A core part of the Flex platform is the fees, settlement, and payout process. This process includes the creation of a fee profile, generating fees, reviewing and removing transfers from a settlement, and paying out Flex customers and Merchants.
Most of the actions can be completed using the Flex APIs or via the Dashboard. Some of these actions can only be completed via a Support ticket.
Fees are an integral part of the payment processing lifecycle. Fees are associated with processing credit card transactions. As a Flex customer, you can generate revenue from fees that are generated from your Merchant's transactions.
The creation of a fee profile allows our Flex customers to generate revenue from their Merchants payments. The Flex platform supports both fixed fee and Interchange plus pricing models. Each Flex customer creates a single default fee profile that is inherited by each Merchant. If needed, a separate distinct fee profile can be created for any one specific Merchant.
Creating a fee profile
The Finix implementation team will work with Flex clients to create fee profile.
Updating a fee profile
To update a fee profile, submit a Support ticket with the following information:
- Fee profile fields that you would like to change
- Percentage and or amount to be updated
- Merchant ID: The Merchant ID has a prefix of MU before the resource
For a list of available fee profile fields, contact your Customer Success manager. See How to Update a Fee Profile? for additional information on how to update a fee profile.
Creating additional fee profiles
A Merchant Identity, represented by a MU prefix in the resource ID can have at max, one fee profile per payment processor. A payment processor handles the processing of transactions between Merchants, issuing banks, and acquiring banks. If the Merchant requires more than one fee profile, additional Merchant Identities have to be provisioned.
Viewing a fee profile
Fee profiles can only be viewed on the Dashboard. See How to Update a Fee Profile? for additional instructions on how to view a fee profile.
A settlement represents a collection (e.g. batch) of transfers that are intended to be paid out to a specific Merchant. A transfer represents a flow of funds (e.g. money) to or from a payment instrument. A payment instrument represents the Merchant's bank account or credit card which funds can be transferred in to. Transfers can have the following statuses:
- Succeeded: Funding is captured and available for settlement.
- Failed: Authorization attempt has failed.
- Pending: The authorization on the payment instrument is successfully created but is awaiting capture to complete the request.
- Canceled: The transfer was created but then reversed before the transfer could be moved into the Succeeded status.
Reviewing transfers in a settlement
Settlement transfers can be reviewed via the APIs or the Dashboard.
Via the APIs
To view settlement transfers via the APIs, use the List Transfers in a Batch Settlement API call.
Via the Dashboard
Settlement transfers can be view on the Dashboard under the Review Queue. You can filter the settlements by their state: Pending, Rejected, or Approved.
Removing a transfer from a settlement
To remove a transfer from a settlement, see How to Remove a Transfer from a Settlement?
To approve a previously removed transfer from a settlement, see How to Approve a Removed Transfer from a Settlement?
Timeline for approving or rejecting settlements
Settlements are approved on the Flex platform between 3-4 PM PST. Settlement batching starts at 10:30 AM PST and is performed every 30 minutes until 4 PM PST. Settlements are performed daily.
The settlement actions can be completed via the Flex APIs and or the Dashboard.
Flex customers receive daily net settlements. Fees are collated and collected into an operating account. The operating account collects money that can be used for various actions such as disputes, and or fee disbursement.
The payout plan below defines the schedule and cadence of payouts for Flex customers and their Merchants.
Merchant net revenue minus Flex platform costs are paid out daily.
Finix and Flex customers are paid out monthly. This includes Flex platform costs as well as Flex customer fee revenue.