One-time fee, charged by Payment service provider (PSP) for opening a merchant account (assignment of Merchant ID), which will take into account all funds received in favor of Merchant before their transfer to his current bank account. As a rule, this payment is transferred prior to start of operations to the account of Payment service provider.
Periodic service fee
Recurrent (monthly or annual) payment for merchant account services. As a rule, this payment is deducted recurrently, as indicated in the Pricing plan, from the amounts of payments received in favor of the Merchant.
Merchant Discount Rate (MDR)
Percentage of a transaction amount, charged as a PSP remuneration. It is deducted from the amounts of payments received in favor of Merchant, prior to transferring to his bank account.
Fixed fee for 1 transaction
Fixed amount, charged at any transaction as a remuneration of the Payment Service Provider in addition to MDR. It is deducted from the amounts of payments received in favor of Merchant, prior to transferring to his bank account.
– a frequency of transferring funds accepted in favor of the merchant to his bank account (Settlement period);
– a delay period between payment acceptance and transferring funds to merchant’s bank account (could be longer than Settlement period)
– Settlement fee – PSP’s remuneration, charged as a compensation of his expenses for transferring payments to Merchant’s bank account. Settlement fee is deducted from the amounts of payments received in favor of the Merchant, prior to transferring to his bank account.
– a minimum amount of funds transfer – if during the Settlement period a smaller amount was received in favor of Merchant, this amount is hold on by the Payment Service Provider until the next Settlement period.
Rolling-reserve (Reserved Funds)
The percentage of payments amount, hold on by Payment Services Provider during the period, indicated by a Pricing plan, after which they are transferred to the Merchant’s bank account, unless such amounts were not used to cover chargebacks. Rolling-reserve is used by the PSP to cover expenses on possible chargebacks.
A fine, deducted by PSP for chargebacks. Chargeback is a reverse of money transfer to a payer’s bank account over his claim to issuing bank that he never initiated the payment. As a rule, Chargeback fee is deducted from the amount of payments, received in favor of the Merchant, before transferring to his bank account.