Invoice Fee Payer
Pronunciation: IN-voys FEE PAY-ur
Also known as: Fee Paid by Payer, Invoice Commission Payer
Definition
Invoice fee payer identifies which party bears a payment invoice's specified service or processing fee: the merchant or the customer. This is a commercial allocation rule, not a universal statement about blockchain gas fees. OxaPay offers a fee_paid_by_payer setting that allows payer-paid fee behavior where supported by the invoice configuration.
Overview
Separate processing commission from blockchain cost
People often say “the payment fee” as though there were only one. A crypto payment may involve a service commission charged by a processor and a blockchain network fee charged for including a transfer. Depending on the wallet and chain, the sender usually pays the network cost to send the transfer. A gateway may separately offer a choice of who bears its invoice commission: the merchant or the customer. OxaPay documents fee_paid_by_payer as an invoice parameter for the payer covering the invoice commission. That is not a promise that all on-chain costs disappear.
How the underlying system works
Fee allocation should be clear before a payer submits a transaction. When the customer bears an invoice service fee, the amount they are asked to pay may differ from the base order price. If the merchant bears it, the merchant's net proceeds can be lower. Either way, the accounting ledger needs to distinguish product revenue, fees and the amount of crypto transferred.
Network fees are separate: sending a transaction on a blockchain often requires a network fee paid in the network's native asset. A merchant fee-payer setting cannot be assumed to cover all blockchain fees, token transfer costs or external wallet charges. Displaying one undifferentiated 'fee' creates disputes and complicates reconciliation.
Two ways to account for the same sale
Imagine a merchant lists a product for $100 and an illustrative processor fee of $1. If the merchant bears the fee, the customer pays the required invoice amount and the merchant's net proceeds may be reduced by $1 under the provider's terms. If the payer bears the fee, the checkout may charge the customer an amount that covers the original commercial price plus the applicable service commission. The exact calculation depends on the provider's pricing and setting; do not hardcode this simplified example as an OxaPay fee schedule. In both cases, the blockchain wallet may also need enough native network currency to send a transaction.
Why the distinction matters at checkout
Displaying “$100” on a product page and a different total on the payment page without explanation can surprise customers. The merchant should clearly disclose any payer-borne commission, show the final amount and record the commercial price separately from fees. Finance needs to know gross revenue, processor charges, exchange differences and net settlement. This setting also affects refunds: refunding the purchase price is not automatically the same as reimbursing network and provider charges. Fee allocation is an explicit commercial rule, not an afterthought.
Further reading and related concepts
Reference documents: OxaPay — Generate Invoice.
Related glossary topics: Crypto Invoice, Network Fee, Gas Fee.
Example
A store lists an item at $40 equivalent and chooses to pay the invoice processing fee itself. The buyer pays the configured total; finance records the gross sale and merchant-borne fee separately from network charges paid by the sender.
Comparison
Invoice fee payer concerns the invoice provider's charging rule; Network Fee and Gas Fee concern blockchain execution costs. The parties bearing these amounts may differ.
Key Takeaway
Document who pays each fee and keep service fees separate from blockchain fees in customer communications and accounting.
Sources
- Generate Invoice | OxaPay Docs — OxaPay (2026-10-18)