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Payout Settings

The Payout Settings allows merchants to define who bears the fees associated with payouts. There are three options available for fee allocation: the merchant, the beneficiary, or both the merchant and beneficiary sharing the fee equally. This document explains how to configure these settings.

These settings are used on single payout and bulk payouts.

How to Set Payout Fee Bearer #

How to Access Payout Fee Bearer Settings #

  1. Log in to your ClickPesa Merchant Dashboard.
  2. Navigate to the settings tab, which is typically located at the bottom left corner of your dashboard.
  3. Click on Payout tab on settings page

Configuring Fee Bearer Settings #

Once you have accessed the Payout Fee Bearer Settings, you will find the following options:

  1. Merchant (Default): With this option selected, the merchant covers all fees associated with payouts. The beneficiary receives the full payout amount.
  2. Beneficiary: When this option is chosen, the beneficiary is responsible for covering all payout fees. The merchant disburses the payout amount, and any fees are deducted from the beneficiary’s portion.
  3. Both: Selecting this option means that both the merchant and beneficiary share the payout fees equally. The fees are divided evenly between the two, and the net payout amount is calculated accordingly.

How to Set the Fee Bearer

  1. Click on the preferred fee bearer option. The selected option will be highlighted or marked for clarity.

Tips and Best Practices

  • Consider your business model and customer base when setting the fee bearer option. For example, if your customers are price-sensitive, you may opt to cover the fees as the merchant to enhance the customer experience.
  • It’s advisable to clearly communicate the fee bearer settings to your customers, so they are aware of any potential deductions from their payouts.

Frequently Asked Questions (FAQ) #

  1. Where are Payout Fee Bearer Settings Used?
    • The Payout Fee Bearer Settings are applied to all payout transactions processed through the ClickPesa Merchant Dashboard. The selected fee bearer option determines who covers the fees associated with each payout.
  2. Can I Change the Fee Bearer for Each Payout Transaction?
    • The fee bearer settings are typically configured at the account level. This means that the selected option applies to all payout transactions processed by the merchant. If you have a transaction that need different configurations the best option is to change Fee settings to match transaction requirements, perform the payout and change the settings back to the previous settings. You can always change this setting to match your requirements.
  3. Can the Fee Bearer Setting Be Communicated to the Beneficiary?
    • Yes, it’s a good practice to inform the beneficiary about the fee bearer setting for transparency. This can be done through clear communication in your payment or payout policies and during the transaction process to ensure that beneficiaries are aware of any fee deductions from their payouts.