What do the charges on my invoice mean?

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We issue processing statements for our partners on a monthly basis. Those statements may include a variety of different line items depending on the types of transactions processed in the invoice period.

A list of definitions and examples (if applicable) can be found below for your convenience:

Key Terms Description
Authorization Charge per Transaction

Payment processing fees are set at 2.9% + $0.30 per transaction. The $0.30 fee is not automatically deducted in your payouts and instead, is invoiced alongside any other one-time charges in the period.

Example: If we processed 10 transactions for you in a service period, the total authorization charge would be 10 x $0.30 = $3.00.

Subscription Fee This is the monthly or annual subscription fee for leveraging Elective as your dedicated in-house billings team.
Chargeback Processing Fee

If a customer contests a transaction and initiates a chargeback, we retain the payment processing fees associated with the transaction and charge a fee of USD $25 per disputed instalment.

Example: A customer has paid 2 instalments on their payment plan and files a chargeback for both payments. In this case, we will retain payment processing fees for the 2 transactions and charge $50.00 for the 2 chargebacks. ($25 x 2)

Failed Chargeback Filing Fee

If you fail to respond with sufficient evidence to a dispute within 5 business days, we charge a fee of USD $50 per disputed instalment.

Example: A customer has paid 2 instalments on their payment plan, files a chargeback for the 2 payments, and evidence is not provided within 5 business days. In this case, we will charge $100.00 ($50 x 2).

Chargeback Dispute Credit

In the event that a disputed transaction is reversed in your favour, a credit will be applied to a subsequent invoice.

Example: If 2 instalments of $500.00 ($1,000.00) were previously disputed and later won, a credit of $1,000.00 will be applied in your favor.

Refund Processing Fee

In the event of a refund, we will retain the payment processing fees associated with each refunded instalment.

Example: If 4 paid instalments collected are being refunded and we charged $0.30 per transaction, we will retain the $1.20 in processing fees after the refund.

Pro-Rated Upgrade Charge

ou may upgrade to a higher volume tier at any time. When you upgrade, the new subscription fee will be applied to your account immediately and you will be charged an additional fee equal to the difference between the prior Subscription Fee and the upgraded Subscription Fee calculated on a pro-rated basis.

Example: If you are on an annual billing cycle for the Startup Tier ($1,188 / year) and you decide to upgrade to the Core Tier ($2,988 / year) half way through your annual billing cycle you will be billed an amount equal to ([New Tier] - [Original Tier]) * ([Days remaining in billing cycle / Days in billing cycle]). In this case, it would be ([$2,988] - [$1,188]) * ([182 / 365]) = $897.53


If your payment processing value for the Subscription Period exceeds the cap set for your respective tier, an overcharge fee may apply. The applicable overage fee for each tier is set out in your merchant agreement.

Example: Let’s say the payment processing cap for your respective tier is $120,000 for the year and additional revenue is billed at 1%. If you end up processing $130,000 in the year and do not upgrade, the Overage that will be charged is 1% * $10,000 = $100.

Previous Balance An invoice is only charged if the amount due is equal to or greater than $5.00. Any amounts lower than $5.00 will be carried over to future invoices and will appear as the "Previous Balance" line item.

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