Transaction Processing Fees Strategy

Overview

This section of the API documentation provides developers with information on how transaction processing fees are applied within Payiano system. Our system offers flexibility in fee allocation, allowing the allocation of these fees to be dynamically set according to specific strategies. This document outlines the available strategies to apply these fees during transaction processing.

Understanding and implementing these strategies correctly ensures a transparent and flexible fee management process. To accommodate diverse business needs and payment scenarios, Payiano system provides couple of distinct strategies for fee allocation. These strategies determine how transaction processing fees are distributed between the payer and the payee during a transaction.

Strategies

Let's delve into examples with specific numbers based on a checkout amount of $1,000, illustrating how transaction processing fees are applied according to each of the strategies. Assume for simplicity that the transaction processing fee is 2% of the transaction amount. Then the processing fee: $20.

Strategy	Description	Use Case	Example
DEFAULT	This strategy applies the transaction fees based on the payment method chosen by the payer during the checkout process. Specifically, the system looks at the apply_fees_on_payer attribute of the selected payment method to decide whether the payer or the payee should bear the fees. Consider a scenario where a customer chooses to pay with a credit card that has the apply_fees_on_payer attribute set to true. In this case, the customer (payer) will bear the transaction processing fees. Conversely, if the apply_fees_on_payer attribute is set to false, the fees would be borne by the merchant (payee).	Ideal for businesses that want to dynamically adjust who bears the fee based on the chosen payment method, providing flexibility to customers.	1. If the apply_fees_on_payer attribute set to true: Total Paid by Customer: $1,020 Received by Merchant: $1,000 2. If the apply_fees_on_payer attribute set to false: Total Paid by Customer: $1,000 Received by Merchant: $980
PAYEE	Fees are directly applied to the payee, regardless of the payment method used by the payer. This means that the merchant or service provider will bear the cost of the transaction processing fees.	Suitable for merchants who prefer to absorb transaction processing fees to offer a smoother, potentially more competitive checkout experience for customers.	Total Paid by Customer: $1,000 Received by Merchant: $980
PAYER	Fees are charged to the payer, making the customer fully responsible for the transaction processing fees over and above the purchase amount.	Useful for situations where businesses wish to pass on all transaction processing costs to the customer, often applied in industries where this practice is standa	Total Paid by Customer: $1,020 Received by Merchant: $1,000

Strategy

Description

Use Case

Example

DEFAULT

This strategy applies the transaction fees based on the payment method chosen by the payer during the checkout process. Specifically, the system looks at the apply_fees_on_payer attribute of the selected payment method to decide whether the payer or the payee should bear the fees.

Consider a scenario where a customer chooses to pay with a credit card that has the apply_fees_on_payer attribute set to true. In this case, the customer (payer) will bear the transaction processing fees. Conversely, if the apply_fees_on_payer attribute is set to false, the fees would be borne by the merchant (payee).

Ideal for businesses that want to dynamically adjust who bears the fee based on the chosen payment method, providing flexibility to customers.

1. If the apply_fees_on_payer attribute set to true:

Total Paid by Customer: $1,020

Received by Merchant: $1,000

2. If the apply_fees_on_payer attribute set to false:

Total Paid by Customer: $1,000

Received by Merchant: $980

PAYEE

Fees are directly applied to the payee, regardless of the payment method used by the payer. This means that the merchant or service provider will bear the cost of the transaction processing fees.

Suitable for merchants who prefer to absorb transaction processing fees to offer a smoother, potentially more competitive checkout experience for customers.

Total Paid by Customer: $1,000

Received by Merchant: $980

PAYER

Fees are charged to the payer, making the customer fully responsible for the transaction processing fees over and above the purchase amount.

Useful for situations where businesses wish to pass on all transaction processing costs to the customer, often applied in industries where this practice is standa

Total Paid by Customer: $1,020

Received by Merchant: $1,000