Fee Engine

Braid’s flexible fee management system allows financial institutions to manage transaction-based fees in real-time, with options to configure fees at both the product and account levels. This guide helps you understand how to leverage these features for effective fee collection and revenue management.

Key Concepts in Fee Management

Fee Charging Account

By default, transaction fees are debited from the originating or receiving account, but you can direct fees to a designated Fee Charging Account.
This approach allows financial institutions to decide who bears the transaction fee, ensuring better alignment with different business models.
Example: Direct fees to a fintech partner’s account instead of the customer’s account when required.

Fee Settlement Account

Allows for the aggregation of revenue by program or product, enabling clear visibility and control over different business lines.
This ensures fee revenue from specific products or programs is directed to appropriate accounts for tracking and analysis.
Example: Use different Fee Settlement Accounts to manage fintech partnership revenue separately from commercial client revenue.

Stackable Fees

Braid supports applying multiple fees to a single transaction type, directing each fee to different accounts as needed.
Example: A transaction may have a flat fee debited from the transaction account and a percentage-based fee charged to the Fee Charging Account.

Negative Balance Handling

When a fee debit causes a negative balance, Braid generates a receivable that is collected in real-time upon the next deposit or “top-up.” This ensures that transactions are not disrupted, and outstanding fees are recovered promptly.
Example: If a transaction fee pushes an account into a negative balance, the receivable is collected upon the next deposit, maintaining uninterrupted service.

Fee Configuration at the Product Level

Braid allows you to configure fees at the product level, applying fee logic to a group of customers and accounts under that product.
This approach ensures consistent fee application across all customers using a particular product, simplifying fee management.
Example: Set a standard transaction fee for all accounts under a fintech service offering, ensuring uniform fee treatment.

Overriding Fees at the Account Level

While fees can be set at the product level, they can also be overridden at the account level. This means specific accounts can have custom fee configurations that differ from the broader product-level settings.
Example: A specific customer’s account can have a reduced or waived fee, even if the product-level fee is higher.

Best Practices

Leverage Product-Level Configuration: Use product-level fees to ensure consistent application across similar customer groups, simplifying fee management.
Customize as Needed: Override fees at the account level for specific cases to accommodate special agreements or promotional rates.
Optimize Revenue: Combine different fee types and direct them to appropriate accounts to align revenue collection with financial goals.
Maintain Continuous Operations: Utilize negative balance handling to support seamless transaction flow and timely receivable recovery.