Tiered Convenience Fees & Fee Caps
Paystand's Fees & Incentives settings now support tiered fee bands and fee caps, giving you precise control over what your payers are charged based on invoice amount.
What's new
You can now configure two types of advanced fee rules:
- Fee cap — Set a maximum dollar amount a payer will ever pay, regardless of invoice size. For example: charge 0.35% on ACH payments, but never more than $3.99.
- Tiered rates — Charge different rates depending on the invoice amount. For example: 2.5% for invoices under $10,000 and no fee at all for invoices $10,000 and above.
You can use these features independently or combine them — and you can configure them separately for Card and ACH payment methods.
If you are not using this feature: your existing fee settings are completely unchanged. A new "Tiered Rates" toggle appears in your plan settings, but it is off by default and has no effect until you enable it.
How fee bands work
When Tiered Rates is enabled, your fee configuration is split into bands. Each band covers a range of invoice amounts and has its own rate and optional cap.
| Field | What it does |
|---|---|
| From ($) / To ($) | The invoice amount range this band applies to. The last band automatically extends to any amount above it (shown as ∞). |
| Rate (%) | The percentage fee charged for invoices in this range. Set to 0% to create a no-fee band. |
| Flat ($) | An optional fixed dollar amount added on top of the percentage. Leave at $0 if not needed. |
| Max Fee ($) | An optional dollar cap for this band. The payer is never charged more than this amount. |
Paystand automatically applies the correct band based on the invoice amount at the time of payment.
Tiered Rates is available for Service Fee mode on Card and ACH payment rails. It is not available for Discount mode.
How to set up tiered fees
Step 1 — Open your Fees & Incentives plan
- Log in to your Paystand dashboard.
- Go to Settings → Payment Experience → Fees & Incentives.
- Click Edit on the plan you want to update — or click Create New F&I Plan to start fresh.
Step 2 — Choose a payment rail and enable Tiered Rates
Inside the plan editor, select either the Card or ACH tab. Make sure the mode is set to Service Fee.
By default the Tiered Rates toggle is off. Your existing Rate and Flat fields work exactly as before when it is off.
Toggle Tiered Rates on to switch to band configuration mode.
Step 3 — Define your fee bands
Once Tiered Rates is on, the single rate field is replaced by a bands table. Each row represents one invoice amount range:
- From / To — Enter the minimum and maximum invoice amounts for this band. The last band's upper limit extends to any amount above it automatically.
- Rate (%) — Enter the percentage fee for this range. To offer a no-fee tier, enter 0.
- Flat ($) — Optional. Enter a fixed dollar amount to add on top of the percentage.
- Max Fee ($) — Optional. Enter a dollar cap so the payer is never charged more than this amount within this band.
Click + Add band to add additional tiers.
Step 4 — Set a fee cap on a band (optional)
To cap fees for a specific band, enter a value in the Max Fee ($) column for that band. You can cap some bands and leave others uncapped — each band is independent.
Example: To charge 0.35% on ACH but never more than $3.99, create one band from $0.01 with Rate 0.35% and Max Fee $3.99.
The Preview table below the bands updates in real time to show how different invoice amounts would be charged under your current configuration. Use it to verify your setup before saving.
Step 5 — Save your plan
Click Save when you are done. The new bands take effect immediately for any new payment processed against this plan.
Configuration examples
Example 1: Simple fee cap (ACH)
Charge 0.35% but never more than $3.99.
| From ($) | To ($) | Rate (%) | Flat ($) | Max Fee ($) |
|---|---|---|---|---|
| 0.01 | ∞ | 0.35% | $0 | $3.99 |
| Invoice amount | Fee charged |
|---|---|
| $100 | $0.35 |
| $500 | $1.75 |
| $1,000 | $3.50 |
| $5,000 | $3.99 (capped) |
| $10,000 | $3.99 (capped) |
Example 2: Tiered rates by amount (Card)
Apply a lower rate for larger invoices.
| From ($) | To ($) | Rate (%) | Flat ($) | Max Fee ($) |
|---|---|---|---|---|
| 0.01 | 999.99 | 2.50% | $0 | — |
| 1,000.00 | 9,999.99 | 1.50% | $0 | — |
| 10,000.00 | ∞ | 0% | $0 | — |
| Invoice amount | Rate applied | Fee charged |
|---|---|---|
| $250 | 2.50% | $6.25 |
| $2,500 | 1.50% | $37.50 |
| $10,000 | 0% | $0.00 |
| $50,000 | 0% | $0.00 |
Example 3: Tiered rates with caps
Combine both — a sliding scale with a safety net on each tier.
| From ($) | To ($) | Rate (%) | Flat ($) | Max Fee ($) |
|---|---|---|---|---|
| 0.01 | 999.99 | 2.50% | $0 | $10.00 |
| 1,000.00 | 9,999.99 | 1.50% | $0 | $50.00 |
| 10,000.00 | ∞ | 0% | $0 | — |
What your payers see
At checkout (when paying an invoice)
When a payer selects a payment method, Paystand calculates the exact fee based on the invoice amount and the band it falls into. The fee is shown in the payment summary before the payer confirms — no surprises.
No changes are visible to the payer in the payment flow beyond the updated fee amount itself.
When saving a card or bank account (tokenize flow — Checkout V5)
If a payer saves a payment method without paying a specific invoice (for use on future payments), the exact fee cannot be calculated in advance because the invoice amount is not yet known. In this case, they will see a general notice that a fee applies to future payments.
In the Paystand Virtual Terminal (NetSuite)
For merchants using the Paystand Virtual Terminal inside NetSuite, the fee label reflects the tiered structure — for example: "Fee varies by amount" — since the terminal can be used for payments of varying sizes.
Frequently asked questions
Will this change my existing fees?
No. Enabling the Tiered Rates toggle on a new or existing plan only affects that specific plan. All existing configurations remain exactly as they are until you choose to edit them.
Can I have different bands for Card and ACH?
Yes. Card and ACH are configured independently within the same plan. You can enable Tiered Rates for one rail and leave the other as a flat rate, or configure completely different band structures for each.
What happens if I turn off Tiered Rates after configuring bands?
Your band configuration is saved in the background. Turning the toggle off switches the plan back to using the single rate and flat fields. If you turn it on again, your previous bands are restored.
Does the fee cap apply per-band or to the total fee?
The cap applies within each band. If an invoice falls in a band with Max Fee $3.99, the payer pays at most $3.99 for that payment — regardless of the invoice amount within that band.
Does this work with all invoice types?
Tiered fees apply to standard invoice payments processed through Paystand. Contact your Paystand account manager if you have questions about specific invoice workflows or ERP integrations.
Is this available for all payment rails?
Tiered fee bands are supported for Card and ACH in Service Fee mode.
My rates are negotiated differently — do I need to use bands?
No. Tiered Rates is entirely optional. If your current flat-rate or percentage setup works for you, there is no reason to change it.
Need help?
If you have questions about configuring your Fees & Incentives plan or want help designing a tiered structure for your use case, contact Paystand Support or reach out to your Customer Success Manager.