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How do fees work?

This article explains how platform fees and Zai fees are calculated, applied, and paid out during a transaction.

The Zai fee engine is a customisable tool designed to support a wide range of platform business models.

You can charge fees on both sides of a transaction, allowing you to choose who is charged, how fees are calculated, and when they are applied.

How are fees calculated?

Platforms fees can be calculated in two ways:

1. Fixed fees

A fixed fee is a set amount charged to users per transaction.

Useful when you want predictable fees regardless of transaction value.

2. Percentage fees

A percentage fee is calculated as a percentage of the transaction amount.

You can also configure a:

    • Minimum fee - Useful when your platform processes a high volume of low-value transactions.
    • Capped fee - Useful for high-value transactions where you do not want fees to exceed a specific dollar amount.

Benefits

Zai manages the flow of funds from the buyer’s funding source through to the seller’s nominated disbursement account. Throughout this process, funds do not pass through your platform’s bank account.

Zai provides a mechanism for collecting fees during the payment flow so that your platform only ever receives the fees you charge for your service. This helps eliminate any perception that your platform may be the employer of sellers using it.

Fee types

Fees can be configured based on who is charged and how a transaction is funded.

Payment method surcharges

Zai supports multiple pay-in and pay-out options, each of which may attract a fee. Platforms can also configure payment method surcharges that are added to the Item amount.

The Fees API accepts a parameter that defines what the fee applies to:

  • Buyer
  • Seller
  • Credit card (cc)
  • International wire (int_wire)
  • PayPal pay-in (paypal)
  • PayPal pay-out (paypal_payout)
  • Direct debit (direct_debit)
  • Multi direct debit (multi_direct_debit)

Buyer / seller fees

Buyer fees increase the Item amount paid, while seller fees are deducted from the amount the seller receives.

Both buyers and sellers can be charged fees depending on your platform’s configuration.

Disbursement fees

Fees can be charged when funds are disbursed, based on the type of disbursement account used.

Zai's fees

Zai’s fee component is deducted from your platform’s wallet each time an Item is completed.

Zai’s fees are generally calculated on the Item total.

Example:
For a $100 Item:

  • Your platform charges a 5% fee ($5)
  • Zai charges a 2% fee ($2)
  • Your platform receives $3 net

If you plan to pass Zai’s fees on to users and need to calculate these in advance, contact our Support team to discuss the best approach for your workflow.

When fees are applied and paid out

Fees are applied at the Item level. Depending on configuration, they may add to or subtract from the Item amount based on:

  • The user charged (buyer or seller)

  • The payment method used

Fees are disbursed when funds are released.

Refunds

When initiating a full refund, all fees are refunded.

When initiating a partial refund:

  • Percentage fees are refunded proportionally.
  • Fixed fees are not refunded.

Creating a fee

Fees are created using the Fees API.

If your fee structure is consistent, you may only need to create each fee once.

Advanced workflows: Multiple Items

Zai fees are billed per Item. Some integrations use multiple-Item workflows to move funds between buyers and sellers.

If your integration uses multiple Items, contact your Solutions Specialist or our Support team to discuss the best way to calculate and apply Zai’s fees.