The system must provide for a charging mechanism [1] that can perform the following functions:
- Interest Calculations
- Adhoc Fees
- Monthly Fees
- Transaction Fees
- Commissions (negative fee)
- Fee Reversals
All fees must be able to be applied in groups and individually to :
- cardholder
- merchant
- employer
- any other participating party (nominated account)
Fees must be able to be applied during any period viz. grouped together in fee groups and applied daily, weekly, monthly, annually etc.
Examples:
- Annual Card Fee
* consists of a once off fee + a tax amount
Fees must have descriptions and a coding systems that allows historical checking of fees ie. to track fees that have been obsoleted => cannot reuse a previous fee code.
Fees can be applied negatively ie commissions can be applied to provide "kickbacks" for merchants or collectors etc.
A generic fee structure should be able to cater for charging Bill Issuers, Collectors, Airtime Merchants, Utility Vendors etc… [bench mark against www.easypay.co.za]
Fees groups should be applied by default and then special cases, can be applied which over-ride the fees as defined in the general fee method.
Fee discount and loading should also be possible.
Any fee will be a combination of a fixed and percentage governed by fee tiers.
Individual Fees must be differentiated by code so that different tax regimes can be applied ie. non-VAT-able fees vs. VAT-able fees/commissions/dividends etc…
All fees must be post-able on the host system so that third party processes eg. volume based fees/discounts can be applied. When generating fees/commissions these must be able to be applied
individually or grossed up into a single posted transaction. When transaction grossing is applied a separate detailed fees schedule must be produced that can be requested from the host when statements are produced or printed.
All fee configurations/changes must be logged and be auditable. Exception reporting must be produced to prevent abuse of the fee system.
