Paymattic Fees Question
Is there an option in Paymattic to allow the user to cover the processing cost? I assume its easy to add in a fixed processing cost but can it be calculated based on the donation amount easily without having to build out a complex set of conditions?
Just wondering if it is possible to "force" customers pay the processing fee in all cases. If this would be allowed then everybody would charge it I think. Its a good case to check.
Traders in the EU are not allowed to charge you extra for using your credit or debit card. The only exceptions to this rule are American Express/Diners Club cards and business or corporate credit cards, where your employer is billed instead of you. If you use these cards, you may still be charged a fee but the fee can't be more than what it actually costs the trader to process your payment.
You should be aware that if you're paying in EU currencies other than euros, you may still be charged a currency conversion fee by your card provider when you use your card in another EU country.
Mat It would not be to force anyone to pay but give them the option to pay the fees. It's pretty common in the US to have that option, but not be forced to use it. Sorry if I wasn't clear. This is why I asked if it was possible to "allow the customer," not force the customer.
In case it helps clarifying.
At least in Europe (for European customers I mean) It’s a PSD2 (PSD3 in 2026) matter.
generally:
B2C: not allowed unless a “benefit” for a specific payment method is announced.
Even if you collect “consent” is a mayor prohibition for consumers. Unless the aforementioned case of business or commercial cards (that presume you are not a consumer).
B2B, notice is needed, but it’s generally accepted.
We may face some changes next year. We will see 😄
I’ll go for “including” the the costs as “COGS” is your margins.
Have seen a couple of corporations having troubles because of invoicing systems that charge you the stripe, PayPal or SEPA fees.
This will also depend on your inner regulations and public legal info (eg.: if you presume profesional customers or not).
Jerad Hill its my fault I didnt mean force force rather then just telling the customer to pay in a nice way. So I have no issue with this approach at all - I think it should be possible (but I guess its not in EU haha)
Mat It is legal in the US. I am just looking for a simple implementation method without recommending a platform to my client.
Usually, when someone is hesitating about whether something is allowed in the EU, going for the “no” is the safer bet 😂
Eur-NO-pe 😅
I recently saw authorities asking for “certificates” and full audit-trail lead journeys to prove consent for entering databases. And I also saw a company (fully compliant, according to the voluntary tools and systems pointed in the GDPR) get fined simply because the report didn’t display the time… which was actually there 🙂↕️
Jorge de los Reyes Almost as bad as doing business in California, which is why I left that state years ago.
Jerad Hill The challenge with consumers is that their jurisdiction almost always takes precedence over the merchant’s (with very few exceptions).
That’s why, at times, blocking an entire market ends up being more about legal compliance than business strategy.
It’s also said that, combined with Europe having some of the strictest jurisdictions worldwide, EU compliance has become a kind of global gold standard - if you meet EU rules, you’re usually “covered” almost anywhere.
A fairy tale, to be honest, because it’s so limiting and burdensome for merchants. But still… a standard 😅
For your case with Paymattic, Jerad, I’d consider averaging the fees and building them into the price.
I’d also review Stripe’s policies and check with their support - I think it was about a year ago when they prohibited certain donation flows. But in case it’s relevant (+80%), Stripe offers discounted rates for nonprofits: https://support.stripe.com/questions/fee-discount-for-nonprofit-organizations?locale=en-GB — you may already know this, but their support team is usually very receptive on these topics.
Also, you can negotiate fees with them (in case this is your processor) when you have high volumes.
Not sure if other processors have this kind of agreements too but, will be good to check!
Jorge de los Reyes I will have to see if the client has tried negotiating the fees. I know that building the fees into the price doesn't make sense for them because it's a donation form so you can't really price something in because $1.00 or $1,000 is all donation. There is no product to sell in which the price could be marked up 3-5%.
Jerad Hill best of success!
Do not hesitate to share your insights.
Your case remind me of “Go fund me”. You may find interesting reviewing how they manage this:
https://www.gofundme.com/c/pricing
https://support.stripe.com/questions/gofundme-and-stripe?locale=en-GB