Accepting payments isn’t just about “what converts”—it’s about what converts profitably. Traditional cards and modern crypto rails both move money, but their Total Cost of Acceptance (TCA) differs across fees, fraud/chargebacks, FX, treasury, and operational overhead. In this guide, we’ll unpack each cost layer, show when crypto payments meaningfully reduce your TCA, and outline a simple modeling approach your finance team can run this week.
The TCA stack for cards
Cards feel familiar—but familiarity can hide costs:
- MDR + scheme fees: Interchange, assessment, and acquirer markups compound quickly, especially for cross-border.
- Chargebacks & fraud: Dispute fees, write-offs, and staff time escalate with scale. Rolling reserves can squeeze cash flow.
- International FX: Cross-border acceptance incurs FX markups and settlement delays.
- Operational overhead: Dispute management, representments, evidence packs, and policy maintenance burn time.
When cards win:
- Audiences with low crypto adoption.
- Heavily regulated categories where card programs offer proven acceptance.
- Low average order value (AOV) where payer convenience trumps fee sensitivity.
The TCA stack for crypto
Crypto rails shift where—and how—you pay:
- Gateway fee: Typically transparent; often lower at scale than MDR.
- Network fee: Variable, but manageable with asset/rail routing (e.g., stablecoins on efficient networks).
- FX/Conversion spread: If you auto-convert to fiat or stablecoin, factor the spread to mid-market.
- No card-style chargebacks: Fewer losses and less staffing on representments.
- Operational savings: Predictable refunds (e.g., stablecoin), automated reconciliation, faster settlement.
When crypto wins:
- Cross-border sales where card FX and scheme fees erode margin.
- Chargeback-prone verticals and marketplaces seeking to minimize dispute complexity.
- B2B/B2C with larger AOVs where fee deltas are material and buyers accept crypto/stablecoins.
Modeling TCA in 30 minutes
Create a simple spreadsheet with your current payment mix and target scenarios:
- Inputs: AOV, volume/month, geo mix, % crypto vs card, expected chargeback rate, card MDR, crypto gateway fee, network fee per txn, FX spread.
- Outputs: Effective fee %, gross margin impact, cash conversion cycle (settlement time), dispute cost per order, refund handling cost.
- Sensitivity: Vary AOV and cross-border % to see breakeven points.
Pro tip: If you sell globally, run two crypto scenarios—(a) stablecoin-first (USDC) and (b) BTC/ETH with fixed-rate quotes. The stablecoin scenario often shows the largest TCA improvement due to predictable value and lower network costs.
Hidden costs to surface (both rails)
- Support load: Under/over-payments in crypto vs failed card authorizations—what’s the real contact rate?
- Refund throughput: Time, error rate, auditability.
- Accounting/reconciliation: Export quality, ERP mapping, and month-end close time.
- Vendor lock-in: Is fee routing/asset choice flexible enough to keep pricing pressure on your providers?
Conversion: the other half of TCA
Cost per order must be balanced with conversion rate:
- Crypto adds incremental lift where buyers are crypto-native or card declines are high.
- Display fixed quotes and a clean countdown to reduce “expired price” friction.
- Offer stablecoin as default with BTC/ETH optional to satisfy preference without sacrificing predictability.
Refunds and disputes without chargebacks
Crypto doesn’t do card chargebacks, but you can design customer-friendly refunds:
- Stablecoin refunds to verified wallets, partial refunds by line item, and audit trails linking order → tx hash → refund hash.
- Friendly dispute policies (e.g., return window, warranty) keep CX strong while cutting chargeback costs.
Marketplace and platform considerations
- Split settlements: Route buyer funds to multiple sub-merchants with clear ledgers.
- KYC/KYT: Tiered onboarding and wallet screening.
- Escrow/holds: Release logic that’s transparent and auditable.
A simple decision framework
- AOV < €30, domestic, non-crypto audience: Cards likely dominate.
- AOV €30–€500, mixed geo, moderate crypto adoption: Offer both; nudge stablecoin for cross-border.
- AOV > €500 or global B2B/marketplace: Crypto (stablecoin-first) often drives lower TCA and faster settlement.
FAQs
Do we pass network fees to buyers?
Some merchants do; many absorb for smoother UX. Test both.
What about volatility?
Use fixed-rate quotes with short windows and auto-convert to stablecoin or fiat.
Is there fraud in crypto?
Yes, but it’s different. Use KYT/wallet screening and refund verification instead of chargeback workflows.
