Up until this morning, we proportionally split the processing fee across the components that made it up. For example, if a person signed up for a $20 race and made a $20 donation, the $3.00 processing fee would be allocated evenly – $1.50 each.
The problem with this was that many races set things up so that the runner paid the processing fee for the race, but the race paid the donation part of the fee.
We are now calculating the race and store fees first, and then the processing fee. So in the above example, the total processing fee is still $3.00 based on the $40 total order. But the $20 race fee would be charged a $2.50 processing fee, and paid by the runner. This means there is only $0.50 left to pay for the donation part of it.
Here is the formula:
- Calculate fee on total.
- Calculate fee on total – donation.
- Donation processing fee is the difference.
- Split the rest of the processing fee across the remaining line items (like multiple runners, race fees and store items, etc.).
This should save money for donations, and the runner is paying what they would have if they did not make a donation. Thanks to the races that suggested this!