How Merchant and Transaction Fees Are Calculated
Merchant fees and transaction fees are charged by transaction processing companies every time a transaction goes through. Merchant fees are a percentage of the transaction amount while transaction fees are a fixed amount.
The merchant fee rate that you pay will depend upon whether or not you have a Blender Market Subscription plan, and which plan you have. Transaction fees are waived for Basic, Pro, and Ultimate subscribers.
The merchant fee that you pay is calculated as a function of the price of your product and then subtracted from your product price.
(price - (price * merchant_fee) - transaction_fee) * commission_rate = initial commission
If you were to sell a $25 product, for example, the merchant fee would be the following:
- Free plan (3.5%): $0.88
- Basic subscription (3.0%): $0.75
- Pro subscription (2.5%): $0.63
- Ultimate subscription (2.0%): $0.50
Are Merchant Fees Charged on Products or Transactions?
Merchant fees are calculated on a per-product basis. That means that if a customer adds two of your products to their cart and checks out, the merchant fee will be calculated for each product individually, rather than for the combined cost of the products.