How Transaction Fees Work
If you are using PheedLoop's registration and selling tickets, then one of the things you may have noticed is that PheedLoop adds a transaction fee to all credit card payments flowing through it - just like any other registration tool out there (e.g. Eventbrite, Cvent, Splash, etc.). This article covers some of the frequently asked questions and tips around transaction fees.
Default Ticket Fees Calculation
In order to process payments, you have likely already integrated Stripe with PheedLoop (PheedLoop's integrated payment processor). Stripe, just like PayPal for example, charges a credit card processing fee of 2.9% + $0.30 in the most common case, sometimes less depending on your account status. PheedLoop charges a 1.9% transaction fee. How these fees are calculated are described below by taking a very simple example of a $100 ticket, no tax.
If an attendee purchases a $100 ticket from your event, in the default case they will be charged $101.90 because the PheedLoop transaction fee is charged to them, not you. As a result, in your Stripe account, a precise $100 will be deposited. $3.20 will be deducted from that (Stripe's 2.9% + $0.30 processing fee), so you will net a total of $96.80.
In other words, with the default configuration, the attendee pays the PheedLoop transaction fee and the event planner pays the Stripe processing fee. This is a very standard model that nearly all attendees are used to which is why it is the default configuration, but we offer a few options for you to customize the behavior.
Absorbing All Ticket Fees
Whether it is because you don't want attendees to see any fees because you choose to include them in the price of the ticket itself, or you're just feeling generous, you can easily choose to absorb all fees an attendee would have to pay. That way, for a $100 ticket purchase, they would simply pay the $100 and go on their merry way. You would receive $98.10 (to account for the 1.9% PheedLoop transaction fee in your account) in your Stripe account, at which point $3.15 would be taken by Stripe (to account for Stripe's 2.9% + $0.30 processing fee), so you will net a total of $94.95.
In order to absorb all ticketing fees, visit Registration > Settings in your dashboard, and uncheck the option called Pass Transactions Fees to Registrants.
Adding Additional Ticket Fees
Many events prefer to pass on all fees to attendees, which is totally fine as well. Consumers are very used to service fees on purchases these days when buying tickets, food, entertainment, etc. so we are seeing more and more events choose to pass on the full set of fees to attendees. Suppose you would like to pass on a total of 5.0% of fees on to attendees, including PheedLoop's 1.9% transaction fee. To accomplish this, set the Extra Fees Percentage setting under Registration > Settings to 3.1%. Attendees will now see a total of 5.0% in fees when checking out.
Taking the example of a $100 ticket again, the attendee will pay $105 (to account for the total of PheedLoop's 1.9% transaction fee and your 3.1% extra fee). $103 will be deposited in your Stripe account ($2 deducted to account for PheedLoo's 1.9% transaction fee on the $105), at which point $3.29 would be taken by Stripe (to account for Stripe's 2.9% + $0.30 processing fee), so you will net a total of $99.71.
Refunding Payments
If you refund a payment at any point, the PheedLoop transaction fees and Stripe processing fees are not refunded. For PheedLoop and Stripe customers who joined prior to 2017, these fees are refunded as they own old accounts where this ability was still possible.