Within the SportsTG system, there are 2 fee 'models' that we have available for clubs and associations to choose how we charge our processing fee for each transaction:
· user pays ("exclusive model") and
· club pays (or association pays) ("inclusive model").
SportsTG's processing fee calculation is a % of the transaction, with a minimum of $1. In an exclusive model, the processing fee is a separate line item and is an additional charge to the rest of the transaction. In an inclusive model, the processing fee is deducted from the total transaction amount - the customer does not see the processing fee at all.
What are the changes and why do we need them?
The changes that we are set to implement only affect the 'inclusive model'.
The previous way of calculating processing fees charged clubs the %, and if the transaction was less than $1, the difference was charged to the customer.
In the new fee calculation, the entire $1 is charged to the club or association. Simple. Clear and entirely predictable.
Implications on Associations/ Clubs
This has implications for those currently using the inclusive model who are wanting to collect a specific amount. Associations should be advised that they need to take this change into account prior to the changeover date that will be communicated to you by your sport or SportsTG.
-e.g. Previously if a Club was charging $10 for a product using the inclusive model - 3.9% of $10 was 39c which was charged to the Association - Association would collect $9.61
The remaining 61c would be charged to the user and they would pay $10.61
Now the Association would only receive $9 and the user would only be charged $10.
If Associations are wanting to collect specific amounts they will need to adjust their pricing in accordance with the above example.