Hi there! I have in mind certain project and I will likely open a Patreon for it in the future. So, I have created a dummy page just for testing, I’ve been messing around with the Tier editor among other features. Just to get familiar with it so hopefully I won’t mess it up for the real thing.
Sorry for the slightly long introduction, I just wanted to give some context. Now, going to the main topic, I’ve been reading this help article about creator fees, but I have some doubts about how and when are those fees calculated.
Let’s say for example I receive a 10 USD pledge from a patron, if I understood correctly, there are two fees before any money gets into my balance: the platform fee, which would be 8% for the Pro plan, and the payment processing fee, which would 3.9% + 30 cents (since I’m not a US resident there’s that extra 1%). Are both percentages calculated using the full pledge amount as a base? Or maybe the payment processing fee is subtracted first and then the platform fee is applied on that amount?
With the first case the platform fee would be 10 x 0.08 = $0.80 and the payment fee would be 10 x 0.039 + 0.30 = $0.69 which would account for a total of $1.49.
However, with the second case the payment fee is the same, but if we apply the platform fee on the resulting amount 10 - 0.69 = $9.31 -> 9.31 x 0.08 = 0.7448 (I assume this would be rounded to $0.74). It’s just a slight difference, but with larger amounts and more patrons the difference may be noticeable. I’m making some estimations to calculate how many patrons I would need to gain X and I would like to be as much accurate as possible.
Let’s consider another case scenario with VAT added on top of the tier price, with a VAT of 21% the actual pledge amount would be $12.10. Will that amount be used to calculate the payment processing fee? And how about the platform fee, would it be applied using the base tier price ($10) or the actual amount charged to the patron?
Lastly, regarding the currency conversion fee if the patron decides to pay in their local currency. How it affects the other fees mentioned before? Which would be the base amount to calculate the 2.5% conversion fee?