Daily Fee Schedule Explainer

An account configured for daily fee discounting will have the processing fees associated with a given batch of transactions calculated and collected as part of the deposit for that batch. Fee discounting is irrespective of the funding method (gross or net) - it simply means fees are collected with each batch deposit rather than continuously accruing for collection at a later time (typically the following month around the time when the fee statement is released).

Daily Fee Discounting Example

Suppose the merchant takes payments totaling $500 on a given date, and the total cost of processing these transactions is $15.40.

For the associated deposit, the merchant will be assessed the total fees of $15.40, regardless of the funding method for which the merchant is configured.

The final resulting amount associated with the batch that will be present in the merchant’s bank account will be:

$500 - $15.40 = $484.60

While daily fee discounting is possible with either Gross or Net funding methods, it is required for sub-merchants configured for Net funding.

Monthly Fee Schedule Explainer

A merchant configured for monthly fee discounting will have the processing fees associated with that month’s transactions will be calculated and accrued for the entire month. The total fees are then debited in the following month in one lump sum. When set up on a Monthly fee schedule, the merchant can only be set up to receive their funds as a Gross deposit since the fees are debited separately in the following month. Net funding will not work with a Monthly fee schedule.

Monthly Fee Discounting Example

Suppose a merchant takes payments totaling $20,000 over the course of a month, and the total cost of processing these transactions is $550.

For that month, the merchant would receive the $20,000 over the course of the month within their normal funding schedule. At the end of the month, the fees are assessed from each transaction and the total of those fees, $550 in this example, will be pulled in at the beginning of the following month.

Generally the fees will come out on the 3rd, if this falls on a weekend, it will get pulled on the following Monday.
Statements will be out on the 6th or 7th, depending on whether the 3rd is a weekend. The reason being, we have to ingest data from our vendor, fees have to be generated then statements are then released accordingly.
Trust and Surcharging fees and statements will be the 8th