Schools may choose to pass their convenience fee for credit card or electronic check payments to the parent. Convenience fees can be applied to the deposit, application, ad-hoc forms, or billing. They can be in the form of a flat dollar amount (e.g. $29), a percentage (e.g. 2.9% of the total), or a combination of both. A fee description as well as a fee notification message can also be configured to show on payment screens. Convenience fee types and descriptions/notifications can be configured separately for credit cards and electronic checks. For assistance in setting up convenience fees on the SchoolAdmin side, please contact our Support Team.
For schools using Stripe as their payment processor: Stripe's merchant fees are 2.9% + 30¢ per transaction for credit cards, and 75¢ per transaction for ACH. There is an additional 1% charge applied to international credit cards. See below for specifics on how convenience fees are applied in both the SchoolAdmin and the Stripe side.
How-To: Understanding Convenience Fees in Stripe
The convenience fee paid by the parent in SchoolAdmin is not applied directly to the convenience fee for the payment processor (i.e. Stripe). To help demonstrate how the amounts apply and end up in the final payout to the school, we have created an example where the deposit/fee amount paid by the parent is $1,000 with a convenience fee of 2.9%:
Breakdown of this example:
The deposit amount being charged to the parent in SchoolAdmin is $1000. As the parent is paying with a credit card, a $29 convenience fee (2.9% of $1000) is added, making the final amount the parent pays in SchoolAdmin $1029.
When Stripe receives that $1029 payment, their 2.9% convenience fee plus the 30¢ transaction fee is applied to it, for a total of $30.14. After subtracting out this $30.14 in fees from the $1029 payment amount received from the parent, the school is left with a payout amount of $998.86.
Note that your payouts will look different depending on the specific amounts parents are being charged in SchoolAdmin, but this same structure will apply.