What is an integrated fee?

Decoding the Integrated Fee: A Key Consideration for Connected Merchants

In the evolving landscape of online payments, seamless integration is king. Merchants are increasingly reliant on platforms and integrations to connect their systems and streamline their financial operations. GoCardless, a popular platform for recurring payments, is often accessed via these integrations, and understanding the potential associated costs is crucial. This is where the concept of an “integrated fee” comes into play.

But what exactly is an integrated fee, and how does it impact merchants utilizing GoCardless through intermediary systems?

Essentially, an integrated fee is an additional charge that connected merchants may encounter when linking their accounts and utilizing GoCardless functionalities through a third-party platform or integration partner. Think of it as a toll paid for utilizing the intermediary’s infrastructure to access GoCardless’s services.

The Role of the Intermediary

The key to understanding the integrated fee lies in the role of the intermediary. These platforms often offer a suite of features and services beyond just payment processing. They might provide e-commerce solutions, subscription management tools, accounting integrations, or other specialized functionalities. Connecting GoCardless via these platforms allows merchants to leverage these combined capabilities.

However, the intermediary is providing a valuable service: bridging the gap between the merchant’s system and GoCardless. They’ve invested in developing and maintaining the integration, ensuring smooth data flow and functionality. The integrated fee is, therefore, a compensation mechanism for this investment and ongoing support.

Why Integrated Fees Exist:

Several reasons contribute to the existence of integrated fees:

• Platform Development and Maintenance: Building and maintaining a robust integration with GoCardless requires significant resources. The fee helps the intermediary recoup these costs.
• Customization and Functionality: Intermediaries often tailor their GoCardless integrations to specific industries or use cases, providing enhanced functionality beyond the standard GoCardless offering. This added value justifies a fee.
• Support and Onboarding: The intermediary may provide dedicated support and onboarding assistance to merchants utilizing their GoCardless integration. This personalized service contributes to the overall cost.
• Value Added Services: Often the intermediaries offer value added services on top, such as reporting, customisations, and better support.

Understanding the Implications:

For merchants considering integrating GoCardless through a third-party platform, it’s vital to:

• Inquire About Integrated Fees: Always clarify whether an integrated fee applies and understand its structure (e.g., a fixed amount per transaction, a percentage of the transaction, or a monthly fee).
• Compare Costs: Evaluate the overall cost of using GoCardless via different integrations. Factor in the integrated fee alongside the intermediary’s subscription fees and GoCardless’s standard transaction fees.
• Assess the Value Proposition: Determine if the intermediary’s features, support, and specific GoCardless integration provide enough value to justify the integrated fee. Consider whether a direct integration with GoCardless would be more cost-effective.
• Negotiate if Possible: Depending on the volume of transactions and the relationship with the intermediary, there might be room for negotiation on the integrated fee.

In Conclusion:

The integrated fee is a relevant cost consideration for merchants using GoCardless through intermediary platforms. It represents the value provided by the intermediary in facilitating the integration and offering added functionalities. By carefully evaluating the costs and benefits associated with each integration option, merchants can make informed decisions and optimize their payment processing strategy. Understanding the “why” behind the integrated fee empowers businesses to choose the solution that best aligns with their specific needs and budget, ensuring a seamless and cost-effective GoCardless experience.