When a donor opts to cover your processing fee, there are 2 key factors that go into how we approach the calculation:
- We include the Donorbox fee of 1.5%.
- We use the lowest Stripe/PayPal rate allowed, which is 2.2% + $0.30. Donorbox doesn’t have access to check what your actual Stripe/PayPal rate is. So, this the safest rate to use that ensures we don't over-calculate what your fees are.
Additionally, we use the same calculation logic as Stripe to ensure complete accuracy:
Pcharge: The final amount that your donor will be charged.
Pgoal: The intended donation amount
Ffixed: The fixed amount that Stripe/PayPal charges per transaction ($0.30)
Fpercent: The Stripe/PayPal rate + Donorbox rate
Let’s use an example where the donor wishes to donate $1,000 and cover the fees of her donation. Here’s how the calculation works:
Pgoal: $1, 000
Fpercent: 2.2% (Stripe) + 1.5% (Donorbox) = 3.7%
The donor would be charged an amount of $1,038.73.
Remember, this amount is based on an estimated 2.2% + $0.30 Stripe/PayPal rate. Unfortunately, we’re unable to use your actual Stripe/PayPal rate because neither processor shares that data with us beforehand. So the final amount that you receive might differ a little, based on what your actual Stripe/PayPal fee rate is. Additionally, It's important to note that we do not charge these fees, nor do they go to us. Donorbox will only keep the Donorbox fee rate.