Transaction Fee Agreement Template for India

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Key Requirements PROMPT example:

Transaction Fee Agreement

"I need a Transaction Fee Agreement for my fintech company that will charge merchants a percentage-based fee for each digital payment processed through our platform, with the agreement starting from January 2025 and including detailed reporting requirements and service level commitments."

Document background
The Transaction Fee Agreement is primarily used in commercial relationships where compensation is tied to specific transactions or activities. This document becomes essential when businesses in India need to formalize fee-based arrangements, particularly in sectors such as financial services, e-commerce, or consulting. The agreement must comply with Indian legal requirements, including the Indian Contract Act, 1872, GST regulations, and where applicable, FEMA guidelines for international transactions. It typically includes detailed fee calculations, payment schedules, service level commitments, and reporting requirements. The document is particularly relevant in situations where variable compensation is based on transaction volume, value, or frequency, and where transparent tracking and reporting of transactions is crucial for fee determination.
Suggested Sections

1. Parties: Identification of all parties to the agreement including full legal names, addresses, and registration details

2. Background: Context of the agreement, business relationship, and purpose of the transaction fee arrangement

3. Definitions: Defined terms used throughout the agreement, including 'Transaction', 'Fee', 'Payment Period', etc.

4. Scope of Services: Description of the transactions or services for which fees will be charged

5. Fee Structure: Detailed breakdown of transaction fees, calculation methodology, and fee rates

6. Payment Terms: Timeline for payments, invoicing process, payment methods, and late payment consequences

7. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

8. Representations and Warranties: Standard warranties regarding capacity to contract and service quality

9. Confidentiality: Protection of confidential information exchanged during the course of the agreement

10. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

11. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Service Level Requirements: Include when specific performance standards need to be maintained

2. Minimum Fee Guarantees: Include when there's a minimum fee requirement regardless of transaction volume

3. Currency and Exchange Rates: Include for cross-border transactions or multi-currency arrangements

4. Audit Rights: Include when verification of transaction volumes or fee calculations may be necessary

5. Force Majeure: Include when protection against unforeseen events affecting fee generation is needed

6. Non-Compete: Include when restricting parties from engaging in competing fee arrangements

7. Technology Integration: Include when transaction tracking requires specific technical implementation

Suggested Schedules

1. Schedule 1 - Fee Calculation Methodology: Detailed breakdown of fee calculation formulas and examples

2. Schedule 2 - Transaction Types: Comprehensive list of transactions covered under the agreement

3. Schedule 3 - Service Level Metrics: Specific performance indicators and measurement criteria

4. Schedule 4 - Reporting Format: Templates for transaction reporting and fee calculations

5. Appendix A - Technical Integration Requirements: Technical specifications for transaction tracking and reporting

6. Appendix B - Authorized Representatives: List of designated contacts for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Financial Services

Technology

E-commerce

Real Estate

Investment Banking

Business Process Outsourcing

Consulting Services

Payment Solutions

Telecommunications

Professional Services

Relevant Teams

Legal

Finance

Commercial

Business Development

Operations

Compliance

Treasury

Revenue

Partnerships

Accounts

Relevant Roles

Chief Financial Officer

Legal Counsel

Business Development Manager

Commercial Director

Finance Manager

Compliance Officer

Operations Manager

Contract Administrator

Account Manager

Treasury Manager

Partnership Manager

Revenue Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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