How to Understand Your Processing Fees and Payouts

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Welcome to 4Geeks Payments, the seamless solution for managing your revenue. This guide will help you understand how processing fees are structured and how your payouts are handled. With 4Geeks Payments, you get a transparent and efficient system designed to help you keep more of your earnings and maintain a healthy cash flow.

Prerequisites

Before you can start accepting payments and receiving payouts, please ensure you have the following:

  • A 4Geeks Payments account.
  • Your business’s bank account information has been accurately entered and verified in your 4Geeks Payments dashboard.
  • You have successfully processed at least one transaction.

How to View and Understand Your Processing Fees

4Geeks Payments charges a standard processing fee for each successful card transaction. This fee covers the cost of securely processing the payment. Here’s how you can view and understand these fees:

  1. Locate Your Transaction Reports: Log in to your 4Geeks Payments dashboard. Navigate to the “Reports” or “Transactions” section. Here, you will find a detailed list of all your transactions.
  2. Examine Individual Transactions: Click on any single transaction to see a detailed breakdown. You will see the total transaction amount and the fee that was deducted.
  3. Understand the Fee Structure: The processing fee is typically a percentage of the transaction amount plus a fixed fee. For example, a common structure is 2.9% + $0.60 per transaction in the United States. These rates can vary based on your country. You can find a complete list of fees for supported countries in the 4Geeks Payments documentation.
  4. Monthly Statements: At the end of each month, you can download a monthly statement that summarizes all your transactions and the total fees paid. This is useful for accounting and reconciliation purposes.

How to Track Your Payouts

Payouts are the funds transferred from your 4Geeks Payments account to your bank account. Here’s how to track them:

  1. Navigate to the Payouts Section: In your 4Geeks Payments dashboard, find the “Banking” or “Payouts” section.
  2. View Your Payout Schedule: By default, 4Geeks Payments sends payouts daily. Confirmed sales are held in a pending balance for 5 calendar days as a security measure before becoming available for payout.
  3. Track Payout Status: The payouts dashboard will show the status of each payout:
    • Pending: The payout is scheduled but has not yet been sent.
    • In Transit: The funds have been sent from 4Geeks Payments and are on their way to your bank.
    • Paid: The funds have been successfully deposited into your bank account.
    • Failed: The transfer was unsuccessful and the funds were returned.
  4. Understand Payout Timing: Once a payout is initiated, it typically takes 2 to 5 business days for the funds to appear in your bank account. This timing can be affected by your bank’s processing times and public holidays.

Common Use Cases

  • Scenario 1: Daily Sales Reconciliation: A small online retail business uses the daily transaction reports to reconcile their sales from the previous day. They can see the gross sales, the fees deducted for each transaction, and the net amount that will be added to their pending payout balance. This helps them keep a close eye on their daily revenue and expenses.

  • Scenario 2: Managing Cash Flow for a Subscription Service: A SaaS company with a subscription-based model uses the payout schedule to forecast their monthly cash flow. By knowing that payouts are sent daily after a 5-day pending period, they can predict when funds will be available to cover their operational costs.

Troubleshooting

  • Issue 1: My payout has not arrived in my bank account.

    • Solution: Check the status of the payout in your dashboard. If it is “In Transit,” it may take a few more business days. Payouts can be delayed by weekends and bank holidays. Also, verify that your bank account information is correct.

  • Issue 2: The payout amount is less than I expected.

    • Solution: This could be due to refunds or chargebacks that have been deducted from your balance. Review your transaction history for any such events. Additionally, while 4Geeks Payments does not charge a fee per payout, your bank might have its own fees for incoming transfers.

  • Issue 3: A payment from a customer failed.

    • Solution: There are several reasons a charge might fail, including incorrect card information or insufficient funds in the customer’s account. Some payment gateways will automatically retry the charge. It is recommended to investigate the cause if you experience a high number of failed payments.

FAQs

  • Question 1: Are there any monthly fees for using 4Geeks Payments?

    • Answer: No, there are no setup or monthly fees for using 4Geeks Payments. You are only charged a processing fee on successful transactions.

  • Question 2: In what currency will I receive my payouts?

    • Answer: You can accept payments in multiple currencies. However, payouts to your bank account will be in the official currency of the country where your business is legally based. 4Geeks Payments will apply a standard conversion rate if necessary.

Conclusion

Understanding your processing fees and payout schedule is crucial for managing your business’s finances effectively. 4Geeks Payments provides clear and detailed reporting to help you stay on top of your revenue.

Additional Resources