How each method actually charges you
The fee structures look similar but behave very differently when transaction size changes.
- Cards (Visa, Mastercard, Amex): typically 1.5–3.5 percent of the transaction plus a small fixed fee (0.20–0.30). Higher for international cards, premium cards, and Amex.
- Digital wallets (Apple Pay, Google Pay, PayPal): often the same percentage as card rails because they sit on top of cards — but PayPal-to-PayPal can be cheaper or free.
- Bank transfer (SEPA, Faster Payments, ACH, Wise): usually a small fixed fee per transaction (0.20–2.00) with no percentage component. Effectively free at large amounts.
The crossover point
Because cards charge a percentage and bank transfers charge a flat fee, there is always a crossover point where one becomes cheaper than the other. For a typical 2.5 percent card rate plus 0.25 fixed, and a 1.50 bank transfer fee, the crossover is around 50–100. Above that, bank transfer wins. Below it, the card is competitive.
For small consumer transactions (under 50), cards and wallets dominate because they are easy. For B2B invoices over a few hundred, bank transfer is almost always the cheaper option.
Domestic vs international
International payments break the rule above. Cross-border card transactions often add 1–1.5 percent and a currency conversion margin. International bank transfers via SWIFT can be 20–50 per transfer plus a hidden FX spread.
Wise and similar services usually beat both for cross-border payments under a few thousand. For very large international payments, a specialist FX broker often beats card and SWIFT combined.
Refunds and chargebacks
Cards charge a small refund processing fee (sometimes 0, sometimes the original fixed component is non-refundable). Chargebacks cost 15–25 each plus the refunded amount.
Bank transfers are almost free to refund and have no chargeback equivalent — but they are also slower and harder for buyers to dispute, which cuts both ways.
Practical guidance for SMBs
Offer both. Use card and wallet for low-friction, small-value transactions and lead with bank transfer for large invoices. On B2B invoices over 500, mention bank transfer as the preferred method on the invoice itself — most buyers will use it.
Track the effective fee rate (total fees divided by total volume) every quarter. If it has drifted up by more than 0.3–0.5 percent year on year, your product mix has shifted and it is worth re-shopping providers.