# Source: https://polar.sh/docs/merchant-of-record/fees.md

> ## Documentation Index
> Fetch the complete documentation index at: https://polar.sh/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees

> Transparent fees at a 20% discount vs. other MoRs

## Transaction Fees

All transactions on Polar come with a small fee of 4% + 40¢ - applied to the entire transaction amount.

Polar is currently built on Stripe, and we cover their 2.9% + 30¢ fee from ours. However, they impose a few additional fees for certain transactions that we need to pass on.

### **Additional Fees**

* +1.5% for international cards (non-US)
* +0.5% for subscription payments
* *We also reserve the right to pass on any other fees Stripe might impose in the future*

**Example**

Let's look at an example breakdown with all these additional fees applied. Below is a payment of a \$30 subscription from Sweden (25% VAT).

| Item                           | Amount     |
| ------------------------------ | ---------- |
| Product Price                  | \$30       |
| VAT (25%)                      | \$7.5      |
| **Total Transaction Value**    | **\$37.5** |
| Transaction Fee (4% + 40¢)     | \$1.9      |
| International Card (+1.5%)     | \$0.56     |
| Subscription (+0.5%)           | \$0.19     |
| **Total Fees (Before Payout)** | **\$2.65** |

### Refunds

You can issue both full or partial refunds on Polar to your customers. However, the initial transaction fees are not refunded to you since credit card networks and PSPs charge them regardless of a future refund.

Please note: Polar reserves the right to issue refunds at our own discretion up to 60 days after the purchase as part of our efforts to continuously and proactively reduce disputes & chargebacks which costs you \$15/dispute. We only leverage this right for this purpose and in the interest of reducing chargebacks and fees for you.

### Dispute/Chargeback Fees

Sometimes, customers can open a **dispute/chargeback** via their bank for a purchase. **Disputes cost \$15 per dispute** regardless of outcome and is deducted from your balance directly. This fee is charged by the underlying credit card networks & PSPs regardless of outcome and therefore something we cannot refund.

However, we continuously work to proactively reduce the rate of chargebacks across Polar to be at or lower than industry standards.

Credit card networks impose monitoring programs, penalties and higher chargeback costs for sellers with high chargeback rates (\~0.7%+). Since Polar is the Merchant of Record, we therefore always monitor and proactively prevent our rate coming close to these thresholds.

Therefore, we might need to intervene and even suspend your account unless swift and proactive measures are taken to reduce chargebacks to an acceptable industry standard.

## Payout Fees

While payouts may incur fees charged by our payout provider (Stripe), Polar does not add any extra fees or markup. These are strictly Stripe’s fees, and Polar does not profit from them.

In addition, Polar offers manual withdrawals for developers. Keeping you in control of when to issue payouts.

*Unless you have a Polar balance that you haven't withdrawn for several months, at which point we'll eventually need to trigger a payout on your behalf.*

**Fees (Stripe)**

* \$2 per month of active payout(s)
* 0.25% + \$0.25 per payout
* Cross border fees (currency conversion): 0.25% (EU) - 1% in other countries.

## Volume pricing

Large or fast-growing business? We can offer custom pricing to better fit your needs. [Reach out to us](/support).