How are fees calculated?

Imagine a donor is interested in contributing $100, and they decide to cover the associated fees so that your organization receives a precise net amount of $100.

When determining the applicable fees, we will consider the processing fees, which are set at 2.9% plus a fixed charge of $0.30, along with a platform fee of 3%.

Credit card processors determine their fees based on the total amount being processed. To ensure your organization receives the desired net amount, the processing fees are calculated in relation to that target. Below is the formula used by processors to establish the total charge needed to achieve your specified net goal.

In this example, we will input the relevant details to illustrate the calculation. The donor aims for the organization to receive $100. Given that the platform fee is 3%, which amounts to $3, our target after accounting for the payment processor fees will be $103.

Hence:

P-goal = $103

F-fixed = 30c = $0.3

F-percent = 2.9% = $0.029

So the total charge (P-charge) would need to be = (103+0.3)/(1-0.029) = $106.39

And so you can also conclude that the credit card fees to be applied to the payment would be $3.39.