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

# Settlement and commissions

> How transaction import files drive commission calculation and the Transaction Commission (TCOM) report.

After you submit a transaction import file, Fexco processes the
transactions and calculates commission for each DCC conversion.
The results are delivered as a [Transaction Commission (TCOM)](#the-tcom-file)
file, a CSV report that breaks down the commission earned on
every DCC transaction.

## From transaction import to commission

Transaction import and settlement are linked but separate
processes. Transaction import reports what happened at the
point of sale. Settlement determines how much commission each
party earns from those transactions.

The following steps describe how a transaction file moves
through the system from submission to commission delivery.

1. **Submit a transaction file**: You send a daily transaction file to Fexco via
   [SFTP](https://docs.fexco.com/dcc/guides/getting-started/security-setup.md#secure-file-transfer-sftp).
   The file contains every card transaction (both DCC and
   domestic) from your terminals, ATMs, or eCommerce channels.
   See
   [How transaction import works](https://docs.fexco.com/dcc/guides/transaction-import/how-it-works.md)
   for the full submission process.

2. **Fexco validates and processes the file**: Fexco validates the file structure and integrity, then loads
   the transactions into Mercury. Accepted transactions become
   available for reporting in Fresh Insights.

3. **Fexco calculates commission**: For each DCC transaction, Fexco calculates the commission
   based on the margin applied during the rate offer and the
   commission split configured in the merchant's
   [template](https://docs.fexco.com/dcc/guides/merchant-boarding/how-it-works.md#templates).
   The commission split determines how the margin is divided
   between the acquirer, the merchant, and Fexco.

4. **Fexco delivers the TCOM file**: Fexco generates a TCOM file and places it in the `Outgoing`
   folder on your SFTP server on an agreed schedule. The file
   contains one record per DCC transaction with the commission
   breakdown.

The following diagram shows the same flow between your system and Fexco.

Click each step to walk through the commission flow

## Settlement types

DCC transactions settle differently depending on how the card
scheme processes the currency conversion. The TCOM file includes
a `Currency type` field that identifies which settlement path
applies.

* **E2E (end-to-end)**: the card scheme settles the
  transaction in the DCC transaction currency (the
  cardholder's home currency). The converted amount flows
  through the entire settlement chain without further
  conversion.
* **NE2E (non-end-to-end)**: the card scheme does not settle
  in the DCC transaction currency. The scheme applies its own
  exchange rate during settlement, which may differ from the
  DCC rate. The
  [XML I-file](https://docs.fexco.com/dcc/guides/transaction-import/build-and-submit/xml-i-file.md)
  can include non-end-to-end settlement data to capture the
  scheme's settlement values alongside the DCC values.

> [!NOTE]
>
> The E2E or NE2E designation is determined by the card scheme and
> currency pair, not by your integration. The TCOM file reports
> which type applied to each transaction.

## The TCOM file

The Transaction Commission (TCOM) file is a CSV report that Fexco
delivers via SFTP. It contains one header row and one detail row
per DCC transaction. The key fields for understanding commission
are:

* **`Gross Base Amnt`** and **`Gross FX Amnt`**: the transaction
  amounts in the base and cardholder currencies.
* **`FX Rate`**: the exchange rate applied to the transaction.
* **`Currency type`**: whether the transaction settled as `E2E`
  or `NE2E`.
* **`Merchant Amnt`**, **`Acquirer Amnt`**, **`Fexco Amnt`**:
  commission amounts for each party, expressed in the settlement
  currency.

For the complete field list, naming convention, and record
ordering, see the
[TCOM file format reference](https://docs.fexco.com/dcc/developer-resources/file-formats/tcom.md).

### Reading commission amounts

Each commission field shows one party's share of the DCC margin
applied at the time of the rate offer. Commission amounts are
expressed in the settlement currency.

For example, in the following `NE2E` transaction, the base and
settlement currency are both KWD. The purchase amount is 5.55 KWD,
and the cardholder paid 71.27 \[CARDHOLDER\_CURRENCY] at an exchange
rate of 12.8423, which includes the DCC margin. The margin on this
transaction is 0.14 KWD, split between the merchant (0.03), the
acquirer (0.06), and Fexco (0.05) according to the commission
split configured in the merchant's
[template](https://docs.fexco.com/dcc/guides/merchant-boarding/how-it-works.md#templates).

| Field | Value | Description |
| :- | :- | :- |
| `Gross Base Amnt` | `5.55` | Transaction amount in the base currency (KWD) |
| `FX Rate` | `12.8423` | Exchange rate offered to the cardholder, including the DCC margin |
| `Gross FX Amnt` | `71.27` | Amount the cardholder paid in their own currency (\[CARDHOLDER\_CURRENCY]) |
| `Merchant Amnt` | `0.03` | Merchant's share of the margin, in KWD |
| `Acquirer Amnt` | `0.06` | Acquirer's share of the margin, in KWD |
| `Fexco Amnt` | `0.05` | Fexco's share of the margin, in KWD |

## TCOM delivery and SFTP setup

Fexco delivers TCOM files to the `Outgoing` folder on your SFTP
server on an agreed schedule. The same SFTP credentials and
connectivity configured during
[security setup](https://docs.fexco.com/dcc/guides/getting-started/security-setup.md) are
used for TCOM delivery.

If no DCC transactions occurred during the commission period,
Fexco still delivers a TCOM file containing only the header row.

## Next steps

For more detail on TCOM files and troubleshooting transaction
import issues:

* [TCOM file format reference](https://docs.fexco.com/dcc/developer-resources/file-formats/tcom.md):
  full field specification, naming convention, and record ordering.
* [Troubleshoot transaction import](https://docs.fexco.com/dcc/guides/transaction-import/troubleshoot.md):
  file-level and transaction-level rejection codes.


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