Payments during Checkout
Fee Structure
Payments during Checkout
Fee Structure
Overview
When using Prism Pay (built on Stripe), Violet automates fund distribution for every order. This includes handling Stripe fees, tax, shipping, and merchant commissions before transferring funds.
How It Works
- The customer is charged the full order amount.
- Violet calculates the exact amounts to be distributed to all parties.
- Violet uses Stripe to transfer funds to merchants.
- Merchants can track payouts via their Stripe Express dashboard.
- The channel’s commission is credited to your Stripe balance, while merchant payouts are deducted.
Stripe Fee Handling
- Stripe charges a standard fee of 2.9% + $0.30 on the total order amount for US-based platforms.
If you’ve connected a non-US Stripe Platform account for orchestration, these fees will be different. Violet dynamically uses the fees charged by your Stripe platform. You can learn more about this here.
- This fee is deducted from the channel’s commission, not the merchant’s payout.
- If the commission is too low (e.g., 0%), the Stripe fee will reduce your available Stripe balance.
Fee Breakdown Example
Below is an example of how funds are distributed for different commission scenarios:
| Scenario | Order with 0% Commission | Order with 20% Commission |
|---|---|---|
| Order Total | $100.00 | $100.00 |
| Bag Total | $100.00 | $100.00 |
| SKU 1 | $90.00 | $90.00 |
| Bag Subtotal | $90.00 | $90.00 |
| Discount Total | $0.00 | $0.00 |
| Shipping Total | $5.00 | $5.00 |
| Tax Total | $5.00 | $5.00 |
| Commission Percentage | 0% | 20% |
| Payment Provider Fee (2.9% + $0.30) | $3.20 | $3.20 |
| Merchant Gross (pre-commission) | $100.00 | $100.00 |
| Merchant Commission on Distribution | $0.00 | $-18.00 |
| Merchant Fee on Distribution | $0.00 | $0.00 |
| Merchant Distribution Amount | $100.00 | $82.00 |
| Channel Commission on Distribution | $0.00 | $18.00 |
| Channel Fee on Distribution | $3.20 | $3.20 |
| Channel Distribution Amount (hypothetical, no actual transfer) | $-3.20 | $14.80 |
Key Takeaways
- Stripe charges a fee of 2.9% + $0.30 on the total order amount (the price the shopper pays).
- If you have a custom Stripe agreement, Violet dynamically adjusts to reflect your rates.
- The channel’s commission is based on the item cost only, excluding tax and shipping.
- Tax and shipping are always paid out in full to merchants.
- For multi-merchant orders, fees are distributed proportionally based on each merchant’s contribution to the total order.
- Since merchants do not pay these fees, this breakdown is only visible in Channel Distributions.
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