In this episode, we take a closer look at Stax, the payments processor that flipped the traditional model on its head. Instead of charging a percentage on every transaction, Stax offers a subscription-based approach where businesses pay a flat monthly fee and get 0% markup on interchange, plus a small per-transaction cost. Alongside this pricing model, merchants gain access to a full suite of tools including invoicing, payment links, hosted checkout, and analytics making it especially attractive for high-volume businesses. So how does Stax generate revenue? Primarily through tiered monthly subscriptions based on processing volume, per-transaction fees, and additional services like ACH processing, chargeback protection, surcharging programs, and hardware solutions. The company has strengthened its position through strategic acquisitions like Payment Depot and CardX, expanding both distribution and compliance capabilities. Its competitive edge lies in transparency and predictability offering merchants a clear cost structure and scalable pricing without hidden percentage fees. By combining software, payments, and compliance into one platform, Stax turns payment processing into a more predictable and cost-efficient experience, building long-term loyalty in the process.
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Welcome back, I'm Scarlet Sieber with Money 2020 and this is how fintech companies actually make money.
Today we're going to be breaking down Stax, the processor that flipped the script.
Membership pricing instead of taking a percentage of every sale.
Talk about a reinvention.
Here's a proposition.
Pay a flat monthly subscription, get 0% markup on interchange and just cents per transaction plus the software suite for invoices, links, hosted checkout, analytics, and more.
For higher volume merchants, that math just hits a bit differently.
So how do stacks actually make money?
Monthly subscriptions, tiered by annual processing volume, commonly published starting at $99 and $139, $199+, etc.
Per transaction fees on top of raw interchange, basically $0.08 card present, $0.15 card not present type fees, and add-ons and services like ACH processing fees, chargeback protection, and terminal protection plans.
Surcharging programs via Cardex by Stax, compliant tools where legal, often sold as a paid add-on. hardware and implementation, terminals and setup for in-person commerce.
So there's a lot of different ways that they can make some money.
Let's do a momentum check.
Stacks membership model is now a mainstream alternative to flat rate processing for established small businesses with publicly listed tiers and transparent cents per transaction pricing.
Strategic moves like acquiring Payment Depot and CardX strengthened distribution and surcharging compliance, a practical moat for businesses managing rising card costs.
So where is their moat exactly?
It's a few things.
It's about price transparency plus compliance plumbing primarily.
If your cost model is built around a fixed subscription and legal-ready surcharging, switching back to opaque percentage markups feels Expensive.
Stax leans into that with tooling, next-day funding options, and an everything-in-one-place platform.
Stacks monetizes predictability.
Predictability for the win.
Charge a membership, keep markup at zero, let merchants scale without surprise percentages, then win loyalty for the extras.
It's Costco, but for card acceptance.
That's the breakdown of Stacks.
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In the meantime, back over to you.