Now that we've explained what is convenience fee and how to enable it from your Instamojo Dashboard, let us introduce you to a similar feature that allows you to automatically pass on the Faster Payout charges to your customer. This is an extension of the convenience fee feature that allows you to include the faster payout charges too as the convenience fee.
How is this convenience charge calculated?
Once you enable the feature, a convenience fee equal to your faster payout fee will be added to all your future payments.
- Let's say you have created a link of INR 1000 and have enabled Next Day Payout(NDP).
- Once you enable the option to pass the NDP charges to the customer, your customer will be charged a convenience fee of INR 2.5(0.25% of 1000) + 18% GST. Hence, the customer will be paying INR 1002.95. You can now check your convenience charges in calculators convenience fee calculators.
- You will be paid out INR 972.86, after deducting the payment gateway fee from the 1000 INR(you can add the payment gateway charges as well in the convenience fee).
Now, in the above example if you have enabled convenience fee for the Instamojo transaction fee as well:
- Your customer will be charged a total convenience fee of INR 41.89(= 3.25%+3)+ GST.
- You will be paid out INR 1000 in this case.
The convenience fee for faster payout is calculated based on the payout schedule you are on at the time your buyer makes the payment. You can read about the fee structure for faster payouts here.
What happens when you move to default payout?
For any payments post enabling the default payout cycle(T+3 working days), no additional fee will be charged on any future payments.
You can always select your preferred payout TAT from your Dashboard, under the Payout Settings: