Processing of Merchant Surcharge Calculated by E-commerce Merchants

<Product enhancement>

We have optimized processing of those e-commerce transactions when buyers pay a "merchant surcharge" for each purchase. This type of fee is supposed to cover processing costs for a merchant and is calculated on the merchant side, unlike the Merchant Service Charge (MSC) which is calculated by Way4 itself. Automated surcharge processing helps to prevent clearing and settlement discrepancies.

For each e-commerce retail transaction, the store can transmit the purchase amount and merchant surcharge amount as two separate data fields to Way4.

If the card issuer and acquirer is the same company, Way4 does the following:

• Debits the purchase amount from the card balance and credits it to the merchant settlement account.

• Debits the merchant surcharge from the card balance and credits it to the merchant's or company's revenue account, or any other Way4 account defined in acquiring settings.

If this card was issued by a third party, Way4 handles the accounting transactions in a different way:

• Sums up the purchase and merchant surcharge amounts, debits their combined value from the reconciliation account of the payment scheme and credits it to the merchant settlement account.

• Debits the merchant surcharge from the merchant settlement account and credits it to the merchant's or company's revenue account, or any other Way4 account defined in acquiring settings.