Payment Gateway Charge – Enabling this will ensure that the payment gateway cost goes to the vendor apart from the commission value which is set by the rules.
Who Will Bear Gateway Charges – Selecting one of the options will allow you to choose who will bear the payment gateway charges. Now let’s see how the charges will be calculated in each case.
Admin bear the gateway charge #
In this instance, the site owner/administrator is responsible for the fees, which are taken from the administrator’s revenues or commissions.
Take a look at this example –
If a $100 product with a 30% vendor commission and a 10% gateway charge. When a buyer pays $100 for a product, the seller receives the entire sum. So, with a 10% gateway fee, the admin will receive something like [$100-$10], which is $90. A 30 percent commission paid by the seller is taken from this $90. The total money received by the admin will be [$90-$30], or $60.
Vendor bears the gateway charge #
If you choose this option, the fee is taken from the vendor’s commission.
Example B: the price of the product is $100, the vendor’s commission is 30%, and the gateway charge is 10%. In this example, the gateway price will be 10%, which means the admin will earn $90. However, because the vendor will pay the gateway charge, he will earn [30% -10%], which is [$30- $10], leaving just $20 as the seller’s commission and the admin receiving the remaining $70.
Admin and Vendor bear gateway charges separately #
In the final alternative, if both the vendor and the administrator agree to bear the gateway fees separately, the fees for utilizing the gateway are taken from both of them. In this manner, the gateway fees may be paid independently by the suppliers and the administrator. In the event that suppliers and administrators elect to pay for gateway costs individually, we’ve chosen another example to describe the procedure.
Exercising C: The product costs $100, with a 30% vendor commission and a 10% gateway fee. In this scenario, the vendor commission would be $30, and the administrative charge would be [100-30], or $70. Let’s implement the gateway fees individually now.
- The gateway fee, which is taken from the seller commission, is $3 (10% of $30). As a result, the total sum payable to the vendor is $27. (30- 3).
- The gateway cost, which is taken from the admin fees, is $7 (10% of $70). As a result, the total amount that the admin will receive is $63. (70-7)
Gateway charge Type –
As you can see in the figure above, MultiVendorX enables you to calculate the gateway charge in 3 different ways. You can choose the option, that works the best for your marketplace.
Here ends the lesson on commissions. Hopefully, you found the information useful. Feel free to contact our support team if you have any questions.