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How do Electronic Payment Processing Fees work?
How do Electronic Payment Processing Fees work?

Starting January 1, 2024, we pass through electronic payment processing fees to clubs.

Updated over a year ago

Electronic payment processing fees

Starting January 1, 2024, we pass through electronic payment processing fees to clubs for credit card charges related to club activity/event entries, 'extras' (e.g., food, camping), membership dues, merchandise, and all other purposes.

To keep things simple, we don't show these electronic payment processing fees to entrants or buyers. Instead, they only affect the final payments we make to clubs.

Note that we say "Electronic payment processing fees" instead of "Credit card processing fees" because we intend to support other kinds of electronic payments in the future (e.g., direct payment from checking accounts via ACH/EFT).


How it works

When it's time for us to pay a club for their activity, membership dues, merchandise sold, and the like, we do the following:

  1. Add up the associated electronic payments (credit card charges)

  2. Multiply the total by 4%

  3. Round up to the nearest dollar

  4. Deduct this amount from the club's final proceeds payment


Example

Let's look at an example Ponderosa Pointing Dog Club (PPDC) hunt test.

Here are the charges:

Entrant

Entry fees

Payment type

Hoss Cartwright

$60

Credit card

Festus Haggin

$60

Credit card

Kitty Russell

$120

Check

When the secretary finalizes the hunt test:

  1. We add up all the credit card charges to get $120.

  2. We will then calculate 4% * $120 to get $4.80

  3. Next we round up to the nearest dollar to get $5.

  4. The PPDC's final proceeds check will be reduced by $5 to cover credit card processing fees.


Recommendation

If you expect a large number of payers to use a credit card, you may want to increase your entry/extra fees, membership dues, merchandise prices, and the like to account for the credit card processing fees (like almost every physical and online store in the country has done for many years).

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