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FAQ: Enterprise royalties and fees calculation
FAQ: Enterprise royalties and fees calculation
Updated over a week ago

Below is a list of frequently asked questions about how Enterprise royalties and fees are calculated in WellnessLiving. If your question isn’t addressed in this article, please contact WellnessLiving Support.

How is the fee-eligible purchase amount determined?

The fee-eligible purchase amount is calculated by applying all fee rules to the purchase subtotal, including applicable taxes, tips, discounts, and surcharges.

Which payment methods are considered in fee calculations?

Only payment methods that are eligible for fees—such as credit cards, ACH, and virtual terminals—are included in the calculation. Non-integrated payments like cash are typically excluded unless otherwise determined in your fee rule setup.

How are fees split among different payment methods?

Fees are collected proportionally based on each payment method’s contribution to the fee-eligible purchase amount. For example, if a credit card accounts for 60% of the eligible amount, it will account for 60% of the total fee.

How does rounding affect fee calculations?

If rounding results in minor discrepancies, any remaining cents are added to the last payment method in the sequence to ensure accurate distribution.

How do multiple fees apply to a single transaction?

When multiple fees apply, they are calculated separately and then summed. For instance, if a $100 transaction has a 5% fee and a 7% fee:

  • Fee A1 = $100 × 5% = $5

  • Fee A2 = $100 × 7% = $7

  • Total Fee = $5 + $7 = $12

How are fees handled for non-integrated payments in split transactions?

If a transaction includes non-integrated payments like cash, the total fee is allocated proportionally across all payment methods, including the cash portion.

Example:

  • Purchase Amount = $35

  • Total Fee = $7 (20% of $35)

  • Fee Allocation:

    • Card 1 ($5) → Fee = $1

    • Card 2 ($10) → Fee = $2

    • Cash ($20) → Fee = $4

How do fees apply when taxes, discounts, and surcharges are involved?

Some fees may apply only to the subtotal and tips, excluding discounts, taxes, and surcharges. This depends on what you’ve included in fee calculations.

In the following example, a transaction is split between cash, ACH, and the virtual terminal, with the fee setup to exclude non-integrated payments, including cash:

  • Amounts

    • Subtotal = $100

    • Discount = 15% ($15)

    • Tax = 10% ($8.5)

    • Tip = $15

    • Surcharge= $5

    • Total = $100 - $15 + $8.5 + $15 +$5 = $113.5

  • Payment methods

    • Cash = $10

    • ACH = $80 with a $2 surcharge

    • Virtual Terminal = $18.5 with a $3 surcharge

  • Fee Breakdown

    • Fee-Eligible Purchase Amount = $103.50

    • Total Fee Rate = 12%

    • Fee = ($103.5 + $5.00 surcharges - $10) × 12% = $12.42

  • Proportional Allocation

    • Cash: $0 in fee

    • ACH: $12.42 * ($82/103.5) = $9.84 Fee

    • Virtual Terminal: $12.42 * ($21.5/103.5) = $2.58 Fee

What happens if fees exceed the total transaction amount?

Fees are capped at the lesser of the fee-eligible purchase amount or the fee-eligible transaction amount, ensuring fees do not exceed the total amount payable.

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