Concepts
Fees
The fees a protected payment carries, fixed when the payment is created.
| Fee | Rate | Applies to |
|---|---|---|
| Buyer protection fee | 1.5% | Paid by the buyer on top of the amount when the payment is created. |
| Merchant settlement fee | 2.7% | Of the funds settled to the recipient, taken at settlement. |
- There is no merchant settlement fee on refunded principal.
- The buyer protection fee is not refunded: protection began when the payment was created.
- Each fee is calculated in the payment’s asset, in its smallest unit, with integer arithmetic:
fee = floor((amount × rate_bps + 5000) / 10000), where the buyer protection fee is 150 bps and the merchant settlement fee 270 bps. This is the exact fee rounded to the nearest unit, with exact halves rounding up. Rates are fixed when the payment is created. - An intent’s
amountis the principal. For a 1,000.00 intent the buyer pays 1,015.00; on release the recipient receives 973.00, and on refund the buyer gets 1,000.00 back.