Payment processing fees, reserves and settlement: what merchants should ask

1. Ask what the quoted rate includes

A proposal may describe a percentage fee, a per-transaction charge or a combination. Ask which costs are included and which are separate. Depending on the arrangement, questions may also cover foreign exchange, cross-border transactions, refunds, disputes, setup, monthly charges and minimum commitments.

Use the same business profile when comparing proposals: customer countries, average transaction value, volume and product mix. A rate discussed for one profile may not describe another. Ask the provider to explain the assumptions behind its quote.

• Is the quote a blended rate or does it vary by transaction type?
• Are authorisations, declined transactions or refunds charged separately?
• How are currency conversion costs calculated?
• Are there minimum charges, setup fees or other commitments?

2. Separate a reserve from an ordinary fee

If a provider proposes a reserve, ask how it is calculated, how long amounts may be held and under what conditions they are released. A rolling reserve and a fixed reserve can affect cash availability differently. The label alone does not explain the arrangement.

Request a worked example using your expected volume. Ask how the reserve changes if volume grows, disputes increase or the relationship ends. Avoid assuming that a stated holding period is an unconditional promise of release on a particular date; review the actual release conditions.

3. Define when the settlement clock starts

When someone describes settlement as T plus a number of days, clarify what T means. Is it the transaction date, capture date or another event? Confirm whether the schedule uses business or calendar days, what cut-off time applies and how weekends or holidays are treated.

Also distinguish a provider’s release of funds from the time they arrive at your bank or wallet. Ask what reconciliation information accompanies each payout and how to report a missing or unexpected settlement.

• What event starts the settlement period?
• Which time zone and daily cut-off are used?
• What checks or operational events can delay a payout?
• Can each payout be matched to its underlying transactions and deductions?

4. Clarify the settlement currency and destination

If you are discussing fiat or USDT settlement, ask which currencies, transfer methods and destinations are supported for your business. Confirm any conversion or transfer charges, verification requirements and responsibility for checking the destination details.

Do not assume that two payout options have the same timing, pricing or recovery process. Ask the provider to explain the operational differences, including what happens if incorrect details are supplied. Crown Gate does not hold funds or provide a wallet service.

5. Understand how refunds and disputes change the picture

Ask how refunds and disputes are deducted and how they appear in reports. Visa explains that a dispute can reverse the value of a transaction through the issuer and acquirer. For specific rules and practices, merchants should contact their acquirer or processor.

Make sure someone in your business knows where dispute notices arrive, who prepares evidence and how deadlines are tracked. Good records of orders, fulfilment and customer communication make it easier to respond to an issue with the relevant context.

6. Ask for a single, complete worked example

Give the provider a simple illustrative month: a stated amount of sales, a number of transactions and an assumed level of refunds. Ask it to show each fee, any reserve deduction and the expected settlement sequence. The example should explain the mechanics; it does not replace the signed agreement.

Then ask how the same example changes with a different currency mix, lower volume or a higher refund level. This helps you identify which parts of the arrangement depend on your actual activity. Keep a copy of the explanation alongside the proposed terms.

Use an enquiry to start the right conversation

You do not need a finished payment specification to speak to Crown Gate. Share your current setup and what you want to improve. Where suitable, the KingsGate team can discuss a potential fit and the terms relevant to your business.

Submitting an enquiry does not guarantee acceptance or commit you to a payment service. Fees, reserves, supported settlement options and timing must be confirmed by the relevant provider.