Understanding Stripe Payment Processing Fee calculations (when ticket buyers pay)

Explaining fees to attendees can be tricky because Stripe’s processing fee applies to the total transaction amount, not just the base ticket price. This creates a "fee on a fee" scenario that can be unintuitive.

This guide helps you understand the math so you can confidently set your pricing and explain it to your customers.

The Core Logic: Order vs. Ticket Level

Before diving into the math, it is important to understand how fees are applied:

• Ticket Falcon (TF) Service Fee: Calculated at the ticket level. You can choose to pass this on to the buyer or absorb it for specific ticket types.
• Stripe Processing Fee: Calculated at the order level. Because this is a bank processing charge on the total credit card charge, it must either be entirely absorbed by you or entirely paid by the ticket buyer for the entire transaction.

The "Stripe Math" Challenge

When you ask an attendee to pay the Stripe fee, Stripe calculates their $2.9% + $0.30 based on the final amount charged to the card. Since that final amount includes the fees themselves, a simple percentage calculation on the base price won't be quite right.

We use a specific formula to ensure that after Stripe takes their cut, you still receive exactly the amount you intended.

Example Calculation

In this scenario, the TF Service Fee is absorbed (paid by you), and the Stripe Fee is passed on (paid by the ticket buyer).

The Goal: You want to receive $599.00 per ticket after your $26.00 TF fee is deducted.

To ensure you receive the $599.00, the ticket buyer must pay a slightly higher amount to cover Stripe's processing fee. The formula used is:

Total Charge = (Net Amount + $0.30) / 0.971

• Net Amount: This is the total price of the tickets plus any fees you want to collect.
• $0.30: This is the Stripe flat fee.
• 0.971: This represents 100% minus the 2.9% Stripe fee (1 - 0.029).

Using our example:

1. Add the flat fee: $625.00 + $0.30 = $625.30
2. Divide by the percentage remainder: $625.30 / 0.971 = $643.98

The Result: * The ticket buyer pays $643.98.

• Stripe takes their fee $18.98.
• You receive $625.00 (from which your $26.00 TF fee is deducted), leaving you with $599.00.

Multiple Tickets in One Order

Because Stripe fees are transaction-based, the math scales efficiently.

• Payout Consistency: You will always receive $599.00 per ticket, whether the customer buys one ticket or ten.
• Ticket Buyer Savings: Because the $0.30 Stripe flat fee is applied per transaction (not per ticket), ticket buyers actually pay slightly less in fees per ticket when they buy in bulk.

Summary of Fee Permutations

You have full control over who pays what. Here are the most common setups:

1. Full Pass-Through: Ticket buyer pays both TF and Stripe fees. (Most common for low-cost events).
2. Hybrid (Our Example): Organizer absorbs TF fees; Ticket buyer pays Stripe fees.
3. All-Inclusive: Organizer absorbs all fees. The ticket buyer sees $625 and pays $625. (Common for luxury or high-ticket galas).