Understanding Processing Fees

Learn how processing fees apply to different payment methods and why Stripe is recommended.

Overview of processing fees

When processing payments, especially online, small fees are typically involved to cover the costs of securely handling transactions. This guide explains how these fees apply to the payment methods offered on our platform and helps you understand the total cost for your supporters.

Australian organisations: fees work differently in Australia due to the card surcharge ban. See How Pricing Works for Australian Organisations for details.

Stripe (Credit/Debit card) - recommended

Stripe is our preferred payment processor for online card transactions due to its reliability, security, and ease of use for everyone.

• Fee Structure: for payments made via Stripe, the following fees apply: Stripe's processing fee plus our standard Platform Fee of 5%. Stripe's fee for local cards is currently 2.65% + NZ$0.30 in New Zealand and 1.7% + A$0.30 in Australia. International cards cost a little more.
• Charged to the Donor (New Zealand): these combined fees are typically added to the total amount at checkout and paid by the donor. This means the full amount they intended to give to your campaign is what you receive (before any payout fees, if applicable).
• Built into Prices (Australia): card surcharges are not allowed in Australia, so nothing is added at checkout. For products, the fees are built into the prices supporters see, and you receive your full price on local cards. For donations, the fees come out of the donation unless the donor chooses to cover them. See Fundraising in Australia.
• Benefits for Campaign Owners: no complex calculations or deductions from your raised funds. Payments are automatically reconciled in your dashboard.
• Benefits for Donors: a familiar, secure, and convenient way to pay instantly using their credit or debit card.

While there are fees associated with Stripe, they facilitate a secure and automated process, which saves you significant administrative effort.

Bank transfer - no Platform/Stripe fees

If you offer Bank Transfer as a payment option, there are no processing fees charged by our platform or by Stripe for these transactions.

In Australia, fundraisers with card fees built into their prices are card only, so bank transfer and cash are available only if your organisation absorbs card fees. Crowdfunding campaigns are card only in both countries.

• Platform Cost: free from our side.
• Donor Considerations: the donor's own bank may charge them a fee for making a bank transfer, which is separate from our platform.
• Campaign Owner Effort: remember, bank transfers require manual reconciliation. You'll need to check your bank statements and update records in the dashboard.

Cash payments - no platform fees

Similarly, if you accept Cash payments, our platform does not charge any processing fees.

• Platform Cost: free from our side.
• Campaign Owner Effort: this method requires you to manually collect the cash, track the payment, and update its status in your dashboard.

Benefits of Stripe for campaign management

While you have the flexibility to choose which payment methods to offer for your campaigns, it's helpful to understand why Stripe is a highly recommended option from a campaign management perspective:

• Reduced Administrative Workload: with Stripe, payment tracking and reconciliation are automated. This significantly cuts down on the manual effort required compared to Bank Transfers or Cash, freeing up your time to focus on your fundraising goals.
• Simplified Financials for You: because the Stripe processing and platform fees are typically covered by the donor at checkout in New Zealand, or built into your prices in Australia, the amount you see raised for each Stripe transaction is the amount that directly benefits your campaign (before any separate payout processing by your bank).
• Enhanced Donor Experience & Trust: offering a secure and familiar card payment option like Stripe can lead to higher donor conversion rates and build trust, indirectly benefiting your campaign's success.

Ultimately, enabling Stripe streamlines the payment process, reduces your administrative burden, and provides a professional experience for your supporters, making it a valuable tool for effective campaign management.