The Fee Withholding Summary outlines how service fees for the next billing are assessed for eligible batches. Authorize.net generates this summary each time it identifies service fees that need to be withheld from your account. This summary aids in your reconciliation process.

Information Provided in the Fee Withholding Summary

• Batches Eligible for Billing: These are batches that have settled successfully but haven't been billed yet. Service fees for the payment gateway are being assessed for these batches.
• Transaction Count Statistics: These are statistics for the types of transactions for which service fees should be withheld. This typically includes charge and refund transactions.
• Dollar Volume Statistics: This is the dollar volume per transaction type for transactions included in the eligible batches.
• Fee Summary: This section provides a breakdown of the usage fees for your payment gateway account, including:
  • Returned Item: Any returned items included in the eligible batches and the service fees assessed.
  • Chargeback: Any chargebacks included in the eligible batches and the service fees assessed.
  • Batches: The number of eligible batches and the batch fees assessed.
  • Per-Transaction Fee (Tier Type): Information about the pricing structure (Cumulative or Stepped Tier) used to calculate per-transaction fees assessed for transactions included in the eligible batches.
  • Discount Rate (Tier Type): Information about the discount rate structure (Cumulative or Stepped Tier) used to calculate discount rate fees assessed for transactions included in the eligible batches.
• Total Usage Fees for Batches Eligible for Billing: This is the total dollar amount of service fees that should be held in Billing Reserve for eligible batches.
• Funds Withholding Calculation: This is the amount of funds that are being held for service fees related to eligible batches. The amount held depends on the amount of funds in your account's Billing Reserve at the time the Fee Withholding Summary is created. Funds in your Billing Reserve are applied toward the amount of service fees that should be held for batches eligible for billing. Any remaining amount of service fees is then held. If the amount of funds available in your Billing Reserve is greater than the total amount of service fees that should be held for eligible batches, the remaining funds will be released.

Tip for Reading the Fee Withholding Summary

When viewing fee withholding summaries, remember that batches may not always be from the same or current billing cycle, and not all batches in the current billing cycle will be listed. This is because the Fee Withholding Summary only considers batches that have been successfully settled, but for which billing has not yet been applied.