{"id":5756,"date":"2020-09-10T14:32:19","date_gmt":"2020-09-10T21:32:19","guid":{"rendered":"http:\/\/blog.quickschools.com\/?p=5756"},"modified":"2024-09-11T18:35:21","modified_gmt":"2024-09-12T01:35:21","slug":"transaction-fees-for-international-payments","status":"publish","type":"post","link":"https:\/\/blog.quickschools.com\/2020\/09\/10\/transaction-fees-for-international-payments\/","title":{"rendered":"Transaction Fees for International Payments"},"content":{"rendered":"
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Credit Cards payments always incur a transaction fee. In most cases, the transaction fee is absorbed by the merchant. So for example, if you went to an online store and purchased some shoes for $100, a portion of that transaction is kept by the payment provider as a transaction fee, typically in the realm of 3% – 5% of the total. The merchant would then only receive between $95 and $97.<\/p>\n\n\n\n

When allowing parents and students to pay online<\/a> in Quickschools<\/a>, schools actually have the option of adding a Convenience Fee to offset the transaction fees incurred by the payment gateway. <\/p>\n\n\n

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Configure the Online Payments module where the parent or student pays the transaction fee<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n

So from our original example above, if you were buying shoes for $100, the system would calculate a Convenience Fee, such that the merchant would receive the original $100 that was charged. So you\u2019d end up paying something like $104, where $4 would go to the payment gateway, and the merchant would receive the original $100 charged.<\/p>\n\n\n\n\n\n\n\n

Some Credit Cards incur additional transaction fees<\/h2>\n\n\n\n

There are certain cases where the payment provider charges more in transaction fees than typical. Stripe<\/a> for example charges extra for international credit cards, or credit cards in foreign currency. For more information on Stripe\u2019s additional fees, check out their pricing page<\/a>. <\/p>\n\n\n\n

Unfortunately, QuickSchools is unable to predict any additional charges that are incurred by Stripe. QuickSchools will calculate the Convenience Fee based on the assumption that the credit card is a regular credit card. However, after sending the payment to Stripe, Stripe can deduct more from the transaction than was originally calculated, leaving the school with less than what was originally charged. <\/p>\n\n\n\n

Here\u2019s an example<\/strong>: A parent pays $1000 using an international credit card in Japanese currency while your bank\u2019s currency is USD. QuickSchools does not have a way to determine the type of credit card being used, and estimates the credit card fee based on existing rules:<\/p>\n\n\n\n

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QuickSchools Estimates the Credit Card Fee PRIOR to charging the card<\/em><\/figcaption><\/figure>\n\n\n\n
How is the estimated credit card fee calculated?
Amount to pay plus 30 cents divided by the fee percentage 3.9% minus amount to pay
(($1000 + 0.30) \/ (1 – 0.039)) – $1000 = $40.90<\/strong><\/td><\/tr><\/tbody><\/table>
Sample Calculation to estimate the Credit Card Transaction Fee<\/em><\/figcaption><\/figure>\n\n\n\n

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After the payment is sent to Stripe, Stripe applies and deducts an additional 1% of the $1,040.90 (which comes to $10.41) because of the foreign currency conversion required. The resulting transaction fee being deducted becomes $51.31. <\/span><\/p>\n\n\n\n

Once the transaction is completed, QuickSchools will update the transaction in the Fee Tracking module, based on the actual charges by Stripe:<\/span><\/p>\n\n\n

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Fee Tracking transaction<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n

You can check the amount deposited to your bank by going to Fee Tracking > Online Payments > click on the transaction from the list.<\/p>\n\n\n

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Online Payment details the Charged Amount and the Transaction Fee<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n

So to summarize, here are the series of events based on this example:<\/span><\/p>\n\n\n\n