# Pass-through fees
> Offset processing costs with pass-through fees that add transparent surcharges to customer payments. Configure fee structures via API or let Payabli calculate them automatically on hosted payment solutions
Pass-through fees allow the merchant to add a fee to the payor to offset the cost of processing. Payabli allows partners to submit a fee via API, or automatically calculate and apply the fee on Payabli's hosted payment solutions, like payment pages and virtual terminals.
## Considerations
Keep these considerations in mind when working with pass-through fees in Payabli.
* Card networks govern fees. Before you decide on your fee strategy, talk with the Payabli team to learn about best practices.
* Payabli helps you configure fee structure during merchant boarding.
* You must contact Payabli support to change fees or configuration options.
* Fees are non-refundable. To prevent disputes, Payabli recommends letting your customers know this before they pay.
## Fee configuration
In addition to setting a percentage or dollar amount for fees, there are other configuration options. Contact Payabli to change these settings. See the [API transaction examples section](#api-transaction-examples) for examples of how these settings work.
| Setting | Description |
| :-------------------------------------- | :---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| *Absorb difference?* | If `true`, when a `serviceFee` that's less than the paypoint's configured fee is passed in a transaction, the merchant absorbs the difference. The default setting is `false` |
| *Accept greater value allowed for fee?* | If `true`, the system accepts `serviceFee` values on transactions higher than the amount configured in the paypoint's settings. The default setting is `true`. |
There's a additional setting that allows you to override fee settings as needed. Reach out the Payabli team to discuss whether this option is right for your merchants.
## Fees with API transactions
To charge a fee when running transactions via an API request or an embedded component, you must include the `serviceFee` value and a `totalAmount` value that includes the transaction amount plus the pass-through fee. The `serviceFee` is always a dollar amount, not a percentage.
If Payabli API receives `totalAmount` and `serviceFee`, the system compares the values to the pricing configuration for the paypoint.
System compares these values with configuration settings based on calculated `serviceFee` amount:
* If `serviceFee` is equal to the calculated value from the pricing configuration, then the transaction goes through. Payabli compares to 2 decimals and accepts a `serviceFee` plus or minus 1 penny.
* If `serviceFee` is greater than the calculated value from the pricing configurations, and if “Accept Greater value allowed config” is true, the pass-through fee goes through. If false, then entire transaction is rejected with return code `5006`.
* If `serviceFee` is less than the calculated value from the pricing configuration, and “Absorb difference?” is `true` then the pass-through fee transmitted is processed, but the merchant absorbs the price difference. If false, then entire transaction is rejected with return code `5005`.
### API transaction examples
#### Absorb fee example
In these examples, a 3% pass-through fee configured for the paypoint.
**Example 1:**
With the Absorb fee configuration option set to `true`, the merchant runs a transaction with a \$100.00 subtotal, plus a \$1.00 pass-through fee. The payor pays \$101.00 total. This leaves the merchant to pay the \$2.00 difference. \$98.00 is transferred to the merchant when the batch is funded.
**Example 2:**
With the Absorb fee configuration option set to `false`, the merchant sends a pass-through fee of \$1.00 with the transaction. The API returns a `5005` error code because the fee sent is less than the amount configured at the paypoint level. The system expects a 3% fee, which would equal \$3.00 on the \$100.00 subtotal, and the paypoint isn't set up to absorb a fee difference.
#### Fee greater than configured fee example
In these examples, a 3% pass-through fee configured for the paypoint.
**Example 1:**
The *Accept greater value allowed for fee?* configuration is set to `true`. The merchant makes a transaction via the API. The subtotal is \$100. According to the paypoint's fee setting, the fee should be equal to \$3.00. Instead, the merchant adds a \$5.00 pass-through fee, for a grand total of \$105.00. This pass-through fee equals 5%. The fee is accepted and the transaction goes through. The merchant receives \$100.00 when the batch is funded and the payor is charged \$105.00.
**Example 2:**
The *Accept greater value allowed for fee?* configuration is set to `false`. You make a transaction via the API. The subtotal is \$100.00. You add a \$4.00 fee, for a grand total of \$104.00. This fee equals 4%. The pass-through fee is rejected with a `5006` error code, and the transaction doesn't go through.
## Fees with UI transactions
Configuring fees at the paypoint level automatically applies the fees to every transaction the paypoint runs using any of Payabli's hosted payment solutions. You only need to explicitly send pass-through fee amounts when making transactions using the API or embedded components.