What is a Processing Fee?
The processing fee is the fee charged per online transaction to cover the cost of processing a card payment. The percentage is based on the Order Amount, and the flat dollar amount is based on the number of transactions.
For Example an order with a total amount of $500.00 at a processing rate of 3.5% + $2.00 would incur a processing fee of $19.50 for a payment that was paid in full ($500.00 x 0.035 + $2.00). A payment plan of two installments for this same order amount would incur a processing fee of $21.50 ($500 x 0.035 + $2.00 + $2.00) — an extra $2.00 is charged for the second installment.
You have two options when it comes to this fee:
Option 1: the customer pays the fee at the time of the transaction
Option 2: your organization pays the fee at the time of a deposit (fees are withheld)
To change this setting, go to the Registration tab of the Admin Control Panel and select a registration. Click Edit Registration, then Show Advanced Options. You will be able to edit this setting by selecting Yes or No next to Customer Pays Processing Fee?.
Option 1: The Customer Pays the Processing Fee
Enabling the Customer Pays Processing Fee option (set to YES) means that the transaction rate set by SportsEngine will be automatically calculated in the system and added to the shopping cart page as an additional line item for registrants to pay. When this is turned on, a registrant will pay all of the processing fee at the time of registration.If you elect to pass the processing fee on to your registrants, they will see this listed as an additional line item on the Shopping Cart screen.
Option 2: Your Organization Pays the Processing Fee
If the Customer Pays Processing Fee option is disabled (set to NO), the processing fee will be held from the weekly batch deposits SportsEngine makes to an Organization. If you do not want your registrants to see the processing fee line item, your association is then responsible for the fee. It will be deducted from your weekly payout amount. You may choose to recoup the fee by building it into your program fees or via a late fee, or you may simply absorb the cost.