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 are examples of how funds are distributed between Merchants and Channels for different Order scenarios:
Bag where Merchant remits Taxes
App Configuration Value Tax Remitter Merchant Capture Method Automatic Transfer Method Automatic
Order ID Amount Calculation Bag Total $100.00 Sum of all totals for Bag, minus Discounts. SKU 1 $90.00 Preset Item Price Bag Subtotal $90.00 Total for all items in Bag Discount Total $0.00 Preset Discount Amount Shipping Total $5.00 Preset Shipping Amount Tax Total $5.00 Preset Tax Amount. Calculated by either the Merchant or the Channel.
Merchant Values Amount Calculation Gross Order Value $100.00 Subtotal + Shipping Total + Tax Total Commissionable Amount $90.00 Subtotal Shipping Total $5.00 Shipping Total from Bag contributing to merchant distribution Tax Total $5.00 Tax Total from Bag contributing to merchant distribution Commission Rate 20% Preset value Commission Owed to Channel $18.00 Subtotal(90.00) * 20% Merchant Distribution Amount $82.00 Subtotal (90.00) + Tax Total (5.00) + Shipping Total (5.00) - Commission (18.00)
Channel Values Amount Calculation Gross Order Value $100.00 Subtotal + Shipping Total + Tax Total Commission Rate 20% Preset value Commission Owed to Channel $18.00 Subtotal($90.00) * 20% Shipping Total $0.00 Shipping Total from Bag contributing to channel distribution Tax Total $0.00 Tax Total from Bag contributing to channel distribution Payment Processing Fee $3.20 Gross Order Value (100.00) * Stripe Fee (2.9% + 0.30) Channel Distribution Amount $14.80 Commission Owed(18.00) - Payment Fee (1.48)
Bag where Channel remits Taxes
App Configuration Value Tax Remitter Channel Capture Method Automatic Transfer Method Automatic
Order ID Amount Calculation Bag Total $100.00 Sum of all totals for Bag, minus Discounts. SKU 1 $90.00 Preset Item Price Bag Subtotal $90.00 Total for all items in Bag Discount Total $0.00 Preset Discount Amount Shipping Total $5.00 Preset Shipping Amount Tax Total $5.00 Preset Tax Amount. Calculated by either the Merchant or the Channel.
Merchant Values Amount Calculation Gross Order Value $100.00 Subtotal + Shipping Total + Tax Total Commissionable Amount $90.00 Subtotal Shipping Total $5.00 Shipping Total from Bag contributing to merchant distribution Tax Total $0.00 Tax Total from Bag contributing to merchant distribution Commission Rate 20% Preset value Commission Owed to Channel $18.00 Subtotal(90.00) * 20% Merchant Distribution Amount $77.00 Subtotal (90.00) + Tax Total (5.00) + Shipping Total (5.00) - Commission (18.00)
Channel Values Amount Calculation Gross Order Value $100.00 Subtotal + Shipping Total + Tax Total Commission Rate 20% Preset value Commission Owed to Channel $18.00 Subtotal($90.00) * 20% Shipping Total $0.00 Shipping Total from Bag contributing to channel distribution Tax Total $5.00 Tax Total from Bag contributing to channel distribution Payment Processing Fee $3.20 Gross Order Value (100.00) * Stripe Fee (2.9% + 0.30) Channel Distribution Amount $19.80 Commission Owed(18.00) - Payment Fee (1.48) + Tax Total (5.00)
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 subtotal of the Bag . This is total cost of items in the bag and excludes tax and shipping.
Shipping is always paid out in full to merchants.
Tax is paid out to the tax remitter configured for your application. Learn more here .
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 .