Introduction

Fee schemes are used in Core Banking to configure fees that are applicable for a product. Therefore, a fee scheme is always part of a product template. New fee schemes can be created, updated an deleted, depending on the fact if they are used or not. A fee scheme can contain one or more fees that can individually be managed.

Fee types

Core Banking supports two types of fees, fixed amount and proportional fees. The difference between the two is that in the former always a fixed, predetermined, amount will be added as a fee, while in the latter a proportional fee depending on the transaction amount to which is it related will be added.

Configure a fee

The name is always required for any fee scheme. Additionally, the majority of the parameters are shared between the fixed amount and proportional fees:

Name	Description
Event type	Denotes for which event in Core Banking the fee should be applied: Payment: this fee will be applied to every payment to the account (service). Payment Account Sweep: this fee will be applied when internal (account sweep) payments are made. Payment Incoming: this fee will be applied only to incoming payments to the account (service). Payment Outgoing: this fee will be applied only to outgoing payments from the account (service). Service Limit: a fixed fee will be applied when a limit of account is passed. State Transition: this fee will be applied when the account (service) changes state, this can be specified for a specific state transition. Term Contract related: this fee can be applied when doing an early closure, early withdrawal and canceling of withdrawal notice.
Payment subtype	A specific fee can be applied to a specific payment subtype (if configured).
Processing rule	Forced: the fee will be debited from the account even if the account (service) will end up with a negative balance. Forgiving: the fee will be debited from the account if there is a sufficient balance. If not there is a recurring mechanism to try it again after a certain amount of time. Strict: the fee will be debited from the account if there is sufficient balance, if not the fee payment will not be processed and fail.
Currency	The currency on this given fee event type.
Lower threshold
Upper threshold

For the fixed amount fees, specifically the following can be configured:

Name	Description
Fixed amount	The fixed amount fee that will be added to the transaction.

For the proportional fees, specifically the following can be configured:

Name	Description
Floor
Ceiling
Rate	Percentage of the amount of the transaction which will be taken as a fee.