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Donor paid processing fees

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  • Donor paid processing fees

    We had an event this week where our donors were choosing to pay the processing fee, so we added it to the swiper1 app as an additional fee (3.77% with .37). ProPay is charging the 3.77% also on the additional fee not just the item fee. How do we set it up so the donor can pay the processing fee? Example - donor donates $60,we charge $60 plus the additional fee of $2.62. ProPay is charging percentage for $62.63 instead of just $60 so our gross is $59.91. this was not the issue before the gateway changed to ProPay. Any suggestions??

  • #2
    Hi @KMartin,

    I know that when you get down into the math of the fee structure, that when you use the "Additional Fee" feature - your reported numbers come back as being slightly larger than the 3.75% that you expect.

    There is no way for us to add an amount to the donation form that is 'excused' from the 3.75% fee. We are not actually the bank - we are the company that is providing the software for you to interact with the bank (merchant account), albeit that is is our "partner" bank. The best we can do is provide a feature that can let you offer that option to your donors in some way.

    So, when someone makes a $100 donation, and your additional fee option is set to match our fee structure: add 0.37 + 3.75%, the bank is assessing the fee on THAT total: $104.12.

    You set what that fixed amount and/or percentage in CONNECT's Campaign Details: we aren't suggesting that the feature covers the fees, only that you can use it that way if you choose.

    You say that this was not the case prior to Propay, but I think you will find that this is because the reporting is different - so you're noticing the issue now.
    Propay assesses the fees before they are deposited into your account, and provides a breakdown of the fees for each transaction, rather than withdrawing the fees at the end of the month. It's easier to see that the fee charged per transaction doesn't line up with your expectations. Before, the fees were withdrawn at the end of the month as a lump sum, and when you calculated the percentage to verify that it truly was 3.75% - you were calculating based on the total deposited (which already included the additional fee), not the total that the donors perceived as the "donation" portion of their transaction.

    There is a "soft cost" to using the additional fee feature - it makes bookkeeping more difficult. You just have to weigh that against the benefit you get by offering that option to your patrons.

    Incidentally, there was no way to allow you to stay on the old system - the bank merged with a larger bank, and the merged organization opted to migrate all their customers to Propay.
    There are benefits to the new structure too - but it's similar to changing your phone plan, there's tradeoffs.

    I hope that explains what is happening, and empowers you to see how your numbers do line up.

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    • #3
      Thank you for clarifying. This will help us plan in the future.