Fee Model & Settlement Mechanism

OwlPay Harbor operates on a B2B Billing Model. All service fees are billed directly to the Application, and no fees are charged to your end-users (Customer).

Instead of real-time balance deductions, we utilize a Netting Settlement approach, where all fees and commissions are consolidated and settled at the end of each billing cycle.

1. Fee Structure

The total cost of using the platform consists of two components billed by OwlPay to the Application:

• Platform Take Rate (%): A percentage-based service fee charged by OwlPay Harbor on the Total Transaction Amount.
• Processing Fee: A fixed fee charged per successful transaction.

2. The Logic of "Commission"

When you initiate a transfer on behalf of your customer, the commission parameter determines the final payout amount to the beneficiary and your own revenue.

• Full Payout (Default): If commission is set to 0, the beneficiary receives the full amount.
  • Example: A 1,000 USDC transfer results in a 1,000 USD payout.
• Custom Commission: If you set a commission, that amount is deducted from the transfer principal. This amount is recorded as your revenue and will be credited to you during the monthly settlement.

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Important:

Regardless of whether you set a commission, OwlPay will charge the Application the agreed Service Fees (Platform Take Rate + Processing Fee).

3. Workflow: From Quote to Settlement

Step 1: Request a Quote

Define the transfer details and your desired markup via the /v2/transfers/quotes endpoint.

curl --location '[https://harbor-sandbox.owlpay.com/api/v2/transfers/quotes](https://harbor-sandbox.owlpay.com/api/v2/transfers/quotes)' \
--header 'Accept: application/json' \
--header 'Content-Type: application/json' \
--header 'X-API-KEY:{{YOUR_API_KEY}}' \
--data '{
    "source": {
        "country": "US",
        "chain": "ethereum",
        "asset": "USDC",
        "type": "individual"
    },
    "destination": {
        "country": "HK",
        "asset": "USD",
        "amount": 3000,
        "type": "individual"
    },
    "commission": {
        "amount": 10,
        "percentage": 0
    }
}'

Step 2: Initiate a Transfer

Once you have obtained a quote_id, use this endpoint to initiate the actual fund movement. At this stage, OwlPay records the transaction details—including the commission and the applicable service fees—for the end-of-month (EOM) netting process.

curl --location '[https://harbor-sandbox.owlpay.com/api/v2/transfers](https://harbor-sandbox.owlpay.com/api/v2/transfers)' \
--header 'Content-Type: application/json' \
--header 'Accept: application/json' \
--header 'X-API-KEY: YOUR_API_KEY' \
--data '{
    "on_behalf_of": "{{YOUR_CUSTOMER_UUID}}",
    "quote_id": "{{QUOTE_UUID}}",
    "application_transfer_uuid": "{{YOUR_APPLICATION_TRANSFER_UUID}}",
    "source": {
        "payment_instrument": {
            "address": "0x4B20993Bc481177ec7E8f571ceCaE8A9e22C02db"
        }
    },
    "destination": {
        "beneficiary_info": {
            "beneficiary_dob": "1990-01-01",
            "beneficiary_id_doc_number": "12345678",
            "beneficiary_address": {
                "street": "xxx 1234th Ave S",
                "city": "Minneapolis",
                "state_province": "MN",
                "postal_code": "55416",
                "country": "US"
            },
            "beneficiary_name": "John Doe"
        },
        "payout_instrument": {
            "bank_name": "The Hongkong and Shanghai Banking Corporation Limited",
            "account_holder_name": "CHAN TAI MAN",
            "account_number": "123456789012",
            "swift_code": "HSBCHKHH"
        },
        "transfer_purpose": "SALARY",
        "is_self_transfer": true
    }
}'

4. Monthly Settlement & Netting Logic

OwlPay Harbor operates on a post-payment settlement basis. The Application is not required to maintain a real-time account balance. Instead, OwlPay reconciles all transactions at the end of each billing cycle using a Netting Calculation.

The Settlement Formula

The final amount moved between OwlPay and the Application is calculated as follows:

Formula: Net Settlement Amount = Total Commissions Earned - Total Harbor Fees

Scenario A: Application Net Cost (Low Commission)

In this case, the Application sets a low commission, choosing to absorb part of the service costs.

Assumptions:

• Transaction: $3,000
• Application Commission: $10
• Harbor Fee: 0.5% Take Rate ($15) + $1 Processing Fee = $16

Scenario B: Application Net Profit (High Commission)

In this case, the Application sets a higher commission to cover costs and generate revenue.

Assumptions:

• Transaction: $3,000
• Application Commission: $50
• Harbor Fee: 0.5% Take Rate ($15) + $1 Processing Fee = $16

5. Key Integration Details

• End-User Pricing: Your customers (end-users) are never billed by OwlPay. You decide how much commission to charge them via the API.
• Full Payouts: If you do not set a commission (0), the beneficiary receives the full $3,000, and the service fees are recorded as a liability for your end-of-month settlement.
• Reconciliation: All fees and commissions are linked to your application_transfer_uuid, allowing your finance team to reconcile every penny via our reporting tools.

Please don’t hesitate to contact us at [email protected].