SportsEngine charges Management Fees on all orders and invoices as an operational cost for managing and reporting your financials. Your organization has negotiated and accepted the fee rates charged upon joining SportsEngine. Here's how we calculate Management Fees:
Percentage Fee - After applying discounts, a percentage rate is calculated based on the remaining net amount of the order or invoice.
Transaction Fee - An additional fixed fee is multiplied by the number of payment plan installments your members choose at checkout based on the offered payment terms.
These two calculations are added and distributed proportionally across all payment plan installments, including any installments required for upfront fees your organization collects. All management fees are collected at once if a member pays in full.
Your organization has two options when determining who is responsible for paying the management fee.
Option 1: Your Organization Pays the Management Fee
Management Fees are collected from your organization by default. The calculated fee amount will be subtracted from each payment installment when processed. The remaining amount of each payment is deposited into your bank account with the next scheduled payout.
When you choose this method, the Recover fees from your customers checkbox appears unchecked in your Financial Settings.
Option 2: You Recover the Management Fee from your Customer
You can recover Management Fees from your customers by selecting the Recover fees from your customers checkbox in your Financial Settings. When this option is selected, an additional line item in the amount your organization would have paid is added to each payment installment on orders and invoices.
By adding the amount your organization is responsible for as a new line item, you offset the Management Fees. The whole payment amount, minus the additional Management Fee line item, is deposited into your bank account with the next scheduled payout.
Changing Management Fees on Individual Invoices and Registrations
Your organization may want to switch who pays the Management Fee at certain times. You can update who pays the fees when you create new invoices and registrations.
How to Calculate Processing Fees
The formula for calculating processing fees is as follows:
(net order amount * percentage rate) + (number of transactions * fixed rate)
In the following examples, the percentage fee is 3.25%, and the fixed rate is $2.00.
For an order of $100, the percentage fee is $3.25 ($100*3.25%), and the fixed rate is $2.00 ($2.00 * the number of payment plan installments).
If the order is paid in full (one payment), the total Management Fee is $5.25 ($3.25 + $2.00).
If a customer chooses a two-installment payment plan, the Management Fee is $7.25 ($3.25 + $4.00).
If a customer chooses a three-installment payment plan, the Management Fee is $9.25 ($3.25 + $6.00).
For an order amount of $250, the percentage rate is $8.13 ($250.00 * 3.25%), and the transaction rate is $2.00 times the number of payment plan installments.
If the order is paid in full (one payment), the total Management Fee is $10.13 ($8.13 + $2.00).
If a customer chooses a two-installment payment plan, the Management Fee is $12.13 ($8.13 + $4.00).
If a customer chooses a three-installment payment plan, the Management Fee is $14.13 ($8.13 + $6.00).