# Calculation of the 3% processing fee

Funds deposited into your Reseller account by credit card or PayPal are subject to a 3% processing fee. The 3% is calculated based on the final amount of payment, including the fee, not the initial amount.

We do not deduct the 3% from the amount you want to credit. We add on to the credit so that you obtain the intended amount.  Resellers based in Canada, please see Example 3 below for how taxes may affect the calculation.

Example:

if \$100 is to be credited, \$100 + 3% fee = final amount.

In other words: \$100 + \$3.09 = \$103.09

The \$3.09 fee is exactly 3% of \$103.09: \$103.09 * 0.03 = \$3.09

To find the final amount that will be charged to credit card or Paypal, divide the amount to be credited by 0.97: \$100 / 0.97 = \$103.09

A common misconception is that the 3% should be calculated based on the \$100: \$100 + \$3 = \$103

However, \$3 is only 2.91% of \$103, not 3%: \$3 / \$103 = 0.0291 so the processing fee would be short by 0.09%.

## Example 2

If a reseller wants a credit of \$2000 to the account, we can calculate the final amount via:

\$2000 / 0.97 = \$2,061.86 (final amount)

\$2,061.86 * 0.03 = \$61.86 (3% fee)

The calculation is accurate because \$2,000 + \$61.86 = \$2,061.86

## Example 3

For resellers based in Canada, some provinces charge a 13% tax. If a reseller wants a credit of \$2000 to the account:

\$2,000 * 0.13 = \$260 (taxes)

\$2,000 + \$260 = \$2,260

\$2,260 / 0.97 = \$2,329.90 (final amount)

\$2,329.90 * 0.03 = \$69.90 (3% fee)

The calculation is accurate because \$2,260 + \$69.90 = \$2,329.90