How to Recover Payment Processing Fees
As you are likely aware, SE Payments charges merchant fees for every credit card transaction. Many organizations naturally want to recover those fees.
The simplest way to do this is to simply raise your prices enough to offset those fees, and charge the same amount regardless of what payment method is used, which is known as a "single pricing scheme." Studies have shown that people don’t like additional fees (kind of like “$12 + $3 shipping” seems worse than “$15 with free shipping”), and some states do not allow it anyway, so this eliminates both problems. As a SportsEngine best practice, it also helps cover things like coaching fees and other increases, and the labor costs and hassle of processing checks.
For those organizations that would rather pass along those processing fees to their customers separately, which is known as “surcharging,” GoMotion gives you ways to do this (see the articles at the bottom). Here are some things to be aware of if you choose this route.
Be aware that you cannot completely recover your processing fees. This is because the total amount charged to the customer (invoice items + surcharge fees) is what SE Payments (SEP) assesses the processing fees off of. (FYI, this has always been the case, but prior to SE Payments, customer payments were deposited into your account first, and then later the electronic processing fees were deducted from your account separately, so it wasn’t as transparent.)
For example, suppose a customer makes a $100 payment and your SEP rates are 2.9% + 1% technology fee + $0.30 per transaction.
SE Payments then processes this as follows.
Note that both Visa and Mastercard prohibit surcharging more than the fees they charge you. Adding your own separate additional credit card fees as a way to get around this is generally prohibited as well. Again, “baking in” the processing fees to your rates is the easiest and safest way to recover all your processing costs, and is therefore an SE best practice. Using the above example, setting your club dues to $104.37 will net you $100.00.
Registration: Apply credit card transaction fee/surcharge automatically
Classes: Apply credit card transaction fee/surcharge automatically
Billing: Apply credit card/ACH transaction fee/surcharge automatically
Billing: Allow parents to make on demand credit card payments
SE Payments Payout Schedule
How to View SE Payments Transactions
How to View SE Payments Payouts