Payment Processing Markup

Andrew shares how he discovered a simple revenue boost by adding payment processing markup to an invoicing software product. The key insight is finding easy ways to generate additional revenue from existing payment flows.

Key Points:

• Core Example:

  • Had invoicing software called Ballpark doing $100M in payment volume
  • Added markup on credit card processing for invoice payments
  • Generated hundreds of thousands in additional revenue
  • Only took 10 minutes to implement through Stripe settings

• Key Characteristics:

  • No additional work required after setup
  • Leverages existing payment flows
  • Customers already comfortable paying processing fees
  • Pure profit from simple configuration change

• Implementation:

  • Example: Customer sends $10 invoice
  • Add small markup on credit card payment option
  • Process payments through existing provider (Stripe)
  • Collect markup as additional revenue

• Results:

  • Significant revenue increase
  • No impact on core product experience
  • Passive income stream
  • High margins since no ongoing costs

This represents a "lever pull" - a simple change that creates meaningful profit increase without requiring significant effort or changing the core business.