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Fees

Platforms use Mangopay to collect fees from their users during transactions. Mangopay’s flexible e-wallet system allows platforms to choose exactly when during their payment workflow to take fees. For each currency, Mangopay automatically creates a dedicated fees wallet for the purpose of collecting fees. To collect fees, platforms enter an amount in the transaction’s Fees parameter, which is then deducted from the DebitedFunds and directed to the fees wallet. The remaining funds are the CreditedFunds that arrive on the recipient’s wallet (indicated by the CreditedWalletId). Transactions follow this sum:
DebitedFunds - Fees = CreditedFunds
Note that as fees is a required parameter, if you don’t wish to collect fees on a transaction, you need to set the value to zero. You can collect fees at each stage of your payment workflow.

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When to collect fees

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Pay-in

Collecting fees on pay-ins usually means you are charging the payer for services, because the fees are deducted from the amount they are paying. The Fees parameter can be used to specify fees on all payment methods, except:
  • Bank wire: The DeclaredFees parameter is used to declare the amount in advance (like the debited funds). If the transaction is successful, the Fees parameter is updated with the declared amount.
  • Virtual IBAN: There is no way to take fees on this payment method. The funds are registered automatically when they arrive on the IBAN of the wallet, so there is no way to indicate and divert fees.
In case of a chargeback, fees are also reverted. For more information on managing fees during refunds, see Refunds - Handling fees. Collecting fees on transfers gives you more flexibility because the funds are already inside the Mangopay environment and can therefore be managed more easily. The transfer stage also involves both sides of your platform, Payers and Owners, which gives you flexibility to modify your business model over time.

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Payout

Collecting fees on payouts usually means you are charging the recipient for services, because the fees are deducted from the amount they pay out to their bank account. In case of pay-in refunds (to the buyer), taking fees on the payout makes managing the full refund flow and reconciliation more complex.

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Billing

The commission and fees that Mangopay charges platforms is managed separately from the payment activity of your users and the Fees you charge them. Within the first 5 of the month, Mangopay generates an invoice for the previous month based on the pricing in the platform’s contract. There is one invoice generated per currency (like there is one fees wallet per currency). The balance of the platform’s fees wallet for each currency is used by Mangopay during invoicing. On the 5th of the month, the sum of the fees collected during the previous month is paid out. There are two possible cases:
Collected fees > Mangopay commissionCollected fees ≤ Mangopay commission
If the sum of the collected fees is greater than the amount due to Mangopay, then:
  • Mangopay withdraws its commission from the collected fees and pays the remainder to the platform’s bank account
If the sum of the collected fees is less than (or equal to) the amount due to Mangopay, then:
  • Mangopay uses the entirety of the collected fees towards the payable invoice
  • On the 20th of the month, the remaining amount due on the invoice is debited automatically from the platform’s bank account via direct debit
The platform’s bank account is set up, for both credit transfers and direct debits, during initial onboarding or during activation of a new currency. For fees payouts, the payment is made in the currency of the fees wallet. ForMangopay’s invoices, payments are collected as follows:
  • EUR invoices via SEPA Direct Debit (SDD)
  • GBP invoices via BACS Direct Debit
  • Invoices in other currencies are converted to EUR before payment via SDD
For any queries related to billing processes, contact the Support team via the Dashboard.

Endpoints

The Client Wallet object