Overview
Fee Management Platform (FMS) streamlines fee handling and integration.
Easily define fees, instantly charge customers, and generate billing reports.
Key Components:
-
Fees API: Collects events, calculates fees, and stores data. Supports optional instant charging.
-
Admin Panel: UI for fee definition and management.
-
Antaca API: Executes balance charges for instant fee transactions.
Architecture
C4 Context diagram
C4 Container diagram
Key product features
Instant fee charging
Calculating the fee for a defined service and instantly deducting the funds from the balance of the end-user who initiated the transaction.
This feature is available only when end-users' balances are stored on Antaca's side or are exetrnal, but integrated with Antaca balances.
Fee money flow
Fee is an internal transaction for a partner who wants to debit the user's balance as a fee.
Our card & balances management system (Antaca) automatically credits the company balance with the funds that were debit the user's balance.
Invoice settlement
Charging defined fees for specific services without actually enforcing payment. A report can be generated from the calculated fees, and then an invoice can be issued.
Transactions (events) subject to fees
| Events we can charge for: (instantly charge end-user’s balance stored in Antaca) |
|
Events we can collect fee for (without debiting balance)
| Events we can collect fee for: (report generating without balance charging) |
|
Fee management options
Set up fees for card issuance and account management through the Admin Panel. Fees can only be configured by a licensed financial institution (BIN Sponsor). If a client isn’t a financial institution, their BIN Sponsor must set up the fees.
Two management options:
- Partner manages and charges fees externally (outside Verestro).
- Partner utilizes Verestro’s built-in fee management module.
Fee settlement types
Fee Management System (FMS) offers various settlement types. Each configured fee in the FMS has its own settlement type, offering flexibility to meet specific needs.
Instant settlement
We charge the fee instantly, right after the occurrence of the event (transaction), utilizing the Antaca API.
FMS can charge customer's balance (the ones managed by Antaca API).
Invoice settlement
We do not charge the fee, we only calculate it and it is stored in our database.
FMS can generate a summary report (weekly or monthly) for fees of this type.
Fee calculation types
Fee Management System (FMS) provides diverse fee calculation methods, ensuring adaptability to distinct requirements. Each configured fee in the FMS is associated with a specific calculation type, allowing for tailored and precise fee management.
Fixed price
We calculate the fee as a fixed price, defined as a specific amount with a designated currency.
Example: We can calculate 0,5 EUR for any issued card.
Percentage
We calculate the fee as a percentage, defined as a specific rate of the transaction amount.
The fee can then be stored either in the transaction's currency, or we can predefine a settlement currency for this type of fee.
Example: We can calculate 0,5% for ATM withdrawal, charged in transaction currency.
Mix
We can combine the two aforementioned types (fixed, percentage) to form a single fee.
The fee will be stored in predefined settlement currency.
Example: We can calculate 0,2 EUR + 0,5% for ATM withdrawal, charged in predefined settlement currency e.g. EUR.
There is implementation on-going to have conditional fees like - "If users do 1000 EUR transaction monthly, we do not charge monthly fee".
Service types
Another important aspect of the system is that we can distinguish whether the fee is defined for individual units or cumulative. In simple terms, if a user intends to charge a fee for each unit, it is labeled as a Unit service. On the other hand, if they prefer to apply tiered or volume pricing for a set number of transactions (events), we refer to it as a Cumulative service.
When defining a fee, the user needs to specify whether it will be a fee for a unit service or a cumulative service.
Unit service
The FMS allows to define the fee for unit services when the price should be independent of the quantity of services used by the customer. This means that for any transaction (event) that occurs, we calculate a predefined price.Example: We can calculate 0,5 EUR for any issued card.
| Fee calculation time | instantly |
| Available price calculation models | fixed, percentage, fixed + percentage |
| Settlement types | instant (debit balance), invoice (store settlement in database) |
| Additional features |
|
| Examples |
|
Cumulative service
The FMS allows to define the fee for a cumulative service when the price depends on the quantity of services used by the customer. This means that we calculate a total price after we receive a summary event, which provides information about the quantity of transactions (events).
| Fee calculation time | at the end of the billing period (weekly, monthly) |
| Available price calculation models | tiered pricing, volume pricing |
| Settlement types | invoice (store settlement in database) |
| Additional features |
|
| Examples |
|
In simple terms, if FMS user wants to apply tiered or volume pricing for a set number of transactions (events), they should opt for the Cumulative service.
Example and comparison of Tiered vs Volume pricing is in table below.
| Volume pricing | Tiered pricing |
| 01-20 = $10 per event 21-30 = $8.5 per event 31-40 = $7 per event 41+ = $5.5 per event |
01-20 = $10 per event 21-30 = $8.5 per event 31-40 = $7 per event 41+ = $5.5 per event |
|
Cost breakdown: You have sold 60 widgets. |
Cost breakdown: You have sold 60 widgets. |
|
Total cost =60 x $5.5 = $330 |
Total cost: (20 x $10) + (10 x $8.5) + (10 x $7) + (20x $5.5) = $465 |
Recurring service
The FMS supports two types of recurring fees with a fixed price model:
- Fixed recurring fee (invoice settlement only)
This fee is charged at the beginning of each billing period (daily, weekly, monthly, or yearly).
A fixed amount is added to the invoice and stored in the settlements.
Use case examples: Monthly project fee, monthly platform maintenance fee. - Fixed recurring fee per card maintenance (instant settlement only)
This fee is charged once per billing period for each active card.
The fee is settled instantly and not stored in the invoice settlements.
Use case examples: Monthly card maintenance fee per card.
| Fee calculation time | Beginning of the billing period (daily, weekly, monthly, yearly) |
| Available price calculation models | Fixed price |
| Settlement types | Invoice or Instant (depending on fee type) |
| Additional features |
|
| Examples |
|
* The functionality marked with '*' is currently under construction. We appreciate your understanding as we work to enhance this feature.