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 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 pre-calculated 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.
Statement Billing Statuses
As part of our month-end billing project or statement billing, there are multiple status options that a statement life cycle can have. Some of these statuses are adjusted through automation, while others need to be manually updated.
A statement is used to determine the total amount owed by a certain entity during a specified timeframe. Typically, this time period is one month, but it can also be daily, weekly, or annually. Every statement starts off with a status of Pending, cycles through to Processing, and finally to Paid. Below is a table of all the possible statement statuses:
Statement Status | Explanation | Associated Disbursement Status |
Pending | Payment is pending. This is the starting status of every statement. | Returned: If an associated disbursement has a status of Returned, the statement can revert to Pending. |
Processing | Payment has been initiated, but not confirmed. | Processing: The disbursement updates to Processing. |
Paid | Statement has been fully paid. | Processed: The disbursement updates to Processed, and the total matches the amount of the statement. |
Partially paid | Statement has been partially paid. | Processed: The disbursement updates to Processed, and the total is less than the amount of the statement. |
Cancelled | Statement has been cancelled. For example, the client already paid by other means, or their responsibility to pay has been waived. | Not applicable. This status does not receive an update from the disbursement. |
Partially cancelled | Statement has been partially cancelled. For example, the client has partially paid by other means, and the remainder has been waived. | Not applicable. This status does not receive an update from the disbursement. |
To understand how the statuses can be automatically updated, it is important to understand how an entity can pay for a statement. The standard process to pay for a statement is by using the disbursement process, where a debit payout schedule is set up to collect the total amount of the statement on a recurring basis.
The following table lists each disbursement status and how it impacts the statement status:
Disbursement Status | Explanation | Impact to Statement Status |
|---|---|---|
Requested | The disbursement has been requested and will be processed on the next business day. | No impact or change |
Processing | The disbursement request has been processed. | Status changes to Processing |
Processed | The disbursement has been fully processed. | Status changes to Paid or Partially paid |
Failed | The disbursement requested failed locally. | No change, status remains Pending |
Denied | The disbursement request was denied by the processor. | No change, status remains Pending |
Returned | The disbursement was returned or rejected by the issuing bank. | Status changes to Pending or Partially paid |
Billing Schedules
Billing schedules let partners distinguish between fees that merchants pay directly and those automatically deducted from disbursements. By defining the charges in advance, you can generate a statement that becomes payable after a specified period. Billing schedules also allow fees to be withdrawn directly from a merchant’s account balance.
Using a recurring statement billing instead of per‑transaction fees can simplify monthly reconciliation. Each fee is recorded as an individual statement entry and then grouped by fee type into a single consolidated bill. To avoid legal issues, make sure your platform’s billing costs are clearly described in your terms of service.
Important!
Do not create or apply surcharges, as legal complications can occur. Visa and Mastercard specifically prohibit the application of surcharges to cardholders on their respective card brand networks.
For information on setting up statement billing schedules, view Set Up Billing Schedules.
Profit Sharing
Profit Sharing is a feature of the Payrix Pro platform that allows multiple entities to split income, expenses, or both. This flexible feature allows partners and merchants to optimize their profit-sharing strategies for mutual growth and success.
Profit Sharing can be used to designate a percentage of split for income, expenses, or both, and can be assigned to merchants individually or to multiple merchants enrolled in a Group. We recommend that you create a profit share for a group for ease of access. However, you can also set up a new profit share with a single merchant.
If a transaction is associated with a profit share, a new entry is created that splits the amount based on the profit share parameters. For example, if a merchant performs a transaction that generates income, you can set a profit share that distributes a portion of that income to another entity.
For information on setting up profit sharing, view Set Up Profit Sharing.