In this section, we delve into payouts and the associated processes involved.
Gross and Net Settlement
We offer the flexibility of both gross and net settlement or payout types.
With net settlement, commissions are deducted from the payout after the transaction is loaded into the system. This deduction occurs during the next payout execution, which is usually the day after the transaction takes place.
On the other hand, with gross settlement, commissions are deducted from the payout on the 10th day of the month after the invoice to which they pertain. If the designated date falls on a non-working day, the deduction will occur on the next working day.
If a merchant switches from gross to net mode or vice versa, the change will only be effective on the first day of the following month. This is because the commissions amount in the net mode would have already been deducted from the daily payouts.
Payouts are processed on a daily basis, encompassing all transactions created in the system between 00:10:00 UTC of the previous day and 00:10:00 UTC on the same day.
In situations where the payout amount is insufficient to cover the charge to be paid (such as cancellations, refunds, or rerates), subsequent payouts will be utilized until the charge is fully paid. This applies to both net and gross.
For transactions involving cancellations prior to being sent to the merchant, they will not be considered in the payout process. However, if cancellations occur after the money is sent to the merchant, the corresponding amount will be deducted from the subsequent payout.
For example, if the price is incorrect and a change is made, we initiate the rerate process to correct the value. Rerated transactions that occur on the same day or before the transaction amount is transferred to the merchant will not be included in the payout calculation for the original event. However, any differences resulting from rerated transactions after the transfer will be adjusted, either adding or reducing the amount from the merchant’s payout.
Type of commissions
Merchants have the option to choose between Merchant Service Charge (MSC) and IF++.
For MSC type of commission, the amount paid to the merchant is calculated by subtracting the MSC commission from the transaction amount.
For IF++, the paid amount deducts the interchange and processing fees and the commission from the total transaction values for the day under analysis.
Cashback and Dynamic Currency Conversion amounts are not considered in the payout process.
The payout currency aligns with the customer’s currency or the Payment Facilitator’s currency in such scenarios.
Billing and Invoicing
The billing and invoicing processes within the system are handled as distinct operations.
The billing process involves closing the bill cycle by collecting charges, applying discounts, performing VAT calculations, and consolidating all charges into one bill for a specific billing period and account. A billing period is defined by the 1st day of the month, which sets the start and end dates for the billing period.
On the other hand, the invoicing process focuses on compiling charges into invoice items, representing sets of events.
Each transaction received is considered an event, and these events are aggregated into items based on predefined rules configured in the system’s product catalog.
Items are created per service and per billing cycle, with subsequent events mapped to the same item.
Monthly invoices only include charges for the current billing period and do not carry unpaid charges from previous invoices.