MFC Commissions Engine
MFC uses Stripe to manage payments and commissions.
On every order, the transaction is split between 2 wallets: the seller wallet, and the MFC wallet for the commission fees.
The seller receives the difference between the transaction amount and MFC commission fees.
The seller commissions rules are defined during the organization set up.
Commission Types
Two types of commissions exist on MFC:
Fixed flat fee commission - A flat commission amount applied on each quote line.
Percentage Commission - A percentage amount applied on the amount without taxes, after discount.
Commission Slices and Calculation base
Different commissions can be configured by amount slices and by service category.
Amount slices: Per order
The amount excluding taxes of the order is multiplied by the commission rate.
When combined with commissions per category, quote line amounts excluding taxes are grouped by category and compared with the commission slices.
Amount slices: Per turnover
For commission slices based on the organization turnover, the commission engine adds up all the payments validated between the start of the subscription and the date of the current order.
Turnover slices, therefore, correspond to the sum of the amounts paid (including taxes, marketplace fees, etc.) during the subscription period.
When combined with commissions per category, the turnover base calculation is unchanged (sum of all the validated payments no matter the categories) but the commission rate for a slice can be configured for specific service categories.
Subscriptions have 4 durations: 1, 3, 6 months, or one year. The renewal of a subscription starts a new accumulation period.
Minimum commission amount
A minimum commission amount can be set. If the calculated amount is less than the minimum amount, the commission linked to the payment of an order will be equal to the minimum amount:
If the commission amount excluding VAT of an order is less than the minimum commission, a commission line will be added to reach the minimum commission amount.
When the minimum commission is higher than the order amount. 100% commission will be applied.
VAT on the commission amount
The amount of the commission is calculated excluding tax. Then a VAT amount is added to the amount.
A VAT rate is defined by MFC for each seller. The VAT rate on the commission is not related to the order location.
Commissions and Refunds
When a claim is closed, the customer payment is refunded and a commission refund is created.
Total Refunds
Stripe, our Payment Service Provider (PSP), takes a fee on every payment transaction. This fee is collected on payment capture whether the transaction is later refunded or not.
When a total refund is issued after a claim, MFC refunds the whole amount to the customer and charges the seller for the Stripe payment fee.
Partial Refunds
For claims with partial refund, the amount of commission to be refunded is prorated
For example: For an order amount of 1000 euros (including tax), and a calculated commission of 200 euros (including tax on the commission amount). If a refund of 350 euros takes place, the commission refund will be 350*200/1000 = 70 euros.
This refund amount is then compared to the Stripe fee.
If the difference between the initial commission and the commission reimbursement (= the rest of the commission) is less than the Stripe fee, it returns the initial commission minus the Stripe fee.
For example: For an order amount of 1000 euros (including tax), and a calculated commission of 200 euros including 20 euros of Stripe fees. If a refund of 990 euros is issued, the commission refunded should be 990*200/100 = 198 euros. But the remaining commission of 2 euros (200 - 198) is less than the Stripe fees. As a result, the refunded commission will be 180 euros (200 - 20).
Commission Payouts
Transactions made by sellers are accumulated in a wallet managed by Stripe. MFC triggers automatic payouts for eligible transactions several times a month.
How is the money transferred?
Seller payouts are managed by Stripe using Bank Transfers. The money is sent to the bank account configured during the Stripe onboarding process. The currently configured bank account can be found from the MFC Seller back office by clicking on the “KYC account link”. https://app.myflightconnect.com/organization/legal-information
What amount is available for payout?
The amount available for payout is the sum of the eligible order transactions minus MFC commissions.
What orders are eligible for payout?
To be eligible for payout, an order must match these criteria:
For regular orders:
The order must be in the delivered status
The order must have a payment succeeded
The order payment order must have been captured for more than 7 days.
For an order canceled with a cancellation policy:
The cancellation policy must be applied
The order must have a payment succeeded
The order payment must have been captured for more than 7 days.
For an order claimed with a partial refund:
The order status must be “claimed”
The claim must be closed
The order payment must have been captured for more than 7 days.
When are the payouts triggered?
MFC automatically triggers the payout process 5 times per month. They are currently scheduled on the 1st, 7th, 14th, 21st, and 28th of each month.
How long does it take for the money to be transferred to the seller's bank account?
The usual lead-time for bank transfers is 1 to 2 days. In some cases, it can take up to 7 days for the bank transfer to be received.
Where to see the payouts?
Payouts are not directly visible in the seller’s back office. But a payout is always linked to a commission invoice. A commission invoice is created for each payout.
Commission invoices are listed on the “Accounting” page available in the “Informations -> Organization” menu. Click here https://app.myflightconnect.com/organization/accounting
The list of orders payment included in a payout is visible on the commission invoice.
For each order, the MFC commission amount is displayed and the commission rule used for the calculation is shown.