It is not my domain, but I was quite surprised at the 10% processing fee expense. That’s ~$1M at their ~$10 income.
replyIsn’t that quite a bit high? Or am I looking at something incorrectly. Maybe someone has some suggestions for them on how to lower that amount.
That probably means they receive a lot of small donations. Payment processors often have a fee structure that's 2.9% + <flat fee around $0.30>. So any donation below ~$4.50 would end up having a >=10% processing fee.
replyThere could be currency exchange rates that are factored in at the donation end as well.
I agree that 10% is high, but it's still explainable.
Yeah, and those amounts are much more common when organizations are pushing for users to make their donation a monthly recurring donation resulting in much smaller transactions.
replyI believe they use stripe and this would also include:
- subscription billing fee (up to 0.7%)
- currency exchange fees
- chargeback fees
- processing fees on refunded transactions
Aren't processing fees usually 3-6%?
replyAlthough it could be higher if a lot of donations are small, and hitting the minimum transaction fees. The average could also be brought up if donations are made through the play or apple app stores, which have much higher takes.
That is very high. Not sure who they are using for processing, but I know Stripe will give registered charities a (very small) cut on their fees, I'm not sure about non-profits. But even with market rates, the average fees through Stripe would be well below 10%, IME.
replyThat's a good explanation. It would make a lot of sense for them to link to it when they're asking for donations.
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