The "Processing Fee" is the total cost charged per online transaction. It consists of two fees:
Percentage Fee - Charged once, based on the order amount.
Transaction Fee - A flat dollar amount charged based on the number of transactions.
Your organization has two options when determining who is responsible for paying the processing fee.
Option 1: The Customer Pays the Processing Fee
A registrant will pay all the processing fees at the time of registration. The registrant will see a separate, additional line item on their Shopping Cart page of the registration.
Option 2: Your Organization Pays the Processing Fee
If the Customer Pays Processing Fee option is disabled (set to NO), the processing fee is held from the weekly batch deposits made to an organization. If you do not want registrants to see the processing fee line item, your association is responsible for the fee. It will be deducted from your weekly payout amount.
Some organizations will include their processing fee in the Registration Fees by adding to that store item.
How to Calculate Processing Fees
The formula for calculating processing fees is as follows:
(order amount * percentage fee) + (transaction fee * number of transactions).
In these examples, the percentage fee is 3.25%, and the transaction fee is $2.
For an order of $100, the percentage fee is $3.25 ($100*3.25%), and the transaction fee is $2 ($2 * the number of transactions).
If the order is paid in full (one transaction), the total processing fee is $5.25 ($3.25 + $2).
If a payment plan of two installments is chosen, and the order is paid in two transactions, the processing fee is $7.25 ($3.25 + $2*2).
The processing fee for payment plans with three installments is $9.25 ($3.25 + $2*3).
For an order amount of $250, the percentage fee is $8.13 ($250*3.25%), and the transaction fee is $2 ($2 * the number of transactions).
If the order is paid in full (one transaction), the total processing fee is $10.22 ($8.22 + $2).
If a payment plan of two installments is chosen, and the order is paid in two transactions, the processing fee is $12.22 ($8.22 + $2*2).
The processing fee for payment plans with three installments is $14.22 ($8.22 + $2*3).