How much does payment processing cost a prop firm?
Quick answer
Prop firms are usually classed as high risk, so card processing tends to cost more than for ordinary online stores, with higher percentage fees, possible rolling reserves and chargeback fees. Crypto processors usually charge lower percentages. Exact pricing depends on the provider, your volume and your history.
Detailed answer
General information. Payment providers set and change their own policies on prop firms; confirm the current terms with any provider before relying on them.
Elements that make up the cost:
- Transaction fee: a percentage plus a fixed amount per card payment, higher for high-risk merchants.
- Rolling reserve: a share of sales held back for a period to cover chargebacks.
- Chargeback fees: charged per dispute, regardless of outcome.
- Setup or monthly fees: some high-risk providers charge them.
- Currency conversion: if you price in one currency and settle in another.
- Crypto fees: typically lower percentages, but traders need to hold crypto.
Get written quotes from several providers, ask about reserves and payout timing, and keep a second option ready. PropExecutor does not process your traders' payments; you choose your own processor, and the platform only handles the trading accounts. Provider terms change, so confirm current pricing directly.
Effect on your pricing
Processing costs come off every sale, so include them in your contribution per sale. A rolling reserve does not reduce profit, but it delays cash, which matters for a young firm paying its first payouts.
Negotiating later
Rates often improve once you have a few months of processing history with low chargebacks, so revisit terms after your first quarter.
PropExecutor team · Updated