How online payment fees are calculated
Each online payment will be subject to a small fee. This fee pays for the many companies and banks that have a role in processing a transaction. Bank account payments generally incur a lower fee than credit/debit card payments. To see a full list of the fees associated with these payments, please visit this article: About online payment fees.
Below is a break down of how the fees are calculated. As a note, for the following examples, we will be using the fees associated with those in the United States.
Credit/Debit Card Fees
Say a payment option has been created for $150 for membership dues. We know that the credit card fees are 3.4% + $0.80 in the United States. These fees are subtracted by the credit card processing companies based on the amount that's submitted to them. Therefore, when we submit $156.11 to them, they'll subtract (156.11 x 0.034 + 0.80 = $6.11) to achieve the exact amount your community wants to receive, which is $150.
If you don't want to pass along the fees to your residents, then we'll submit $150 to the credit card processing companies, and they'll subtract $5.90 from the total (150 x 0.034 + 0.80 = $5.90) leaving your community with $144.10.
Bank Account Fees
Although bank account payments are much slower than credit/debit card payments, they do incur lower fees. In the United States, the fee is 1.4%. For this example, we will use the same payment option amount of $150.
Like the credit/debit card fees, the fees associated with using a bank account will be subtracted by the bank based on the amount that's submitted to them. Therefore, when we submit $152.13 to the bank, they'll subtract (152.13 x 0.014 = $2.13) to achieve the exact amount your community would like to receive, which is $150.
Countries Outside the U.S.
Some countries outside of the United States have split pricing, where international cards have higher fees than domestic or regional cards. Since it is not possible to determine a card's fees before a payment is made, we'll always pass the highest fee structure on to the resident. This may result in the community receiving slightly more than the amount they intended if the card's fees turn out to be lower.