Changes to Fee Rounding and ACH/EFT Enums (Lunchmoney Powered by Finix)

Overview

On February 1st, 2025, Finix will deprecate support for Transactional Rounding for Fee Profiles.

No immediate action or code updates are required from Lunchbox at this time. However, these changes may affect your understanding of fee calculations and reporting. Continue reading to learn more.

Rounding Method Changes

Current Rounding Methods

Finix currently supports two rounding methods for fee calculations:

Transactional Rounding:
- Each fee is rounded to the nearest cent before summing.
- Example:
  - Fee 1: $0.4449 rounds to $0.44
  - Fee 2: $0.54599 rounds to $0.55
  - Total: $0.44 + $0.55 = $0.99
Aggregate Rounding:
- Fees are summed first, and the total is rounded to the nearest cent.
- Example:
  - Fee 1: $0.4449
  - Fee 2: $0.54599
  - Total before rounding: $0.99089
  - Rounded Total: $0.99

Upcoming Change

Starting February 1st, 2025, Finix will deprecate Transactional Rounding. All new and historical Fee Profiles will transition to Aggregate Rounding. This change is to ensure consistency in rounding and improve long-term insights and reporting for the customers. Aggregate rounding offers higher precision and aligns with industry standards.

The reason for this change

This update is designed to give you more precise information about transaction fees. By showing whether a fee has reached its maximum, you can better understand and explain how fees are being calculated.

Updates to ACH and EFT Basis Points Enums

ACH (Automated Clearing House): A US-based system that helps move money electronically between banks. It’s commonly used for things like direct deposits, paying bills, or sending money between accounts.

EFT (Electronic Funds Transfer): A broader term for any kind of digital money movement, which includes ACH payments, wire transfers, and other electronic transfers.

Starting February 1st, 2025, Finix will add two new labels (called "enums", short for "enumeration") to help identify fees more clearly:

ACH_MAX_FIXED
EFT_MAX_FIXED

Currently, when a fee limit is set to ach_basis_points_fee_limit or eft_basis_points_fee_limit the calculated fee will always return ACH_BASIS_POINTS or EFT_BASIS_POINTS.

After February 1, 2025, Finix will return:

If the calculated fee is greater than the fee_limit, we will return ACH_MAX_FIXED or EFT_MAX_FIXED
If the calculated fee is less than the fee_limit, we will return ACH_BASIS_POINTS or EFT_BASIS_POINTS