How RemitScale's Calculations Work

Fee Calculation Methodology

Standard payment gateway calculators tell you what fee will be deducted after a client pays a given invoice amount. RemitScale operates on a reverse-calculation model: you enter the exact net payout you need to receive in your bank account, and our formula computes the gross invoice total required to cover processing fees and currency conversion spreads.

When calculating gross invoice totals for client-paid fee modes, the calculation function (calculateInvoiceAmount) computes:

Invoice Total = (Target Payout + Fixed Fee) / (1 - Percentage Fee)

Cross-Border Conversion Parameter: When calculating non-USD invoices, the codebase applies a single flat assumption (window.REMITSCALE_CONVERSION_SPREAD = 0.015 / 1.5%) uniformly to every gateway as a general FX spread baseline, rather than using per-provider rates. This parameter is factored into the percentage fee denominator before applying the live market exchange rate:

Non-USD Invoice Total = (Target Payout + Fixed Fee) / (1 - (Percentage Fee + ASSUMED_CONVERSION_SPREAD))

Fee rate parameters are pulled from our published configuration dataset (window.REMITSCALE_GATEWAYS), using standard base rates (e.g. 2.9% + $0.30 for Stripe US domestic, 3.49% + $0.49 for PayPal US commercial). Because actual processing fees vary by merchant account tier, client card issuing region, and volume tiering, detailed fee breakdowns and attribution notes are maintained on our dedicated provider guides:

• Stripe Fee Calculator & Pricing Attribution
• PayPal Fee Calculator & Pricing Attribution
• Payment Gateway Fee Comparison Matrix

Exchange Rate Data

Currency conversion rates on RemitScale are fetched dynamically from open market reference feeds provided by open.er-api.com (ExchangeRate-API), backed by daily fallback reference matrices.

Update Frequency & Market Type: Exchange rate reference feeds use live market exchange rate data, refreshed periodically — approximately every 24 hours based on the current implementation — not real-time tick-by-tick data. Commercial payment providers typically apply a hidden conversion spread (typically 1.5% to 4.0%) above base market exchange rates.

What These Results Mean

All calculations, fee percentages, conversion calculations, and billing totals generated by RemitScale tools are mathematical estimates, not financial guarantees.

Actual settlement amounts received in your bank account may differ from calculated estimates due to several operational variables:

• Provider-specific account tiering and custom volume pricing agreements
• International or cross-border card issuing surcharges (e.g. +1.5% for non-domestic cards)
• Exchange rate fluctuations occurring between invoice generation and client settlement date
• Bank wire transfer intermediary routing charges and incoming wire landing fees

Tax and Legal Content

The tax reserve calculator and fee-absorption clause generator provided within RemitScale tools are informational planning aids, not professional tax or legal advice.

Official Disclaimer: The tools and information on RemitScale do not constitute professional financial, tax, or legal advice. You should consult with a certified public accountant (CPA) or legal counsel to verify actual tax obligations, local compliance requirements, and client contract terms before issuing formal binding billing agreements.

Limitations

To ensure clear expectations and precision, RemitScale explicitly outlines the technical scope and limitations of our calculation engines:

• No Live Gateway API Feed: Tools use published base rate structures, not live authenticated user gateway API tokens.
• No Jurisdiction-Specific Legal Verification: Clause generators provide reference template text and do not verify local jurisdictional enforceability.
• No Guaranteed Settlement Timing: Processing times (e.g. T+2, instant payout) depend on your provider account agreement and bank processing hours.