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Intermediate

Payment Gateway Fee Deduction

Also known as: PSP Fee Deduction, Deposit Fee Pass-Through, Processing Fee Deduction

What is Payment Gateway Fee Deduction?

Payment Gateway Fee Deduction is when a broker subtracts the cost of processing a client's deposit — such as a 3% card fee or a fixed PSP charge — from the revenue base before calculating a partner's commission. In effect, the IB or affiliate absorbs part of the deposit's transaction cost.

Every deposit method has a processing cost. Cards run 2%-4%, some local methods more, and wires carry fixed fees. When an agreement pays RevShare on "net revenue," these gateway fees are often deducted first, so the partner's rebate is calculated on a smaller number than the client's gross activity implies.

Key takeaways
  • Gateway fees hit RevShare/net-revenue deals, not pure CPA.
  • Card deposits (2%-4%) are the most common source of the deduction.
  • "Net revenue" in a contract usually means net of processing costs — read it.
  • Steering clients to low-fee rails (wire, crypto) protects your rebate.
  • Unmonitored deductions explain payouts that come in below your own math.

The impact concentrates on RevShare and net-revenue-share deals. On a pure CPA (fixed payment per qualified FTD), gateway fees rarely touch you. On RevShare tied to spread, commission, or trading revenue net of costs, they quietly shave your payout every cycle.

For example, if a client deposits $1,000 by credit card at a 3% fee, the broker incurs $30. Under a net-revenue agreement, that $30 can be deducted before your share is computed, so a 30% RevShare on a $100 trading-revenue month is calculated after processing costs, not before — trimming your check without any change in trading activity.

How it works

When a client deposits, the payment service provider (PSP) charges the broker a percentage or fixed fee to move the money. In agreements that define the commission base as "net" of costs, the broker sums these processing costs (and sometimes bonuses, chargebacks, and other deductions) and removes them from revenue before applying your RevShare percentage.

Because the deduction happens upstream of your rate, a high-fee deposit method mechanically lowers your commission even when the client trades identically. The size of the hit depends on the deposit mix your traffic uses and exactly which costs the contract lets the broker net out.

  1. Client deposits

    Trader funds the account via a method with its own processing cost (e.g. 3% on cards).

  2. PSP charges the broker

    The payment provider deducts a percentage or fixed fee for handling the transaction.

  3. Broker builds the net base

    Under a net-revenue deal, processing fees (and other allowed costs) are subtracted from revenue.

  4. RevShare applied to net

    Your percentage is calculated on the reduced base, not on gross trading revenue.

  5. Payout reflects deduction

    Your commission arrives lower than a gross-based calculation would suggest.

Why it matters for partnership: On RevShare and net-revenue deals, deposit gateway fees are silently deducted before your cut, shrinking payouts. Read whether commission is on gross or net, and steer clients toward low-fee deposit methods.

Formula
Net RevShare = (Trading Revenue − Deposit Processing Fees − Other Allowed Costs) × RevShare %
Real World Example

A partner on a 30% net-revenue deal with a mid-tier broker expects about $600 for a month where their clients generated $2,000 in trading revenue. Because most of those clients deposited by credit card, roughly $250 in gateway fees was netted out first, so the base fell to $1,750 and the actual payout came to $525. The $75 gap was pure gateway-fee deduction, invisible until the partner reconciled the statement.

Gross RevShare vs. net-of-fees RevShare
Factor Gross RevShare Net-of-fees RevShare
Commission base Full trading revenue Revenue minus processing costs
Gateway-fee exposure None to partner Partner absorbs a share
Payout predictability Higher Depends on deposit mix
Best deposit steering Neutral Push low-fee rails

Pro Tip

Encourage clients to fund via low-fee rails like bank wire or crypto so the broker has minimal processing cost to net out of your RevShare base each month.

Common Pitfalls

Assuming your RevShare is on gross revenue, then finding month-end payouts running ~10% under your estimate purely from unmonitored gateway-fee deductions.

FAQ

Does payment gateway fee deduction affect CPA deals?

Generally no. Pure CPA pays a fixed amount per qualified FTD, so processing fees stay with the broker. The deduction mainly reduces RevShare and net-revenue payouts.

How big is the typical deduction?

It tracks the deposit mix. Card-heavy traffic at 2%-4% per deposit can trim a net-revenue payout by several percent; low-fee rails shrink the impact to near zero.

How do I know if fees are being deducted?

Read whether your contract pays on "gross" or "net" revenue, then reconcile a monthly statement against your own gross estimate. A consistent gap points to netted costs.

Can I negotiate gross RevShare instead?

Sometimes. High-volume partners occasionally secure a gross base or a capped-cost clause. It is a legitimate point to raise with your affiliate manager.

Which costs besides gateway fees can be netted out?

Depending on the contract, brokers may also net trading bonuses, chargebacks, refunds, and platform fees. Ask exactly which deductions the "net" definition allows.

Does steering deposit methods breach any rules?

Educating clients on legitimate, available low-fee methods is normal marketing. Avoid any inducement or misleading claim, and never guarantee outcomes.

Sources & further reading
Reviewed by the Revenika Editorial Desk Last updated

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