentage savings are significant, but for cafes and small shops, eliminating fixed costs is more important
* Settlement cycle conditions: Must consider both same-day settlement and D+3 settlement's cash flow effects to calculate actual profit improvement
Key point: Don't compare just "commission rates"—you must compare based on "actual monthly expenses" combining fixed costs + commission.
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Function comparison tailored to unmanned, non-face-to-face, and recurring payment environments: PG companies respond differently
Recent businesses require not just face-to-face payments but also QR code payments, mobile convenience payments, and recurring payments (subscription, rental, membership). Operational convenience differs greatly between traditional card terminal-only PG companies and those offering integrated functions.
* Existing VAN companies: Provide only card terminals. QR, mobile, and recurring payments require separate contracts → increased management touchpoints, additional commissions
* Integrated PG solutions: Manage cards, QR codes, convenience payments, and recurring payments through single terminal/dashboard → simplified operations, fees managed in one place
* Customer satisfaction difference: Transaction completion rates increase with more diverse payment methods (especially for delivery apps and subscription businesses)
* Application priority: Restaurants/cafes (delivery apps) → QR essential / Beauty shops/academies (recurring payments) → billing essential / Hospitals (non-insurance billing) → non-face-to-face payment collection essential
* Actual effects: Managing 3~4 payment methods in one system can reduce staff work time by 8~10 hours monthly
* Contract caution: Must specify "integrated function provision" in writing to clarify responsibility when issues occur later
Key point: Whether non-face-to-face and recurring payment functions are available creates 8~10 hour monthly operational differences, and transaction completion rates vary by 2~5%p.
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Settlement cycle and cash flow: Same costs yield different profitability
Even with identical card commissions and fixed costs, actual cash flow differs depending on how many days pass before settlement enters. For small business owners whose salaries, rent, and food costs exit early month, settlement delays directly cause cash shock.
* Same-day settlement: Payment enters on transaction date or next business day. Most favorable for small business cash flow → reduced cash shortage risk, flexible discount/installment operations
* D+3 settlement: Payment enters 3 days after transaction. Commission may be 0.1~0.2%p lower, but hidden financing costs exist
* Cash flow effect calculation: At ₩20 million monthly sales, D+3 settlement delay causes average ₩6 million awaiting payment for 3 days → approximately ₩300,000~500,000 annual operational cost increase
* Industry impact variation: Self-service restaurants/delivery services (daily payment needed) > hospitals/academies (mid-month payment acceptable)
* Contract confirmation: Beyond settlement cycle, verify recovery time for system failures and cancellation/refund processing periods to judge actual financial stability
* Hidden conditions: Many cases where same-day settlement promised becomes D+2 with holidays included → must verify difference between "business day basis" and "calendar day basis" in contract
Key point: Even if commission is 0.2%p lower, 3-day settlement delay creates ₩300,000~500,000 hidden annual costs at ₩20 million monthly sales.
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Actual comparison between TheKL Link and major PG companies: How to verify through free diagnosis
TheKL Link matches business locations with the combination most fitting their conditions among 7 cooperative PG and VAN partners. In other words, rather than comparing commission rates alone, it improves both actual monthly costs and operational convenience by comprehensively considering commission + fixed costs + settlement cycle + functions.
Free diagnosis actual process:
* Diagnosis subject matters: Commission reduction possibility, monthly fixed cost removal feasibility, settlement cycle improvement, function integration possibility
* Time required: Initial diagnosis 15~20 minutes, cost analysis and guidance 3~5 days, final contract 1 week
* Savings track record: Many cases among diagnosis clients saving ₩50,000~300,000 monthly (varies by industry and scale)
Key point: The fastest way to verify current conditions are appropriate is through actual settlement statement-based free diagnosis.
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5-step checklist for judging payment cost appropriateness
Items you can verify yourself before receiving free diagnosis:
Organizing these 5 items beforehand and submitting with free diagnosis application can cut diagnosis time by 50% and receive customized proposals faster.
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FAQ: Frequently asked questions about payment cost comparison and free diagnosis
Q1: My current PG company said they're "already giving me the lowest commission rate." Do I need TheKL Link's diagnosis?
A: Yes. "Lowest commission" often refers only to commission rate, and when adding terminal rental, monthly management fees, and communication charges, actual costs can differ. TheKL Link compares based on "total costs" including all items, so even with identical commissions, there's high likelihood of opportunity to eliminate fixed costs or improve settlement cycles.
Q2: My current contract is a 3-year commitment with large early termination penalties—is it worth changing contracts for cost savings?
A: TheKL Link's diagnosis also reviews this aspect. If monthly savings exceed ₩150,000 and remaining contract period is 12+ months, changing could be economical even accounting for penalties. For example, ₩200,000 monthly savings × 12 months = ₩2.4 million savings minus ₩1.5 million penalty = ₩900,000 net savings. Diagnosis consultations present such calculations together.
Q3: I operate both an online shopping mall and offline store—can I reduce payment costs through integration?
A: Yes. TheKL Link can match online PG and offline VAN with the same partner, enabling combined dashboard viewing of online and offline sales with settlement received once. Additionally, integrated contracts sometimes allow 0.1~0.3%p commission reductions. Submitting both online and offline settlement statements during free diagnosis yields separate integrated savings proposals.
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Comparison analysis table: Differences in major PG cost structures
| Comparison Item | Traditional VAN | Small PG Company | TheKL Link (Partner Matching) |
|:---|:---|:---|:---|
| Fixed costs (terminal rental + management fee) | ₩80,000~150,000/month | ₩30,000~50,000/month | Free support available |
| Card commission | 2.7~3.5% | 2.3~3.0% | Industry-customized (2.1~3.0%) |
| Same-day settlement support | Unsupported or additional fees | Partial support | Selectable (D+0~D+3) |
| QR/convenience payment/recurring payment integration | Separate contracts required | Partial integration | Single terminal integration |
| Settlement dashboard | Web-based only | Web/app | PC/mobile/real-time |
| Contract change/termination flexibility | Low (12~36 month commitment) | Medium (12 months) | Medium (pre-discussion possible) |
| Technical support/failure response | Business location contacts directly | PG company customer team | TheKL Link mediates (higher priority) |
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Conclusion: Payment cost appropriateness diagnosis starting with one settlement statement
In an era where payment costs determine business net profit, you can no longer rely only on "X% commission" figures. Only by combining terminal rental fees, monthly management fees, communication charges, settlement cycles, and functionality can you truly judge whether current conditions are appropriate.
TheKL Link's free diagnosis starts with just one recent 3-month settlement statement. Based in central Seoul, CEO Sim Jae-woo provides direct consultation, and online diagnosis is also available. If you're curious whether current payment costs are appropriate or want to organize monthly payment-related expenses, apply for free diagnosis. You can verify not just commission reduction but also operational convenience and cash flow improvements together.
TheKL Link has operated payment environment diagnosis and optimization solutions for 5+ years in central Seoul, holding experience analyzing payment cost structures at 200+ business locations. Free diagnosis doesn't guarantee commission reductions or cost savings, but can serve as reference material providing objective evaluation and improvement direction of current conditions.
For free payment cost diagnosis, contact 010-2397-5734 or jaiwshim@gmail.com.
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