If you are using Violet Payments, which is built on Stripe, Violet takes care of wiring all the funds to respective parties involved in an order. Violet takes into account Stripe fees, tax, shipping and the commission rate associated with any merchants involved before transferring any funds. Violet then charges the customer the full amount, calculates what needs to be sent to each party and uses Stripe to transfer the final amount. This is all automated. Both you and the merchant can visit your own Stripe Express dashboards where you can see the total amounts being transferred to you after each transaction.

Stripe fees are deducted from the Channel’s commission, not the Merchant’s payout, if the commission rate for the Channel is high enough to cover fees. If commission rate is not high enough (e.g. set to 0%), the merchant pays Stripe transaction fees.

Some important callouts:

  1. Stripe has a fixed fee of 2.9% + 30c charged for the total amount that the shopper pays (the order total).
  2. The channel’s commission is calculated on the cost of the item and does not include tax or shipping, which is paid by the merchant (the order sub-total).
  3. If there is a multi-merchant order and channel commission does not cover Stripe fees, the fixed portion (30 cents) is distributed among the merchants. The 2.9% is calculated on a per merchant basis based on volume of order.