What is a Basis Point?

A basis point (BP) is a unit of measurement used to express percentages, particularly when discussing payment processing rates and fees. One basis point equals a hundredth of one percent

Examples:

1 basis point = 0.01% = 0.001

50 basis points = 0.05% = 0.005

100 basis points = 1% = 0.01

2,000 basis points = 20% = 0.2