How are fees calculated?

How is the donor-covered fee calculated?

When a donor chooses to cover transaction fees, BetterUnite calculates the total charge so that your organization receives the exact net amount intended. The platform fee is added to the net goal first, then the credit card processor formula is applied to that combined target — for example, ensuring your organization receives a full $100. The sections below show how that calculation works.

Example calculation: Actual BetterUnite platform fees are set depending on your plan. This is just an example for calculation purposes.

When determining the applicable fees, in this example, we will consider the processing fees are set at 2.9% plus a fixed charge of $0.30, along with an example BetterUnite platform fee of 2.5%. Actual processing fees vary by card processor and may differ from this example. 

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.

Example calculation step-by-step

The donor wants the organization to receive $100. Your actual platform fee may differ — check your account settings. Follow these steps to find the total charge:

1. Add the platform fee to the net goal: $100 + $2.50 (2.5% example platform fee) = P-goal of $102.50
2. Identify the processor fee variables: F-fixed = $0.30 and F-percent = 2.9% = 0.029
3. Apply the processor formula: P-charge = (P-goal + F-fixed) / (1 − F-percent)
4. Calculate: ($102.50 + $0.30) / (1 − 0.029) = $105.88 — this is the total charge to the donor
5. Confirm credit card fees: $105.88 − $102.50 = $3.38 in card processing fees

Need additional help?

We're here to assist you in any way we can. Don't hesitate to reach out to support@betterunite.com

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