Fee models

The Pismo platform allows you to define fee models and apply them to your operations. A fee model is a structure that defines a collection of fees with custom calculations. You can define the method used to calculate the fee, such as a fixed value or a percentage.

Processing codes

Once a fee model is created, you can apply it to financial operations within an organization , program, or account based on processing codes, which identify an operation, such as purchases or debits. Each financial operation within the platform has its processing code. Some you can configure, while others are fixed in the card network flow. Talk to your Pismo representative to get, or create, processing codes.

Note: The fee is ignored if the operation doesn't match the defined processing codes.

Fee models

Pismo supports the following fee models as indicated with these fee model enums:

  • FIXED - Applies fixed amount fees to specified transactions.
  • GREATER - Applies a fixed or percentage fee amount to specified transactions depending on which is greater.
  • PERCENTAGE - Applies a percentage fee amount to specified transactions.
  • DAILY_PERCENTAGE - Applies a daily percentage to things like credit card cash advances and other loan type products.
  • COMPOUND_INTEREST - Defines when interest is compounded on loan type products.
  • ACCUMULATOR - Collects totals based on specified transaction types and applies fees on a scheduled basis. It is a special case in that you have to call the Create accumulator configuration endpoint to get an identifier for the configuration you can use when creating an accumulator fee model.
  • PRICE_TABLE - Brazil only. Applies fees to installments - different fees can be applied to different installments.
  • AGING - Brazil only. Determines how fees are calculated and applied to investments over time.
  • IOF - Brazil only. Determines how IOF (Brazilian tax) taxes are calculated for investments.

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One fee model

Only one fee model can be applied to an organization, program, or account at a time.

IOF fee model

The IOF tax in Brazil is a tax on financial transactions. It bears some similarity to the capital gains tax in the United States. Like the capital gains tax, it is regressive, that is, investments that are held for a longer period of time are taxed at a lower rate than those held for a shorter period of time.

According to the provisions of Decree 6,306/2007, IOF on securities applies in accordance with a regressive table that varies proportionally to the period of the investment, with such period limited to 30 days. In other words, IOF on securities only applies to the redemption, cession or refinancing of investments before the abovementioned period.

The following details table details how investment gains are taxed over a 30 day period:

Image detailing how investment gains are taxed over a 30 day period

IOF fee model example

The following shows an example of how this would be applied.

Investment: $1000
Interest: 1% per day

Day (Aging)IncomeIOF rateIOF taxIncome after tax
1$1096%$9.6.$ 0.4
10$104.6266%$69.05$35.57
30$2500%$0$250

Example fee model payloads

You can find sample payloads for each fee model type in the Create fee model endpoint:

Image showing example fee model payloads.