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Fee breakdown

TL;DR - Every payout fee is the sum of three layers: the upstream provider's fee, Magma's platform fee, and your fintech's markup. The preview card shows all three so the operator (and you, when reviewing) can always see what's going where.

The three layers

┌─ Provider fee ─────► what the upstream provider charges Magma
├─ Platform fee ─────► what Magma charges your fintech
└─ Your markup  ─────► what your fintech charges this customer

           Total fee = Provider + Platform + Your markup

Each layer follows the same formula:

fee = layer.fixed + (amount × layer.percentage / 100)

Total fee added to the recipient amount = sum of the three layers.

Where each layer is configured

Layer Set by Where
Provider fee The upstream provider Out of your control - fixed by the rail's pricing.
Platform fee Magma Set per-fintech, contractually. Visible in the preview.
Your markup You Globally during customer creation or per-customer in the customer's fees panel.

Setting your markup

Two scopes:

  • Default markup - applies to every new customer unless overridden. Set when you create a customer; can be edited later.
  • Per-customer override - overrides the default for a single customer. Set on the customer's fees panel.

A markup of zero means "no markup" - the customer pays platform + provider only.

Per-rail markups

Markups are configured per rail: ACH, Wire, SWIFT, FX, internal transfers, and crypto-conversion (when supported). You can have a generous markup on SWIFT and zero on ACH, or vice versa, without affecting each other.

Reading the preview card

On every payout preview you'll see something like:

Recipient gets               $9,950.00
─────────────────────────────────────
Provider fee     $3.00 + 0.10%
Platform fee     $5.00 + 0.05%
Your markup      $2.00 + 0.10%
Total fees                     $50.00
─────────────────────────────────────
Total to deduct            $10,000.00

Math:

  • Provider: $3 + $10 (0.10% of $10,000) = $13
  • Platform: $5 + $5 = $10
  • Markup: $2 + $10 = $12
  • Fees: $13 + $10 + $12 = $35
  • Recipient gets: $10,000 − $35 = $9,965

(Numbers above illustrative.)

Tier refresh

The provider's fee tier may shift based on your fintech's processing volume. Tier reassignment happens nightly; the dashboard always shows the current tier. If you see fees you didn't expect on a payout preview, check whether the customer or your fintech crossed a tier in the last 24 hours.

What's next