by:
JackCoopersmith
Let's be honest, payment pricing can be confusing - from different payment methods to billing charges to processor choices to all of the little fees that can add up, there are times when it feels like you need to bring in Sherlock Holmes simply to understand what you're paying to get paid. With Commerce Hub we're trying to keep things simple, let's unpack exactly how we're approaching this....
Monthly cost and commitment
No monthly cost, no minimums, no commitments, nothing! Fees are only incurred when payments are actually processed with Commerce Hub (literally clicking the "pay" button on a Commerce Hub checkout page).
The two "types" of fees
Commerce Hub began as a payment processor (HubSpot payments) and while we've certainly gone deeper in payment processing functionality, we've also rounded off our billing platform (think subscriptions/subscription management, milestone billing, etc). Because of this, like many other companies in our space (more on this below), we have:
- Processing fees that are industry standard
- A "platform fee" to access and leverage our HubSpot's billing platform
Payment processor choice - the engine to power the Hub
This is one of the bigger factors when it comes to cost and is the first step when configuring Commerce Hub. We offer two choices today:
- Stripe payment processing. Your Stripe processing fees + .75% platform fee which is uncapped on all transactions
- HubSpot payments. Standard processing fees + .5% platform fee, capped at $10 for ACH. Because of this cap and the lower platform fee alone, HubSpot payments is the more cost effective option
Because HubSpot payments and Stripe payment processing function the exact same way within HubSpot, the processor you choose is essentially like the engine to your car - it's not something you see and simply works behind the scenes.
Other considerations regarding processor choice
- Currently if you're outside of the United States, Stripe payment processing is your only option (for now, stay tuned!)
- If you need subscriptions migrated, Stripe payment processing is your only option (for now, stay tuned!)
I'm still confused, give me an example
Let's break down the cost of a $9k transaction....
With HubSpot payments:
- Credit/debit card - $306. $261 for processing (2.9% of $9k) + $45 for platform fee (.5% of $9k)
- ACH: $20 ($10 cap for processing + $10 cap for platform fee)
With Stripe payment processing:
- Credit/debit card - $328.50. $261 for processing (2.9% of $9k) + $67.50 for platform fee (.75% of $9k)
- ACH: $72.50. ($5 cap for processing + .75% platform fee)
If you want to play around a bit more, check out our brand new pricing calculator here!
How does this compare to platforms completely separate from HubSpot/Commerce Hub?
I'm glad you asked - we're following the pricing models of most of our competitors. Specifically:
- Stripe billing is .7% on top of processing fees (slightly less expensive than Stripe payment processing, more expensive than HubSpot payments)
- Chargebee is $599/month for the first $100k in volume, then is .75% on top of processing fees
As you'll see, payment processing is separated from billing, just as HubSpot is doing with our platform fee vs processing fees.
Also, I'd be remiss if I didn't mention that having your commerce process/data completely separate from your CRM is silly, which is why we've built Commerce Hub the way we have 😉.
Final thoughts
Because HubSpot payments aggregates all of our customers to get lower rates (essentially "wholesale rates") it will almost always be the cheaper option. We want to provide you with options, we also want to save you money with HubSpot payments if possible!
