At the moment, Paystack does not allow merchants to automatically pass transaction charges to customers. Since we do not offer this feature, you will have to achieve this on your end. You can use a formula to include our charges in the final amount you charge your customer.
How do I calculate the final amount to include Paystack's transaction fees?
This varies based on the amount being charged and the transaction fees of your country. For certain transactions, there are flat fees as well as percentage fees so we would provide a formula for percentage fees and another for percentage fees + flat fees. To know what pricing applies to you please read: What are Paystack's transaction charges?
Here are a few things you need to take note of:
- Price - This is how much you will receive after we deduct our transaction fees. This is the amount you want to collect from your customers.
- Decimal Fee - This is our percentage transaction fee converted to decimals. To calculate this simply divide the fee that applies to you by 100. So if the transaction fee for your country is 1.95%, your decimal fee is 0.0195.
- Flat fee - This is the flat fee we charge based on our pricing.
- Final Amount - This is the gross amount you pass to your customer, including our transaction fees. This is the amount they will actually be paying.
I'm being charged a percentage fee only
Here are the steps you can implement for this:
-
Get the Price: This is the amount you want to charge your customer.
-
Calculate applicable fees: Based on your fee structure, you calculate the fees the customer would be charged if you were not passing these fees to them. This is because of the transaction fee cap.
Applicable Fees = {Decimal Fee} * Price
-
Implement the formula that applies based on applicable fees:
If the
Applicable Fees
are greater than theFee Cap
, here's the formula that applies to you:Final Amount = {Price} + {Fee Cap}
If the
Applicable Fees
are less than theFee Cap
, here's the formula that applies to you:Final Amount = ({Price} / (1 - {Decimal Fee})) + 0.01
I'm being charged a percentage fee and a flat fee
Here are the steps you can implement for this:
-
Get the Price: This is the amount you want to charge your customer.
-
Calculate applicable fees: Based on your fee structure, you calculate the fees the customer would be charged if you were not passing these fees to them. This is because of the transaction fee cap.
Applicable Fees = ({Decimal Fee} * {Price}) + {Flat Fee}
-
Implement the formula that applies based on applicable fees:
If the
Applicable Fees
are greater than theFee Cap
, here's the formula that applies to you:Final Amount - {Price} + {Fee Cap}
If the
Applicable Fees
are less than theFee Cap
, here's the formula that applies to you:Final Amount = (({Price} + {Flat Fee}) / (1 - {Decimal Fee})) + 0.01
Important to note
For Nigeria: Local transactions are capped at N2,000, so the charges passed to your customer should also be capped at N2,000. We’ll also charge our processing fees on the additional amount passed to your customer. This will slightly increase the final amount charged to your customer.
For all countries: We’ll also charge our processing fees on the additional amount passed to your customer. This will slightly increase the final amount charged to your customer.
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