Why we don't use the Tip model: Stripe Processing Fees

Why we don't use the tip model

Some payment platforms tell organizations that processing is free. It's free because the platform is charging your members instead.

At checkout, the member sees a suggested contribution to the platform, usually a percentage, often in the double digits, filled in before they arrive. It's labeled as support for the platform. The member can change it to zero, but they have to notice it first. The platform's income is whatever people leave in that box.

We don't do that, and we want to be plain about why.

Groupable's customer is your organization. You pay a subscription. The processing cost is passed through at Stripe's actual rate, and the $1.00 platform fee is printed on the checkout as its own line. Neither number changes based on how carefully the payer reads the page.

Two members paying the same dues pay the same total. Nobody pays more because they trusted the default. Nobody gets asked, on your organization's own payment page, to tip a software company.

We also think what the member sees under your name matters. A dues notice or a donation page is your organization talking to your members. The only ask on that page should be yours.

The tip model works well for the platforms that use it. It's just not a model where the organization is the customer, and that's the one we've chosen.

If you want to see exactly what a member pays and what your organization receives, the worked examples are in the processing fees article.