Understanding the 3% Processing Fee for Deposits

When you add funds to your Reseller account using credit card or PayPal, a 3% processing fee applies. This guide explains:

• How the fee is calculated
• Why it’s based on the final payment amount (not the initial credit)
• Common misconceptions
• Step-by-step examples, including Canadian resellers with tax

Key Things to Know

• The fee is added, not deducted – If you request $100 in account credit, we’ll charge you slightly more than $100 so that the full $100 arrives in your account.
• The 3% is applied to the final amount charged, not the initial credit request.
• Canadian resellers may see tax applied before the 3% fee is calculated.

Why the Fee Works This Way

It’s easy to think 3% should be added directly to your credit request (for example, $100 + $3 = $103). But in that case, the fee is actually less than 3% of the total payment.

To ensure accuracy, the fee is always based on the final amount. This is why we calculate using division instead of a simple percentage add-on.

Examples

Example 1: $100 Credit Request

• Requested credit: $100
• Final charged amount: $103.09
• Processing fee: $3.09

How it works:

• $100 ÷ 0.97 = $103.09 (final amount charged)
• $103.09 × 0.03 = $3.09 (3% fee)
• $100 + $3.09 = $103.09 ✔

Example 2: $2,000 Credit Request

• Requested credit: $2,000
• Final charged amount: $2,061.86
• Processing fee: $61.86

How it works:

• $2,000 ÷ 0.97 = $2,061.86
• $2,061.86 × 0.03 = $61.86
• $2,000 + $61.86 = $2,061.86 ✔️

Example 3: Canadian Resellers with 13% Tax

If you’re based in a province that charges 13% tax, the tax is added before the 3% fee.

• Requested credit: $2,000
• Tax (13%): $260
• Subtotal: $2,260
• Final charged amount: $2,329.90
• Processing fee: $69.90

How it works:

• $2,260 ÷ 0.97 = $2,329.90
• $2,329.90 × 0.03 = $69.90
• $2,260 + $69.90 = $2,329.90 ✔️

Quick Formula

To calculate the final charge for any credit request:

Final amount = (Requested credit + applicable taxes) ÷ 0.97

This ensures the full credit is applied to your account, with the 3% fee correctly factored in.

✅ Tip: Always calculate using the division method (amount ÷ 0.97). Adding 3% directly will result in underpayment and processing delays.