Merchant Fees Overview

Breakdown of the fee structure:

1. Fee: 2.99% of the transaction amount + $0.30 per transaction.
   
2. Example:
   
3. Transaction Amount: $100
   
4. Fee Calculation:
   
5. 2.99% of $100 = $2.99
   
6. Fixed Fee = $0.30
   
7. Total Fee: $2.99 + $0.30 = $3.29
   
8. Net Amount Deposited: $100 - $3.29 = $96.71
   

1. Fee: Flat $0.50 per transaction, regardless of the amount.
   
2. Example:
   
1. Transaction Amount: $100
   
2. Fee: $0.50
   
3. Net Amount Deposited: $100 - $0.50 = $99.50
   

What Happens When Donors Choose to Cover the Fee?

Fee Coverage Example (Credit/Debit Card)

1. Fee Covered by Donor:
   
2. $100 × 3% = $3.00
   
3. Gross Donation Amount = $100 + $3.00 = $103.00
   

1. 2.99% of $103.00 = $3.08
   
2. Fixed Fee = $0.30
   
3. Total Fee = $3.08 + $0.30 = $3.38
   
4. 
   

1. Donor pays $103.00.
   
2. Fee deducted: $3.38.
   
3. Net Amount Deposited: $103.00 - $3.38 = $99.62.
   

Fee Coverage Example (ACH Transaction)

1. Fee Covered by Donor:
   
2. $100 × 3% = $3.00
   
3. Gross Donation Amount = $100 + $3.00 = $103.00
   

1. Donor pays $103.00.
   
2. Fee deducted: $0.50.
   
3. Net Amount Deposited: $103.00 - $0.50 = $102.50.
   

Why Is There Still a Fee When Donors Cover It?

Deposit Amounts and Reconciling Fees

1. The 3% coverage may not fully account for the actual 2.99% + $0.30 fee.
   
2. Example:
   
1. Donor covers 3% = $3.00.
   
2. Actual fee = $3.38.
   
3. $0.38 is deducted from the donation amount.
   

1. If the donor covers 3%, this exceeds the flat $0.50 fee.
   
2. Any excess contributes to the deposit amount.
   

How to Achieve an Effective Rate Under 1% with SteepleMate

*An “effective rate” is the average cost of processing transactions, calculated as total fees divided by total transaction volume.