Total cost of ownership (TCO)

Also called TCO, all-in cost, effective rate

Everything a studio pays to sell direct, including processing, FX, disputes, tax compliance, fraud tools, payout fees, reserves and staff time, expressed as a share of player spend.

The headline rate is rarely the cost. A “5%” quote can mean 5% of gross sales, 5% on top of payment processing, or 5% of what is left after channel fees, FX and tax. Xsolla’s PSP product is “5% + payment system fee”, and Stash’s 2024 example charged 5% on net revenue after those deductions.

Stripe’s merchant of record product, Managed Payments, charges 3.5% “in addition to Payments fees” as of September 2026, so 6.4% + 30¢ on a US domestic card, calculated on the tax-inclusive amount (Stripe). Neon, an MoR, writes on its blog that a 5% quote often ends up at “8–20% or higher” (Neon). Fixed fees dominate small purchases: 2.9% + 30¢ is 33% of a $0.99 sale.

For a PSP setup, TCO also has to include what a merchant of record would otherwise carry: tax engine and filing fees, fraud screening, dispute fees and losses, PCI work and the people who run it. Compare the options on your own price points and card mix in the TCO calculator.