Platform Fees
Platform fees are payment processing fees applied to transactions handled through the platform.
These fees are deducted from the total gross figure of the sale.
The fees are typically determined by several factors, including:
Card type (e.g. debit or credit)
Card brand (e.g. Visa, Mastercard, American Express)
Country of origin of the card
The total cost of processing payments may differ depending on the factors mentioned above.
Platform Pricing Models
Different platforms may apply different pricing strategies for their customers.
Common approaches include:
Standard pricing:
All sub-merchants are charged the same processing rates.This simplifies pricing management and ensures consistent costs across the platform.
Custom or variable pricing:
Individual sub-merchants may have different pricing structures. Pricing may vary.
Stripe Platform Pricing Tool
The Stripe platform pricing tool allows platforms to configure pricing schemes that determine how payment processing fees are applied.
Within this tool, platforms can:
Create pricing schemes
Define a set of rules that determine when pricing applies
Assign pricing schemes to specific connected accounts
These set of rules determine the cost of processing payments for each connected account based on factors like card type, card brand, or payment region.
Adyen Split Configuration
The Adyen split configuration feature allows platforms to define how transaction funds are divided between parties involved in a payment.
Settlement Timelines
A settlement timeline refers to the amount of time taken between a card payment taken from a customer to when the funds are paid out to the sub-merchant.
Settlement timelines are usually expressed in the format T + X.
T = the day the transaction occurs
X = the number of business days before payout
For example: When a payment from the customer is taken on Monday and it is paid out to the sub-merchant on Thursday, this is a T+3 settlement timeline.
It is the business days in-between that are counted when calculating settlement timelines.
Weekend Payout Delays
Payout processing typically does not occur on weekends. Payments taken over the weekend are processed on the next business day which is when the settlement timeline begins. Transactions taken towards the end of the week have slightly delayed payouts.
For example: when a payment is taken on Friday, the value taken would normally be included in Wednesday's payout (T+3 business days).
Here is an example of when a sub-merchant can expect their payouts if using the T + 3 settlement timeline.
Payment Day | Expected Payout Day |
Monday | Thursday |
Tuesday | Friday |
Wednesday | Monday |
Thursday | Tuesday |
Friday | Wednesday |
Saturday | Wednesday |
Sunday | Wednesday |