As a payment gateway merchant, managing transaction fees and VAT for your customers is an important part of optimizing your payment processes. Hydrogen Pay allows you to either absorb transaction fees or split them with your customers fully or partially. This flexibility helps you control operational costs while providing transparency to customers about additional charges.
This step-by-step guide will walk you through how to configure fee transfer settings on Hydrogen Pay's dashboard, enabling you to split transaction fees and VAT to customers if you choose.
Why Configure Fee Transfer?
Hydrogen Pay’s fee transfer option allows merchants to pass on transaction fees to customers, who will be notified at checkout. This ensures that customers are fully aware of additional costs, such as VAT or other processing fees, before completing a payment.
Currently, the standard fee structure for Hydrogen Pay is:
- Transaction Fee: 1% of the transaction amount
- VAT: 7.5% applied to the transaction fee
Merchants are set to cover the 1% transaction fee and VAT by default. However, with the fee transfer option, this cost can be shifted to your customers instead or shared.
Step-by-Step Guide to Configuring Fee Transfer Settings
Follow these simple steps to configure fee transfer settings on your Hydrogen Pay dashboard:
Step 1: Log In to Your Hydrogen Pay Account
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Open your browser and go to Hydrogen Merchant Dashboard.
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Enter your email address and password, then click the Login button.
Step 2: Access Profile & Settings
- Once you’ve logged in, locate the user icon in the upper right corner of the screen.
- Click on the drop-down menu beside the user icon to reveal additional options.
- From the drop-down options, select Profile & Settings. This will redirect you to the settings page where you can manage various configurations.
Step 3: Navigate to Settlement
- On the Profile & Settings page, look at the left-side navigation panel.
- Scroll down to the third menu item labeled Settlement and click on it. This section handles settlement and fee configurations for your transactions.
Step 4: Configure Fee Transfer Charge Settings
- Within the Settlement menu, find the section labeled Fee Transfer Charge Settings. This is where you can control who bears the transaction fees and VAT.
- Move the fee transfer slider between the following options:
Merchant Pays: The default option, where you as the merchant absorb 100% of the transaction fees and VAT.
Customer Pays: If you select this option, the transaction fees and VAT will be transferred to the customer, and they will be notified of these charges during checkout.
Step 5: Confirm and Save Changes
- After making your selection (either keeping the fees on the merchant or transferring them to the customer), hit the Confirm button to save the changes.
- Your updated settings will now automatically reflect on all pending and future payments.
Once the changes are confirmed, the system will update your payment structure, and customers will be informed of the charges whenever they attempt to make a payment.
Example: Transaction Comparison (Merchant Pays vs. Customer Pays)
To illustrate how fee transfer settings work, let's assume a transaction value of 1,000 NGN.
1. When the Merchant Pays the Fees
In this scenario, the merchant absorbs the 1% transaction fee and 7.5% VAT on the fee.
- Transaction Amount: 1,000 NGN
- Transaction Fee (1%): 1% of 1,000 NGN = 10 NGN
- VAT on Fee (7.5%): 7.5% of 10 NGN = 0.75 NGN
The total deduction from the merchant's account would be:
- Total Fees (Transaction Fee + VAT): 10 NGN + 0.75 NGN = 10.75 NGN
In this case, the merchant receives:
- Amount Settled to Merchant: 1,000 NGN - 10.75 NGN = 989.25 NGN
The customer pays exactly 1,000 NGN with no additional fees.
2. When the Customer Pays the Fees
In this case, the customer is charged for the transaction fee and VAT, which is added to the transaction amount at checkout.
- Transaction Amount: 1,000 NGN
- Transaction Fee (1%): 1% of 1,000 NGN = 10 NGN
- VAT on Fee (7.5%): 7.5% of 10 NGN = 0.75 NGN
The total charge to the customer would be:
- Total Fees (Transaction Fee + VAT): 10 NGN + 0.75 NGN = 10.75 NGN
Thus, the customer will pay:
- Total Amount Charged to Customer: 1,000 NGN + 10.75 NGN = 1,010.75 NGN
The merchant still receives:
- Amount Settled to Merchant: 1,000 NGN
In this scenario, the customer bears the additional cost of 10.75 NGN during checkout.
Important Points to Remember
- Changes to fee transfer settings will apply to pending payments as well.
- Customers will be notified of any additional charges when they are about to complete a transaction.
- You can switch between merchant and customer-paid fees at any time by following these same steps.
Managing transaction fees efficiently can help you balance your operational costs and ensure transparency with your customers. Hydrogen Pay’s flexible fee transfer option allows you to easily decide whether you want to cover the transaction fees yourself or transfer them to your customers.
Following the steps outlined above allows you to configure these settings in just a few clicks. This ensures your fee structure aligns with your business strategy while keeping customers informed of any charges before they complete a transaction.
For further assistance, you can always reach out to Hydrogen Pay’s support team through the dashboard or send an email to support@hydrogenpay.com.
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