Why Does Sonder Payments Charge a Monthly Membership Fee?
June 10th, 2019

Sonder Payments’ unique membership model isn’t the norm in the payment processing industry, so we get this kind of question a lot: “I didn’t pay a monthly fee with my previous processor. Why are you charging me one?”

The answer is pretty simple: we charge a monthly fee rather than charging a per-transaction percentage. By eliminating percentages from our pricing structure, we ensure that every Sonder Payments member can know what they’ll pay in processing fees each month. No more surprises.

Pricing in the Processing Industry

If you’re familiar with the payment processing industry, you probably understand pricing structures and processing rates pretty well. If not, take a look at this article: How Is Payment Processing Priced?

Basically, traditional processors charge a markup on top of interchange fees, which are the cost of completing a transaction (as set by card networks and issuing banks). As part of that markup, many processors have taken to charging a percentage out of each transaction. It makes sense in the context of other processing fees — after all, interchange fees are based on percentages. But when you think about it, does the size of a transaction really mean much to a processor? Isn’t the work they do exactly the same, regardless of the transaction size? So why should it cost you so much more?

For many businesses, those small percentages can have massive consequences on the bottom line. That’s what we set out to fix.

Enter Sonder Payments

After working in the industry for a number of years, we recognized that businesses with larger average tickets were suffering at the hands of percentage markups. Paying 0.5% per transaction on a cup of coffee is only a few pennies. Paying 0.5% on a multi-month agency contract or luxury good is too many pennies.

So, rather than charge that percentage per transaction, we started a membership-based processor. Sonder Payments members pay a flat monthly rate, plus a static per-transaction amount. So, whether you’re swiping a card for $5.00 or $5,000.00, your processor fees won’t change.

Membership Tiers

Sonder Payments Membership is currently available in two tiers:

For businesses who process more than $1 million per month in credit card transactions, special enterprise pricing is available.

Both Sonder and Sonder Plus memberships offer the same great processing service for your business. Neither will sneak in percentage markups, so you’ll know exactly what to expect when your monthly statement comes in.

In conclusion, yes, we charge a monthly membership fee. No, it’s not just a money-grabbing technique. We charge our monthly fee to bring stability to your monthly processing statements and remove the percentage markup that’s so prevalent in our industry.

If you’d like to learn more about Sonder Payments membership, contact us by sending an email to info@sonderpayments.com or calling 844-575-3216.