New Zealand: Stripe Credit-Card Transaction Fee Explanation
Scenarios:
You are wanting to take credit card payments from your customers and need clarification on the fees associated.
This document assumes the following:
You are a business running in New Zealand.
You have opted to receive credit card payments from your customers.
How the Stripe Credit Card Transaction Fee Works
Every time a customer opts to pay for your activities by credit/debit card, a transaction fee will occur. The transaction fee will either be absorbed by the activity provider in full, or split between the parent and activity provider. As the provider, you decide how the fees are handled, based on how you want to accept payment for your activities.
Option 1: Enable Upfront Payment For Activities
The provider's full transaction fee amount is 3.63% + 30c
Transaction fees are inclusive of 15% GST
Why do activity providers pay the full transaction fee when enabling upfront payment for activities?
When activating upfront payments for activities, providers will absorb the full credit/debit card transaction fee amount of 3.63% + 30c. Taking payments for activities upfront enables you to:
Activate payment installment plans as a payment method for credit-card-only activities
Have Enrolmy automatically reconcile credit/debit card payments against invoices
Empower parents to pay for their term activity within two hours of booking with you
Ensure that customers who don't pay for your activity, don't take up a bookable space
Have refunds handled by Enrolmy Support
Option 2: Enable Various Forms Of Payment For Activities
The split fee amount that a parent pays is 1.85%
The split fee amount that a provider pays is 1.85% + 30c
Why activity providers enable various forms of payment for activities.
Activity providers will opt in to split the credit/debit card transaction fee amount with customers. Splitting the fee with customers enables providers to accept various forms of payment for the activity e.g. direct debit, automatic payment, cash, or POS payments.
Please note: Credit cards issued outside of your home country can have higher customer fees applied to them.
Account for GST on Transaction Processing Fees
In New Zealand, Stripe payment processing fees are exempt from GST. The IRD does not require a tax invoice for these fees since there is no GST (this is similar to the handling of Bank Fees).
How To Change Your Fee Structure
If you have already submitted your Credit Card Setup form but would like to change the fee structure that your organisation has selected. Then please contact Enrolmy Support with a written request to make the change.
Last Updated: