# Fee Models

Glomo offers two flexible pricing models to suit your business needs. You can either absorb the payment fees yourself or
pass them on to your customers.

## Merchant fee bearer (Default):

In this model, the merchant absorbs Glomo’s transaction fees. The merchant's account is credited with the net amount
after fees are deducted from the payment.


Example:
If a customer pays $100 and the fee is 2%, Glomo deducts $2, and the merchant receives $98.

## Customer fee bearer:

In this model, the customer pays Glomo’s fee as a convenience charge added on top of the payment amount. The merchant
receives the full payment amount as specified.


Example:
If the merchant sets the payment amount at $100 and the fee is 2%, Glomo charges the customer $102 and the merchant
receives the full $100.

## Comparison

| Line Items | Merchant fee bearer | Customer fee bearer |
|  --- | --- | --- |
| Payment Amount | 100 USD | 100 USD |
| Glomo's transaction fee of 2% | 2 USD | 2 USD |
| Amount collected from customer | 100 USD | 102 USD |
| Amount credited to merchant balance | 98 USD | 100 USD |


## How the Customer Fee Bearer Model Works at Checkout

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    To activate the Customer Fee Bearer model on your account, please reach out to us at
      
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        support@glomopay.com
      
.