> ## Documentation Index > Fetch the complete documentation index at: https://docs.mangopay.com/llms.txt > Use this file to discover all available pages before exploring further. # Fees and billing export const WorkingDay = ({content}) => {content} ; ## 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. ## Fees wallet For each currency, Mangopay automatically creates a dedicated [Fees Wallet](/api-reference/client-wallets/client-wallet-object) for the purpose of collecting fees. To collect fees during a transaction, your platform enters an amount in the transaction’s `Fees` parameter. When the transaction request succeeds, the `Fees` amount is deducted from the `DebitedFunds` and directed to the Fees Wallet, while the remaining amount (the `CreditedFunds`) arrive on the Mangopay wallet (indicated by the `CreditedWalletId`). Transactions follow this sum: > `DebitedFunds` - `Fees` = `CreditedFunds` As `Fees` is a required parameter, if you don't wish to collect fees on a give transaction, you need to set the value to zero. The amounts on the Fees Wallet are paid out automatically by Mangopay as part of the [billing](#billing) cycle. Platforms cannot initiate fees payouts to the platform's bank account. ### When to collect fees You can collect fees at each stage of your payment workflow. #### 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. #### Transfer (recommended) 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. #### 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. ## 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 commission Collected 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
**Note – Platforms not able to withdraw funds manually** It is not possible for platforms to withdraw funds from the Fees Wallet manually. Payouts from the Fees Wallet are only executed automatically by Mangopay as part of the billing cycle. 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. For Mangopay’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. ## Related resources The Client Wallet object