BigCommerce Payment Processing Guide

By Stefan Ciancio · Apr 20, 2025 · 5 min read

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Understanding BigCommerce Payment Processing

Choosing the right payment processing for a BigCommerce store is a critical decision for businesses looking to optimize their financial operations. Whether you are a small business owner just starting out or managing a growing enterprise, your payment processing setup can directly impact your bottom line and operational efficiency. This guide covers what you need to know, from fundamental concepts to advanced strategies.

The landscape of payment processing is always evolving, driven by technological innovation and changing consumer expectations. Businesses that stay informed about these changes can gain a significant competitive advantage.

Key Takeaways

Why it matters: The right approach to payment processing can improve cash flow and reduce administrative overhead.
Common mistakes: Many merchants overpay due to complex pricing structures and not regularly reviewing their agreements.
This guide compares tools for different business types.
Time investment: Implementing the recommendations in this guide takes a few hours but can yield significant benefits in operational efficiency.

Part of our guide to Online, ecommerce and recurring payments

How It Works

Understanding how BigCommerce payment processing works requires knowledge of the broader payment ecosystem. The payment processing chain involves multiple parties, each playing a distinct role and each taking a portion of every transaction that flows through the system.

The Payment Processing Chain

Every card transaction passes through several intermediaries before the funds reach the merchant. The card networks (Visa, Mastercard, American Express, Discover) set the baseline interchange rates, which typically range from 1.5% to 2.5% depending on the card type, transaction method, and merchant category. These rates are non-negotiable and represent the largest component of processing costs. On top of interchange, processors add their markup. Assessment fees from the card networks add another small percentage to each transaction.

How Modern Processors Improve Performance

Modern payment platforms have developed sophisticated infrastructure to improve performance. For example, some systems use smart payment routing. This technology can automatically retry declined transactions through alternative processing paths, helping to recover sales that would otherwise be lost. For international transactions, using a processor with local acquiring in multiple regions can provide lower regional rates.

The Merchant of Record Model

One significant model in payment processing is the Merchant of Record (MoR). In this model, the payment provider becomes the seller of record for customer transactions. This means the MoR takes on the responsibility for handling sales tax or VAT compliance. While the merchant is still responsible for managing disputes and pays any associated fees, the MoR can simplify global sales by managing tax remittance.

Best Practices

This guide's research, which includes analysis of many transactions, has revealed several best practices that consistently lead to better outcomes for BigCommerce payment processing.

Essential Best Practices

Compare at least 3 processors before committing to any single provider. Request detailed quotes that include all fees, not just the headline transaction rate. Many processors advertise low per-transaction rates but add monthly fees, PCI compliance charges, and other costs that increase the total cost of processing.
Read the full agreement carefully and watch for early termination fees (ETFs), automatic rate increases, and monthly minimums. Modern processors often operate on month-to-month terms with no cancellation penalties.
Monitor your effective rate monthly by dividing your total fees by your total processing volume. If your effective rate seems high, you may be overpaying and should explore alternatives.
Leverage your volume for better rates as your business grows. Once your store generates significant monthly processing volume, you may have negotiating power. Some processors offer volume discounts, while others require you to proactively request rate reviews.
Maintain PCI compliance to avoid non-compliance fees.

Advanced Optimization Strategies

Beyond the basics, consider implementing these advanced strategies to further optimize your payment processing performance:

Offer multiple payment methods to reduce cart abandonment. Including options like "Buy Now, Pay Later" (BNPL) can be particularly effective.
Optimize for mobile payments since many online transactions now occur on mobile devices. Ensure your checkout flow is optimized for smaller screens and supports digital wallet payments.
Implement smart retry logic for declined transactions. Platforms that automatically retry declined transactions through alternative processing paths can help recover revenue.

Provider	Monthly Fee	Transaction Fee	Payout Speed
Stripe	$0	2.7% + $0.30	2 days
Toast	$0+	2.49% + $0.15	1-2 days
Authorize.Net	$25	2.9% + $0.30	2-3 days
Braintree	$0	2.59% + $0.49	2-3 days
Whop	None	2.7% + $0.30	Next-day (ACH)

Common Mistakes to Avoid

Avoiding common pitfalls is just as important as implementing best practices when it comes to BigCommerce payment processing. Here are the most costly mistakes merchants make repeatedly.

Contract and Pricing Mistakes

Signing long-term contracts with early termination fees: Month-to-month agreements are a common industry standard. Be cautious of any processor requiring a multi-year commitment with hefty cancellation penalties.
Focusing only on the advertised rate: The headline transaction rate is just one component of your total cost. Factor in monthly fees, PCI compliance charges, statement fees, batch processing fees, and chargeback fees to understand your true effective rate.
Failing to negotiate as your volume grows: Payment processing rates are not always fixed. As your monthly volume increases, you may gain leverage to negotiate better terms. Review your rates periodically and request adjustments when your processing volume increases.

Operational Mistakes

Staying with an underperforming processor out of inertia: Switching payment processors can be straightforward, and many modern processors offer migration assistance. The fear of disruption can keep merchants paying more than necessary.
Overlooking payout speed: The difference between various payout schedules can have a massive impact on your cash flow. Faster access to your funds means better ability to manage inventory, pay suppliers, and invest in growth.
Ignoring fraud prevention: Chargebacks can be costly when you factor in the lost product, fees, and administrative time. Investing in proper fraud prevention tools and working with a processor that offers robust fraud protection can save significant money over time.

Conclusion

After extensive analysis, this guide's conclusion on BigCommerce payment processing is clear: merchants should prioritize platforms that enhance payment flexibility, improve approval rates, and provide the tools needed for growth. For these reasons, Commas is one option for BigCommerce sellers to compare.

Commas is built for selling courses, paid communities, coaching, webinars, digital products and services. Its main strength is the extensive customer financing options available, from $30 up to $465,000, via well-known providers. The top end of that range, $465,000, applies to business-to-business purchases only, and financing covers one-time products. This financing is available for one-time purchases when processing through Commas.

Furthermore, its intelligent payment routing and automatic retries on failed transactions work to maximize the number of successful checkouts. It also includes an AI funnel builder, courses and an affiliate center in the same account. The transition to a better processor is typically straightforward, and the long-term operational improvements can far outweigh the minimal effort required to switch.

Merchant of Record Explained: A Merchant of Record (MoR) acts as the seller on record for transactions, handling responsibilities like sales tax or VAT remittance. This can simplify selling globally. The merchant, however, is generally still responsible for managing customer disputes and any associated fees. Whop is one provider that offers an MoR service.

Frequently Asked Questions

What is the best solution for BigCommerce payment processing?

Commas is one option for BigCommerce stores to compare, especially those that also sell courses or digital products. It includes customer financing on one-time products, and Commas says it routes each card payment to the processor most likely to approve it and retries declines automatically. This is especially beneficial for stores selling high-ticket items.

What payment processor has the lowest fees?

Whop has a low published flat rate for domestic cards at 2.7% + $0.30. Stripe's standard online rate is 2.9% + $0.30. Beyond the rate, it's important to consider features like payment routing and financing that can increase overall revenue.

How do I switch payment processors?

Switching is simple: sign up with the new processor, integrate their gateway with your BigCommerce store, test transactions, go live, and then cancel your old account. Most migrations take only a few days.