Transak is dedicated to being transparent about our pricing and fees. There are four variables that are used to calculate the total amount of cryptocurrency received for the chosen amount of fiat.
Partner fee: P
A percentage charge is applied on the transaction amount on behalf of the partner. This fee is configurable by partners.
Transak fee: T
A percentage charge is applied on the transaction amount on behalf of Transak. This covers the fiat processing costs so is set depending on the chosen payment method: credit/debit card or bank transfer. Our fees are set out here.
Network/Exchange fee: N
These are the blockchain transaction fees or gas that is paid to make the on-chain transfer of the crypto to the user’s wallet address. These fees vary by blockchain network and cryptocurrency, as well as changing over time depending on network demand. This fee is set by the market, not by us.
Exchange rate: R
This is the conversion rate from fiat to cryptocurrency. It is calculated by taking an up-to-date quote of the market rate from multiple pricing services and adding a small slippage percentage. The slippage varies by cryptocurrency and is calculated according to the actual rate we are able to get in the market.
To calculate the total amount of cryptocurrency, C, for the specified amount of fiat currency, F, we calculate the total fees, deduct them from the fiat amount then convert the remainder to cryptocurrency at the market rate. The formula for this is as follows:
C =(F - (F x P% + F x T% + N) x R
So in the example screenshot below where the partner fee is 1% and the payment is a SEPA bank transfer, based on the market rates and blockchain transaction fees at the time:
C = (€1000 - (€1000 x 1% + €1000 x 0.99% + €0.59) x 0.0002482224
C = (€1000 - €20.49) x 0.0002482224
C = €979.51 x 0.0002482224
C = 0.24313632
Note that the market rate and network/exchange fee shown in the widget UI is an estimate. The final cryptocurrency amount the user receives is calculated when the fiat payment is settled.