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Transactional Billing
Transactional Billing
Updated over 4 months ago

Understanding Transactional Billing

Transactional Billing is a pay-per-use model where fees are applied to each transaction processed through RentalTide. This model is ideal for businesses with variable transaction volumes, allowing you to pay based on actual usage without committing to a fixed monthly fee.

Key Features:

  • Flexibility: Pay only for what you use.

  • Scalability: Easily accommodate fluctuating transaction volumes.

  • Transparency: Clear breakdown of fees per transaction.

Transactional Billing Process

  1. Transaction Completion:

    • A customer completes a transaction (e.g., a sale or rental) through RentalTide.

  2. Fee Calculation:

    • RentalTide automatically calculates the billing fee based on the predefined rate (e.g., 6% of the transaction amount).

  3. Immediate Deduction:

    • The calculated fee is deducted directly from your linked payment account at the time of the transaction.

  4. Transaction Recording:

    • Each billed transaction is recorded in your billing statements for accurate tracking and review.

Transactional Fees Explained

  • Rate: 6% of each transaction amount.

  • Example:

    • Transaction Amount: $200

    • Billing Fee: $200 * 6% = $12

  • Process:

    • Upon completing the $200 transaction, RentalTide deducts $12 from your linked payment account.

    • Net Amount: $200 - $12 = $188 is transferred to your account.

Transactional Billing Example

Scenario: You process a sale of $150 through RentalTide.

Billing Calculation:

  • Transaction Amount: $150

  • Billing Rate: 6%

  • Billing Fee: $150 * 6% = $9

Process:

  1. Transaction Completion: A customer completes a $150 transaction.

  2. Fee Deduction: RentalTide deducts $9 immediately from your linked payment account.

  3. Net Amount: $150 - $9 = $141 is transferred to your account.

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