All Collections
Transactions
Setting up transactions
What is the minimum transaction size
What is the minimum transaction size

The minimum transaction size is the lowest amount possible to transact through your marketplace.

Sharetribe avatar
Written by Sharetribe
Updated over a week ago

The Minimum transaction size helps you avoid losing money on small transactions. You can set the minimum transaction size at Transactions > Minimum transaction size.

In practice, the minimum transaction size is enforced by determining the minimum listing price that sellers can add to their listings.

For example, if you set the minimum transaction size in your marketplace as $10, what you are doing is setting the minimum listing price. Providers won’t be able to list an item below this set price of $10, even if the expected or average transaction size would larger. The validation is done at listing creation, and not at the transaction level.

Why do I need a minimum transaction size

Like most other payment gateways, Stripe will take a fee from each payment on your marketplace. Since the Stripe fees are charged to the marketplace and not the buyer or seller, it is important to set the minimum payment amount allowed to be paid through your marketplace. This is because transaction sizes below a certain threshold could result in you losing money per transaction when Stripe fees are applied.

This threshold depends on the country you are operating in, as Stripe fees are country dependent. You can learn more about Stripe fees for your country on Stripe's website here. You are using Stripe Connect with Custom accounts on Sharetribe.

You may choose to lose money on transactions if you wish. Stripe will charge your account to cover any shortfall between your commission earnings and Stripe fees.

Did this answer your question?