Merchant Billing
Merchant billing is the process by which fees are calculated and charged to a merchant based on their payment and account activity within a set billing cycle, such as daily, weekly, or monthly. Billing includes fees for processing payments, account maintenance, and additional charges, as defined by the merchant's pricing.
Fee Collection
A merchant's payout type determines how merchant fees are collected:
- Net payout: Fees are taken directly from the merchant's payout before it is deposited.
- Gross payout: Fees are withdrawn directly from the merchant's bank account. Currently, gross payouts are only available for merchants processing on TSYS.
Billing Frequency
A merchant's billing frequency refers to how often the merchant is billed for fees. Depending on the merchant’s processor and billing owner, some billing frequency options may be unavailable.
| TSYS | PAYSAFE + FLEX BILLING | PAYSAFE | |
|---|---|---|---|
| Daily | ✗ | ✓ | ✓ |
| Weekly | ✗ | ✓ | ✗ |
| Monthly | ✓ | ✓ | ✓ |
TSYS
Monthly billing is the only option for merchants, occurring around the 10th of each month and covering any fees incurred in the previous calendar month.
Paysafe + Flex Billing
Merchants can be set up on daily, weekly, or monthly billing:
- Daily billing is the default for flat-rate pricing
- Weekly billing is the default for interchange++ pricing
The billing day for weekly and monthly billing can be customized and will include any fees incurred since the last billing date.
Paysafe
Daily billing is the default for all merchants. Monthly billing requires Risk team approval; if approved, merchants will be billed on the last day of the month.
Manage billing frequency
Updating the billing frequency through the Dashboard is exclusive to merchants on Flex Billing. For merchants on Processor Billing, please email .
To view and update a merchant's billing frequency in the Dashboard:
- Navigate to Merchant Management > Merchants
- Select the respective merchant
- Select the Processing Details tab
- Locate the Billing & Payout Schedule widget for the desired payment method and click the Edit icon
- Select the desired billing frequency and anchor day, if applicable
- Click the Save Billing and Payout Schedule button
FAQ
Which day of the month are monthly account fees billed?
The monthly account fee is posted to the account on the last day of the month. The specific billing day depends on the merchant's billing schedule.How do I interpret TSYS's monthly statement?
TSYS's merchant statement outlines a merchant’s account activity, fees, and deposits for the statement period.
Quick facts about the merchant statement
- TSYS mails the statement directly to the merchant by the 10th of each month.
- The branding is generic - there is no mention of or the partner.
- TSYS support details are included on the statement. The merchant can reach out to or TSYS for support.
Understanding the merchant statement
The merchant’s monthly statement is divided into several key sections, each designed to provide specific information about the account's activity and charges. Here's what you'll find in the statement:
Plan Summary
The Plan Summary section outlines the specifics of your merchant plan, including the pricing model and any special terms or conditions applicable to your account. This serves as a quick reference to understand the merchant's rates and fees. Key definitions include:
- Base P/I (Per Item): This is the transaction fee charged on top of interchange costs. It's a fixed fee applied to each transaction processed.
- Base Rate: This is the discount rate applied on top of interchange costs. It's expressed as a percentage of each transaction amount.
News For You
This section communicates updates, news, or important information relevant to your account. It may include changes in processing fees, compliance updates, or new features available to you.
Deposits
The Deposits section details the transactions processed during the statement period. It includes the date of each transaction, the amount, and the total sum deposited into the merchant’s account after processing.
Fees
Here, all fees incurred during the statement period are itemized. This includes transaction fees, monthly account fees, and any other charges applied to the merchant’s account.