Understanding Payments Processing Fees and Transaction Limits

Processing Fees

If you're looking to configure Payments powered by Stripe for your organization, it is important to be aware of any fees you may encounter when accepting online donations.

Generally, Virtuous charges 2.9% + $0.30 per transaction.

Here's a detailed list of transaction fees when using Payments:

*Digital Wallets such as Apple Pay and Google Pay follow the same credit card processing fees mentioned above based on card type.

Transaction Minimum Amount and Limits

Credit Card and ACH transactions have a $5 minimum amount requirement.

There are no limits when it comes to credit card transactions.

However, there are limits on ACH transactions:

• $100,000 per transaction
• $100,000 per week

When Donors Cover Processing Costs

Here is how donor paid costs are calculated:

\[P_{total} = \frac{P_{donation} + F_{fixed}}{1 - F_{percent}}\]

P_total reflects the total amount charged, including the donation and any processing fees.

P_donation reflects the original donation amount. So, if a donor chooses to donate $100 and then cover processing fees, the original donation amount is $100. 

F_fixed reflects the fixed rate with processing online donations (in many cases, this will be $0.30/transaction, as seen in the table above).

F_percent reflects the percentage rate with processing online donations (in many cases, this will be 2.9%, as seen in the table above).

So, if we look at the rate of 2.9% + $0.30 per transaction:

To see what the total amount charged (including original donation and processing fees) would be, we would calculate as follows:
\[\mbox{Total Gift Amount} = \frac{\mbox{Original Donation Amount} + 0.30}{0.971}\]

To find only the processing fees the donor chooses to cover, we would calculate as follows:
\[\mbox{Donor Paid Cost} = \frac{\mbox{Original Donation Amount} + 0.30}{0.971} - \mbox{Original Donation Amount}\]

For example: Let's say a donor wants to give $100 and opts to pay costs. We can simply plug in those values.
\[\mbox{Donor Paid Cost} = \frac{$100 + 0.30}{0.971} - $100\]
\[\mbox{Donor Paid Cost} = \frac{$100.30}{0.971} - $100\]
\[\mbox{Donor Paid Cost} = $103.30 - $100\]
\[\mbox{Donor Paid Cost} = $3.30\]
Thus:

• The total gift amount is $103.30 (this is all tax deductible!).
• The donor paid an extra $3.30 on top of their $100 donation. 

Now that you've become familiar with Payments processing fee and transaction limits, it's time to get started configuring Payments and learning more about when funds will be deposited!