The “cover fee” amount is made up of the following items:
- 2.2% + $0.30 (estimated Stripe/PayPal rate)
It's not possible to know exactly what rate your Stripe/PayPal account is on (ie. you might be on a special discounted NPO rate, etc). Therefore, 2.2% + $0.30 is the lowest and safest rate where the fee being taken is not more than is needed.
- 1.5% (Donorbox fee)
We include the Donorbox fee because we have no way of knowing if you will reach the $1,000 limit or not. If you do, you will already have the 1.5%. If you don't, you can refund that portion back to the donor.
By adding additional fees to the original donation, the donor’s donation amount has now increased, ie. a $100 donation is now $104. This means that the overall fees would also increase. So, we adjust the amount slightly to account for the increased fee, ie. $104 now becomes $104.15.
Your actual processing fee will vary depending on these factors:
- If you have the NPO discount rate from Stripe or PayPal.
- The type of card you are using. AMEX charges a flat 3.5% (no 30c charge) for U.S. nonprofits.
- The country your Stripe account is registered in. See https://stripe.com/global.
- Whether your organization will reach $1,000 in donations for the month. Donorbox will only enforce the 1.5% platform fee if you receive $1,000.
- If the donor is using a card outside of your Stripe country.
Because Donorbox cannot know your actual processing fee ahead of time, the fee amount in the checkbox is based on estimation.
To get the nonprofit discount rate, please email Stripe at email@example.com. If you use PayPal, go to https://www.paypal.com/us/webapps/mpp/donations.