BNPLMargin Studio vs Klarna Local Buyout Arena ⚔️

Because 65%–80% of customers who select Pay-in-4 at checkout would have completed the purchase with a standard credit card (2.9% fee). Paying 5.99% + $0.30 on those cannibalized orders, plus losing the 5.99% fee on returned items, often outweighs the margin from the 20% incremental buyers.

In most standard merchant agreements, the fixed transaction fee ($0.30) and often the full 5.99% merchant discount rate are non-refundable upon customer return—meaning a $150 returned dress costs you $9.29 in permanent payment fees before return shipping.

For a store with a $85 baseline AOV and 60% gross margin, hiding BNPL below $120 prevents fee cannibalization on single-item carts while motivating shoppers to add a second item to unlock Pay-in-4.

0% APR 6-to-12-month plans charge merchants 8.5% to 12.5% MDR. They should only be enabled on carts above $300 with gross margins exceeding 62%; below that, switch to interest-bearing plans where the buyer pays the APR and your merchant fee drops to ~3.5%.

Vendor ROI calculators assume 0% credit card cannibalization and 0% return fee loss to justify their 5.99% fees. BNPLMargin Studio audits your real incremental margin for a $19 one-time buyout.

Never. All BNPL fee audits, cannibalization curves, and CSV exports run 100% locally in your browser RAM.