Calculation of the 3% processing fee

Funds deposited into your Reseller account by credit card or PayPal are subject to a 3% processing fee. The 3% is calculated based on the final amount of payment, including the fee, not the initial amount.

We do not deduct the 3% from the amount you want to credit. We add on to the credit so that you obtain the intended amount.  Resellers based in Canada, please see Example 3 below for how taxes may affect the calculation.

Example:

if $100 is to be credited, 
$100 + 3% fee = final amount.

In other words: 
$100 + $3.09 = $103.09

The $3.09 fee is exactly 3% of $103.09: 
$103.09 * 0.03 = $3.09

To find the final amount that will be charged to credit card or Paypal, divide the amount to be credited by 0.97:
 $100 / 0.97 = $103.09

A common misconception is that the 3% should be calculated based on the $100: 
$100 + $3 = $103

However, $3 is only 2.91% of $103, not 3%: 
$3 / $103 = 0.0291 
so the processing fee would be short by 0.09%.

If a reseller wants a credit of $2000 to the account, we can calculate the final amount via:


$2000 / 0.97 = $2,061.86 (final amount)


$2,061.86 * 0.03 = $61.86 (3% fee)

The calculation is accurate because 
$2,000 + $61.86 = $2,061.86

For resellers based in Canada, some provinces charge a 13% tax. 
If a reseller wants a credit of $2000 to the account:


$2,000 * 0.13 = $260 (taxes)


$2,000 + $260 = $2,260

$2,260 / 0.97 = $2,329.90 (final amount)


$2,329.90 * 0.03 = $69.90 (3% fee)

The calculation is accurate because 
$2,260 + $69.90 = $2,329.90