Billing Deduction Method
How fees are deducted
Direct and Indirect deduction
In Xendit there are two main deduction types, these are called Direct deduction and Indirect deduction. The main differences between the two types of deduction are in when the deduction occurs and from which balance on the Xendit dashboard the deduction is taken from. The below table outlines the main differences between the two deduction types of Direct deduction and Indirect deduction,
| Method | Description | Deduction Time | Settled From |
|---|---|---|---|
| DIRECT | The fees and VAT charges for the product are calculated and then deducted at the point of transaction settlement (completion) | Per transaction, as it occurs | Cash balance |
| INDIRECT | The fees and VAT charges for the product are calculated at the end of the month and the billing amount settled after the billing statement has been issued | Aggregated, after the billing month | Billing wallet |
- Direct deduction could be more suitable if you or your company prefer a more simplified version of billing as there’s no need to settle outstanding charged
- Indirect deduction could be more suitable if you or your company prefer to be charged on a month to month basis with a billing statement (customer invoice) summarizing all outstanding charges
Billing models available
Level pricing
The level pricing model applies the same fee per transaction for all transactions for a product. This reduces the variance of fees within the same product and the same fee will be charged for every transaction. A example calculation is given below,
Scenario,
- Product used : Disbursements
- Transaction count : 10,000 transactions in a single month
- Fee rate : IDR 5,000 (per transaction)
- Resulting fees : 10,000 * IDR 5,000 = IDR 50,000,000
- Resulting VAT : 10% * (10,000 * IDR 5,000) =IDR 5,000,000
Total billing amount : IDR 50,000,000 + IDR 5,000,000 =IDR 55,000,000
Graduated tier pricing
The graduated tier pricing model applies a discounted fee per transaction once a certain threshold is met for a product. In Xendit we set up to three different tier prices per product, which allows customers to have lower fee per transactions as the transaction count grows. If you are interested in using the graduated tier pricing model, please reach out to your AM and/or Sales rep. A example calculation is given below,
Scenario:
Product used : Disbursements
Transaction count : 10,000 transactions in a single month
Fee rate settings
- Tier 1 rate : IDR 5,000
- Tier 2 rate : IDR 4,600
- Tier 3 rate : IDR 4,200
- Tier 1 ending threshold : 5,000 transaction count
- Tier 2 ending threshold : 10,000 transaction count
Resulting fees
- Tier 1 fees : 5,000 * IDR 5,000 = IDR 25,000,000
- Tier 2 fees : 5,000 * IDR 4,600 = IDR 23,000,000
- Tier 3 fees : 0 * IDR 4,200 = IDR 0
- Total fees : IDR 48,000,000
Resulting VAT : 10% * (IDR 48,000,000) =IDR 4,800,000
Total billing amount : IDR 48,000,000 + IDR 4,800,000 =IDR 52,800,000
Products and their billing models
The following table provides an overview of what is available for each product,
| Product | Deduction Type | Available Models |
|---|---|---|
| Virtual Account - Aggregator | Direct or Indirect | Graduated tier pricing, or Level pricing |
| Virtual Account - Switcher | Indirect | Graduated tier pricing, or Level pricing |
| Disbursements | Direct or Indirect | Graduated tier pricing, or Level pricing |
| Retail Outlet | Direct or Indirect | Graduated tier pricing, or Level pricing |
| Credit Cards - Aggregator | Direct or Indirect | Level pricing |
| Credit Cards - Switcher | Indirect | Level pricing |
| Fraud Detection | Direct or Indirect | Graduated tier pricing, or Level pricing |
| Ewallet | Direct | Level pricing |
| Cardless Credit | Indirect | Level pricing |
| QRIS | Direct | Level pricing |
| Direct Debit | Direct | Level pricing |
| Name Validator | Indirect | Graduated tier pricing, or Level pricing |