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Order Fee Calculation Documentation

I. Introduction

Purpose of the Document

How the fees on orders are charged, who pays for these charges and how they are configured is important for the transparency of the system. The intent is to document this for fast reference by the Audience.

Audience

The document is intended for Developers and Organizers using the system.

Scope and Applicability

The fees are calculated on orders containing tickets sold on the primary market. This document does not contain an explanation for secondary market fees and limits. That can be found in the secondary market documentation.

II. Order Fee Components

Overview of Fees

Fees can be collected in two ways: included in the ticket price or passed on. It is possible to have both types in the same order. Fees are calculated against the tickets' net price(without VAT).

Types of Fees

In the system, there are the following fee types:

  • Platform Fee, which we charge for the use of our ticketing
  • Transaction fee, charged by the payment provider

Platform Fee

For the use of the platform, we take a certain amount on each ticket sale. This is defined on a per-organizer basis. The fees can have a fixed and a percentage part, and can also have a minimum amount. This defines the net value of the fee, and after that, we add tax. When defining the ticket prices, the fee can be included in the price or passed on to the customer.

Transaction Fee

Transaction fees are charged by the payment providers. The amount is available as a field in the orders. They are always included in the ticket price as they vary by provider, the payment method selected, the currency of the charge and the currency of the bank account associated with the provider. For Stripe, the amount is usually 2.9%+0.3$.

III. Fee Calculation Process

Step-by-Step Calculation of the Platform Fee

  • The base for the Fee is the sum of the net prices of all the tickets in the order.
  • We calculate the net fee as TicketNetSum * FeePercentage + FeeFixed. If this is under the FeeMinimum we take FeeMinimum instead.
  • We add the fee tax on top of the net fee, getting the gross fee amount.
  • We split the gross fee into the part that is included in the ticket price and the one that is passed on. This is done according to the ratio of tickets with passed-on and absorbed fees.

Examples

Let platform fees for an organizer be defined as 5% with a fixed amount of 1 EUR and 20% tax. Let there be two ticket configs:

  1. Ticket with fees included in the price, net price 10 EUR, gross price 11 EUR
  2. Ticket with fees passed on, net price 20 EUR, gross price 22 EUR

If you make an order containing two tickets, one of each, the total would be:

  • The base for the fee would be 10+20=30 EUR
  • Total fee would be (30*0.05+1)*1.2=3 EUR
  • The absorbed fee would be 1 EUR
  • The passed-on fee would be 2 EUR

The order total without fees was 33 EUR, and the total with fees would be 35 EUR.

After the payment is made:

  • The platform gets 3 EUR
  • The payment provider takes their Transaction Fee
  • The organizer receives the rest of the funds

IV. Billing and Invoicing

Communication of Fees to Users

Absorbed fees are not displayed in the checkout process, only those added on top are. This is done to reduce user confusion. By default, passed-on fees are also not shown in the invoice email as well, but this can be changed if you contact us.

Invoicing

Two scenarios are possible here:

  • The organizer has completed the Stripe Connect process
    After the event, they will receive an invoice citing the platform fees charged. Funds are automatically transferred as the orders come in and no further action is required.
  • The organizer has not completed the Stripe Connect process
    Contact us after the event and we will provide you with an invoice and your proceeds will be transferred to you.

V. Glossary

  • Definition of Key Terms
    • Passed on Fee - fee which increases the order total
    • Absorbed Fee - fee which is included in the ticket price
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