The Payrix Pro platform offers two different billing structures for managing fees:
Net Billing: Fees are deducted from the transaction amount before being deposited into the Merchant’s account balance.
Statement Billing: The full transaction amount is deposited into the Merchant’s bank account. Fees are deducted after a set time frame (daily or monthly) from the Merchant’s account balance.
Tip
No single fee or billing structure is best for every partner. You should base your fee structures in a way that supports your specific business model.
Review the following descriptions and examples of Net Billing and Statement Billing for a clear understanding of how these billing configurations apply in a real-world scenario.
Net Billing
Net Billing subtracts fees from the account balance before the transaction funds are deposited to the Merchant’s bank account. Net Billing uses the Fees page and mechanism to generate Entries displaying the precalculated transaction amount with fees deducted.
Example of Net Billing:
If a Merchant accumulates $100 in sales and $5 in fees in a day, the Merchant receives a deposit of $95 in their account balance when the funds settle.
Statement Billing
Statement Billing, also known as Gross Billing, collects fees and debits them directly from the Merchant’s bank account. Statement Billing uses the Billing page and mechanism to generate Statement Entries, where each transaction and fee are separate entries. A Statement Bill, or Statement, is the combined total of all Statement Entries for the time frame.
Example of Daily Statement Billing:
If a Merchant accumulates $100 in sales and $5 in fees in a day, the Merchant receives a deposit of $100 in their account balance when the funds settle.
At the end of the day, the $5 in fees will be debited directly from the Merchant bank account.