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

# Fees & settlement

> How fees are split, when they're charged, and how funds settle.

## Who pays the fee

Every escrow carries a `whoPays` field that determines how the Payluk fee is
split:

| `whoPays` | Effect                                                   |
| --------- | -------------------------------------------------------- |
| `buyer`   | The buyer pays the full fee on top of the escrow amount. |
| `seller`  | The fee is deducted from the seller's payout.            |
| `both`    | The fee is split between buyer and seller.               |

The computed fee is returned as `fee` on the escrow when you create or edit it.

## What the buyer is charged

When funding via [Pay escrow](/api-reference/payments/pay-escrow-buy), the buyer
is charged the **escrow amount plus their share of the fee**. For example, an
escrow of `1,000,000` with a `25,000` fee split may charge the buyer
`1,012,500`.

## When settlement happens

<CardGroup cols={2}>
  <Card title="Standard escrow" icon="lock">
    The full amount (net of the seller's fee share) is released to the seller
    when the buyer confirms delivery, or when the seller successfully claims
    funds after the delivery window.
  </Card>

  <Card title="Milestone escrow" icon="list-check">
    Each confirmed milestone releases its **net share**: the milestone amount
    minus its pro-rata portion of the seller fee. Commission is finalised when
    the last milestone releases.
  </Card>
</CardGroup>

## Refunds

When a dispute is
[resolved](/api-reference/disputes/resolve-dispute) in the
buyer's favour (`status: REFUNDED`), funds are returned to the buyer's wallet
and the escrow closes.

<Note>
  All amounts in the API are integers in the major currency unit (NGN). There are
  no decimal/kobo sub-units in request or response bodies.
</Note>