Can I pass the transaction charges to my customers?

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 the Fee Cap, here's the formula that applies to you: 

  Final Amount = {Price} + {Fee Cap}

     

  If the Applicable Fees are less than the Fee 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 the Fee Cap, here's the formula that applies to you:

  Final Amount - {Price} + {Fee Cap}

   

  If the Applicable Fees are less than the Fee Cap, here's the formula that applies to you:

  Final Amount = (({Price} + {Flat Fee}) / (1 - {Decimal Fee})) + 0.01