E-Commerce checkout costs: three hidden expenses cutting into your holiday profits

If you run an online store in Canada, the holiday season is likely your biggest revenue window of the year. This year, every sale carries more weight.

After a decade of double-digit growth, Canada’s e-commerce sales slowed to just 2.8 per cent between 2024 and 2025^[1]. Bank of Canada survey data indicated that U.S. tariffs and inflation left shoppers more cautious about spending^[2] during the same period.

Black Friday, Cyber Monday, Boxing Day and last-minute holiday purchases create enormous opportunities, but they also amplify inefficiencies within the checkout experience. Small issues that go unnoticed during slower periods can become major revenue leaks when transaction volumes spike.

Below are three hidden e-commerce checkout costs and practical ways Konek, a made-in-Canada solution, can help you keep more of every holiday sale. Konek is available to Moneris merchants through Moneris Checkout or the Moneris API.

1. How e-commerce fraud and chargebacks cut into holiday profits

The holiday shopping season brings more customers, more transactions and, unfortunately, more fraud attempts. According to a 2026 LexisNexis study, every $1 of fraud can cost merchants an estimated in $5.32, a 64 per cent increase since 2022^[3].

Chargebacks carry their own costs, with the all-in cost per dispute averaging $110^[4].  What’s more, merchants who fight chargebacks typically only win about 45 per cent of the time^[5].

The challenge during peak shopping periods is balancing security and convenience. While stronger fraud controls can help reduce risk, excessive friction can drive legitimate customers away exactly when you can least afford it.

Konek uses tools like bank-grade authentication, real-time fund verification and an issuer liability shift. These features lower fraud and chargeback exposure while keeping checkout smooth for genuine buyers.

2. Cart abandonment: why online shoppers leave before they buy

At 85 per cent, Canada's average cart abandonment rate is among the highest in the world^[6]. Holiday traffic can dramatically increase the number of shoppers visiting an online store, but increased traffic doesn't automatically translate into sales.

Convenience matters more during the holidays. Consumers are often shopping under tight deadlines and expecting a fast, seamless experience. Any additional step can become a reason to leave.

Payment choice is also a major factor. As more Canadians choose bank-direct payment options, retailers with card-only checkout experiences risk losing holiday sales to competitors offering greater flexibility.

Widening the payment options you offer, so shoppers find a method they trust. Platforms that support bank-direct payments alongside cards, including Konek, give customers more ways to reach the "purchase" button, which may help reduce drop-off at that final step.

3. Processing fees: a hidden cost for online stores

Whether you process a few hundred orders a month or a few thousand, credit card processing fees can be a significant cost to your business. During the holiday season, when transaction volumes surge, interchange costs can quickly become one of the largest expenses associated with online sales.

Adding a lower-cost payment method alongside cards can ease some of that pressure. Pay-by-bank options, for instance, can carry lower transaction costs than standard credit cards and give customers another way to check out.

For online merchants who want to offer pay-by-bank, Konek is the only platform that offers Interac Direct, which is built on financial infrastructure Canadians already know and trust.

Turning your checkout into a competitive advantage

Fraud, chargebacks, abandoned carts and transaction fees may seem like separate challenges. During the holiday shopping season, they compound one another.

Leading retailers now treat payments as more than a back-office function. A modern checkout experience reduces costs, improves conversion rates, increases customer satisfaction and creates a measurable competitive advantage.

As you head into the busiest shopping season of the year, every completed transaction counts. Businesses that make checkout seamless, secure and flexible will be better positioned to maximize holiday revenue and enter the new year with stronger customer relationships and healthier margins.

None of this requires an overhaul. It often starts with a single question: where is your checkout quietly costing you? From there, small changes compound. Tighten fraud controls. Add payment choice. Put a lower-cost option in the mix.

Author Profile

Kris Zanuldin

Head, Konek

Kris Zanuldin is the Head of Konek, leading the development of Canada’s most convenient, secure, and trusted way to pay. At the helm of this new national payment experience, Kris is driving innovation that empowers consumers, merchants, financial institutions, and especially credit unions – strengthening how Canadians pay and get paid in an increasingly digital economy.