How to Record the Merchant Fee Charged by Tabby or Tamara
Accounting for the BNPL provider's transaction fee deducted from the merchant settlement.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| BNPL Merchant Fee Expense | Expense (+) | 18.00 | - |
| Receivable: BNPL Provider | Asset (-) | - | 18.00 |
💡 Accountant's Note
BNPL providers charge merchants a fee (typically 3-8%) for the convenience of offering instalment payments. This is a selling expense deducted before the merchant receives their settlement.
Practitioner & Systems Framework
💻 ERP Architecture
Parse BNPL settlement statements to extract the fee rate applied per transaction. Record the fee as a deduction against the outstanding Receivable: BNPL Provider balance. Track BNPL fees as a percentage of BNPL-channel GMV to compare the cost of BNPL vs. other payment methods. High BNPL adoption in MENA (Tabby fees run 3–6%) meaningfully impacts payment cost per order.
⚠️ Audit Flags
BNPL fee rates can change — verify the rate applied in each settlement matches the current merchant agreement. Unexpected rate increases should be flagged to management. Confirm total fees reconcile to the difference between gross BNPL receivable recorded at sale and net cash received on settlement.
📄 Required Documentation
BNPL settlement statement showing fee breakdown, merchant agreement with current fee rate schedule, BNPL receivable reconciliation (gross receivable − merchant fee = net cash received), and monthly BNPL cost-as-percentage-of-GMV report.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.