Overview

Registration is a required process, often repeated multiple times per year when competitive, recreation and training programs/camps are included. An often requested feature is the ability to pass on (“surcharge”) some or all of the processing costs that are charged by credit card processors and/or banks.

Surcharging, as defined and implemented in the Byga platform, is the ability to add a fixed fee and/or percentage fee to an amount, typically the registration fees, the club is requesting from users The functionality is defined such that the surcharged fees can be separately delineated by credit/debit card versus bank transfer.

As a result of the above functionality, any portion of the processing fees can be surcharged to the parent/user, but in addition, more practically speaking:  any amount can be surcharged including more than the actual processing costs. While not a platform limit, the typical intent and use case is that 100% of the processing fees are passed to the parent, and that the club ends up with exactly the amount stated for the registration fee.

Surcharge Math & Equations

While not intuitive, the math to provide the club with the exact amount (within rounding error) does not start with the amount (registration fees) per se:  it ends with the club receiving a certain specific amount..
From the above, the equation is:

Amount Requested - Processing Fees = Amount Desired to Receive

Assume:

RegFee:  the amount the club wants to receive (eg. $1600)

ProcRatePcnt:  the club’s processing percentage rate (eg. 3.2%)

ProcRateFixedFee:  the club’s processing fixed fee rate (eg. 75 cents)

AmtReq:  the amount requested of the parent such that the RegFee is returned

Solving:

AmtReq - [Processing Fees] = RegFee:

AmtReq - (AmtReq x ProcRatePcnt + ProcRateFixedFee) = RegFee

AmtReq - AmtReq x ProcRatePcnt - ProcRateFixedFee = RegFee

AmtReq * (1 - ProcRatePcnt) = RegFee + ProcRateFixedFee

AmtReq = (RegFee + ProcRateFixedFee) / (1 - ProcRatePcnt)

Examples

Example 1:  A club wants 100% of credit/debit card processing costs to be passed on to the parent.

Assume:

RegFee:  $1600

ProcRatePcnt:  3.2%

ProcRateFixedFee:  75 cents

AmtReq:  ?

Solving:

AmtReq = (RegFee + ProcRateFixedFee) / (1 - ProcRatePcnt)

AmtReq = ($1600 + .75) / (1-.032)

AmtReq = $1600.75 / .968

AmtReq = $1653.67

Calculating:

$1653.67 - [Processing Fees] = ?

$1653.67 - ($1653.67 * .032 + .75) = ?

$1653.67 - (53.67) = $1600

Example 2:  A club wants to charge the nominal credit/debit card processing fees to the parents. The nominal fees are calculated as the registration fees times the processing rates.

Assume:

RegFee:  $1600

ProcRatePcnt:  3.2%

ProcRateFixedFee:  75 cents

Nominal Fees:  $1600 * .032 + .75 = 51.95

AmtReq:  $1651.95

Calculating:

$1651.95 - [Processing Fees] = ?

$1651.95 - ($1651.95 * .032 + .75) = ?

$1651.95 - (53.61) = $1598.34