# How are fees deducted from settlement?

#### Does Bead net fees from settlement?

Yes. Bead generally nets transaction-level fees from merchant settlement.

For each transaction, Bead applies the applicable pricing for the tender type used. That pricing can include a percentage-based fee and a per-transaction fee. Those transaction-level fees are deducted before funds are settled to the merchant.

#### How does the math work?

A typical transaction-level fee calculation is:

Transaction amount - percentage fee - per-transaction fee = net settlement amount

For example, if a merchant processes a $1,000.00 transaction with a 2.5% transaction rate and a $0.50 per-transaction fee:

| Item                                    | Amount    |
| --------------------------------------- | --------- |
| Gross transaction amount                | $1,000.00 |
| 2.5% transaction fee                    | -$25.00   |
| Per-transaction fee                     | -$0.50    |
| Net amount before any other adjustments | $974.50   |

If a transaction only had a 5% fee and no additional per-transaction fee, a $1,000.00 transaction would net to $950.00. If a per-transaction fee also applies, that amount would be deducted in addition to the percentage fee.

#### Do fees vary by tender type?

Yes. Pricing can vary by tender type.

Crypto, PayPal, Venmo, Klarna, and other supported tender types may each have different pricing. The applicable fee is based on the tender type used for the transaction and the merchant’s commercial agreement.

#### Are transaction fees the only fees Bead charges?

No. Transaction-level fees are generally netted from settlement, but other fees may be billed separately.

Examples of fees that may be billed separately include:

* Monthly maintenance fees
* Usage-based fees
* One-time fees
* Other fees handled outside transaction-level settlement

The exact billing treatment depends on the merchant’s commercial agreement and Bead’s configured fee schedule.

#### Does Bead deposit gross or net settlement?

For transaction-level settlement, Bead generally deposits the net settlement amount after applicable transaction-level fees are deducted.

For example, if a transaction has a percentage fee and a per-transaction fee, those amounts are deducted before the merchant settlement deposit. Separately billed fees may still be invoiced or collected on a monthly or other agreed schedule.

#### How should partners reconcile fees?

Partners should use the Settlement and Deposits APIs for reconciliation.

Settlement records can show gross fundable amount, transaction fees, deposit fees, adjustments, and net fundable amount. Deposit records show the funded movement associated with the settlement. Payment-level settlement records can be used when a partner needs to reconcile settlement back to individual transactions.


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