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 |
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,
Total billing amount : IDR 50,000,000 + IDR 5,000,000 =IDR 55,000,000
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
Resulting fees
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
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 |