---
title: Payment Gateway Charge
description: "Managing payment gateway charges correctly is essential for running a profitable marketplace. In MultiVendorX 5.0, this system is redesigned to match **how transactions actually work in real life**, while ensuring your earnings stay protected. --- ## Why this feature exists…"
url: "https://multivendorx.com/docs/knowledgebase/payment-gateway-charge/"
updated: "2026-04-21"
category: Commission Management
---

# Payment Gateway Charge

Managing payment gateway charges correctly is essential for running a profitable marketplace. In MultiVendorX 5.0, this system is redesigned to match **how transactions actually work in real life**, while ensuring your earnings stay protected.

---

## Why this feature exists

In a real transaction:

- The **customer pays the full order amount**
- The **payment gateway (Stripe, PayPal, etc.) deducts its fee instantly**
- The **admin receives the remaining amount**

👉 This means the admin always **pays the gateway fee upfront**, even before commissions are calculated.

---

## The problem without this system

Let’s say:

- Order value = $100
- Store commission = 70% → $70
- Admin commission = 30% → $30
- Gateway fee = $10

### What actually happens:

- Admin receives → $90 (after gateway deduction)
- Store is paid → $70
- Admin keeps → $20

👉 But admin was supposed to earn $30
👉 So admin **loses $10 due to gateway charges**

This loss also includes the portion that belongs to the store’s share.

---

## How MultiVendorX 5.0 solves this

MultiVendorX ensures that:

👉 **Gateway fees are recovered from the store’s commission**

So instead of the admin absorbing the full transaction cost, the system **balances the deduction during commission distribution**, keeping your earnings intact.

---

## Gateway Fees Settings

This setting allows you to recover the transaction costs charged by your payment provider.

👉 These fees are **deducted from the store’s commission**, so your marketplace earnings remain unaffected.

---

### Default

This acts as a fallback fee when no specific payment method rule is applied.

Example:

- ₹ + 10%

---

### Payment method–specific fees (Dynamic)

Below the default setting, you’ll see a list of payment methods where you can define separate fees.

👉 **These payment methods are dynamically pulled from your WooCommerce settings:**

**WooCommerce → Settings → Payments**

This means:

- Only **enabled payment methods** will appear here
- If you enable a new payment method, it will automatically show up
- If you disable one, it will be removed from the list

---

### Example (based on enabled methods)

If your WooCommerce setup has these active:

- PayPal Marketplace → ₹ + 1%
- Stripe Marketplace → ₹ + 2%
- Direct bank transfer → ₹ + 5%

👉 If you later enable another payment method (like Cash on Delivery), it will **automatically appear here for configuration**.

---

## How the calculation works

Let’s take a practical example:

- Total order price = $100
- Marketplace commission = 20% → $20
- Gateway fee = $10 + 5%

### Step-by-step flow:

1. Customer pays → $100
2. Gateway deducts fee → $15
3. Admin receives → $85

Now MultiVendorX adjusts the distribution:

- Marketplace commission → $20
- Gateway fee recovery → $15

👉 Total marketplace earning = $35
👉 Store receives = $65

---

## What’s happening behind the scenes

- Admin pays the gateway fee upfront (automatically deducted)
- The system calculates the actual transaction cost
- That cost is deducted from the store’s commission
- Admin recovers the amount and keeps their intended earning

---

## Why this approach is important

- Prevents admin from losing money on transactions
- Ensures fair cost sharing between admin and store
- Supports multiple payment methods with different fees
- Keeps earnings accurate and predictable

---

## In one line

👉 The admin pays the gateway fee first, and MultiVendorX ensures it is **fairly recovered from the store’s commission**, while payment methods and their fees stay dynamically synced with WooCommerce.