What are platform fees and how are they used?
Tilled allows partners to specify a platform_fee
amount when creating a payment intent, which is a fee that is deducted from the total amount and directed to the partner. Consider it a per-transaction service fee that users pay to partners. Platform fees cannot be greater than the total payment amount less fees.
For example, if a customer makes a $10 payment to a merchant with a platform fee of $1.00, the merchant would receive $9 and the partner would receive $1.00.
Partners have utilized platform fees to:
- Pass on the merchant's processing cost to the customer
- Bill for service or SaaS fees
- Enable tip add-ons and donations