MPay automatically calculates how funds from each order are distributed between the seller, the operator, and any fees. This article explains the three stages of that calculation and uses a hypothetical worked example to show how each figure is derived.
If you've ever noticed that your commission income is slightly lower than your headline rate would suggest, this article explains why.
How the calculation works
When a shopper completes a purchase, funds move through three stages before reaching the seller and operator:
- The acquiring payment gateway processes the transaction and deducts its fee before passing funds to the MPay holding account.
- MPay calculates the seller's payout from the original order value and transfers it to the seller's connected account.
- The operator receives the residual — whatever remains in the holding account after the seller has been paid.
The gateway fee is deducted before the split. This means the operator absorbs that cost, not the seller.
Worked example: One order of $950
The following example uses hypothetical figures:
| Variable | Hypothetical value |
| Commission rate | 5% |
| Merchant fee | $1.00 per order |
| MPay processing fee | $0.30 per invoice |
| Operator payout margin | $0.20 per invoice |
| Gateway fee | 1% of order value |
Step 1 — Gateway deduction
The gateway processes the shopper's payment and deducts its fee before the funds reach the MPay holding account. The gateway fee is an operator cost, and it is deducted from the funds before they reach MPay and is not passed through to the seller.
| Amount | |
| Shopper payment | $950.00 |
| Gateway fee (1%) | −$9.50 |
| Amount deposited to MPay | $940.50 |
Step 2 — Seller payout calculation
MPay calculates the seller's payout from the full shopper payment, minus the operator's commission, merchant fee, MPay processing fee, and operator payout margin.
| Amount | |
| Shopper payment | $950.00 |
| Operator commission (5%) | −$47.50 |
| Merchant fee | −$1.00 |
|
MPay processing fee
|
−$0.50 |
| Seller payout | $901.00 |
The seller's payout is calculated from the original $950 — not from the $940.50 that arrived in MPay. The gateway deduction does not affect what the seller receives.
Step 3 — Operator net margin
The operator's net margin is the residual left in the holding account after the seller has been paid. The residual splits between the operator and Marketplacer as follows:
| Amount | |
| Amount deposited to MPay | $940.50 |
| Seller payout | −$901.00 |
| Residual | $39.50 |
| Residual split | Amount |
| Operator commission residual (commission + merchant fee − gateway fee) | $39.00 |
| Operator payout margin | $0.20 |
| Operator total share | $39.20 |
Your total share of the residual is $39.20 — made up of the commission residual ($47.50 + $1.00 − $9.50 = $39.00) plus your operator payout margin ($0.20). In this example, the MPay processing fee ($0.50) is collected from the seller and does not reduce your margin.
Note: The gateway fee is absorbed against your commission residual. It is not a deduction visible on your remittance advice. The MPay processing fee and operator payout margin appear as separate line items on the seller's remittance advice.
Summary across three orders
Applying the same logic to three identical orders:
| Component | Total |
| Total deposited to MPay | $2,821.50 |
| Total seller payouts | −$2,703.00 |
|
Total residual
|
$118.50 |
Tip: Your total share of the residual across three orders is $117.60 — made up of the commission residual ($117.00) plus your operator payout margin ($0.60). The commission residual is lower than the combined commission and merchant fee total ($145.50) because the gateway cost ($28.50) is absorbed before funds reach MPay. This is expected behaviour — it is not an error or a shortfall in your commission.
Payout method fees
The payout method a seller selects may affect their net payout. Some methods carry an additional wire fee per payout.
Note: Wire fees are deducted from the seller's payout and appear as a separate line item on their remittance advice. Your available payout methods are agreed with Marketplacer before you commence payouts with MPay.
What the seller sees
From the seller's perspective, the key figures on their remittance advice are their net payout amount and the individual fee line items deducted from it — including the MPay processing fee, operator payout margin, and any wire fee applicable to their chosen payout method. Sellers do not see the operator's commission breakdown or gateway deductions.
For more detail on what appears on a seller's remittance advice, see Remittance reporting with MPay (automated payouts).
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Global Disclaimer
Any payment services available as part of the MPay solution are provided by Airwallex or any of its regional banking partners. No such payment services are provided by Marketplacer itself. You should consider obtaining independent advice before making any financial decisions. Payment services are provided in the UK by Airwallex (UK) Limited, an electronic money institution authorised by the Financial Conduct Authority with registration number 900876, and in the European Economic Area by Airwallex (Netherlands) B.V., an electronic money institution authorised by De Nederlandsche Bank in the Netherlands with licence number R179622.
In Australia, MPay is issued by Airwallex Pty Ltd (registered number 609653312 and AFSL number 487221), with Marketplacer Pty Ltd (ACN 161 625 789) as authorised representative (No. 001317097). Consider the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and Target Market Determination. If the region in which the MPay services are being used is: (a) United States, it is issued by Airwallex US, LLC (registered number 7083651 and NMLS identification number 1928093); and (b) New Zealand, Airwallex (New Zealand) Limited (registered number 8151714 and NZ FSPR number 1001602).
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