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 (1.5%), 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.
- 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.
We will use an example of a $100 donation where the donor wants to cover fees. Here’s how the calculation works:
We add your Stripe/PayPal and Donorbox fee to the donation.
The donation amount has now increased by an extra $4, which will also incur fees. So, we adjust the final amount to cover fees for that extra $4.
We add the calculations from Step1 and Step 2 to give us the final total that the donor will be charged.