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July 26, 2023

Giving the option to cover transaction fees: an essential feature

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The goal of any fundraiser is one and the same: to raise as much money as possible for a cause we hold dear. With Followmybid auctions, this mission is achieved first and foremost through the organization of a successful auction. But once the euphoria of the auction fades, it’s time to pay the bills. As a participant, you’re faced with a dilemma: in addition to the price of your items, transaction fees are deducted from the total amount raised for the organization. Although the fees are low, they can add up quickly, depending on the total amount of your purchases.

That’s why Followmybid has integrated an option into the platform, allowing participants to cover transaction fees. At Followmybid, we know this option raises a lot of interest and questions, so we’ll try to cut to the chase and cover all that in this blog post!

  • How much are the fees?
  • Where do these fees come from?
  • What are the benefits of giving the option to cover the transaction fees?
  • How does it work?

How much fees are charged?

This fee is approximately 8%, although the figure may vary depending on the profile of the organization receiving the funds.

These fees include bank charges of approximately 2.9% + $0.30 per transaction from our payment processor, Stripe. Depending on the credit card used when paying, there may be some variation. The rest corresponds to Followmybid platform fees.

Where do these fees come from?

In addition to the banking fees outlined above, the service provided by Followmybid to both organizers and participants is also included in these fees.

Using Followmybid greatly enhances your auction experience compared to traditional auctions. While we keep fees as low as possible, the cost is related to platform security, the automation process, and the services we provide. Holding a Followmybid online or in-person auction saves a lot of time and money on the many steps required for organizing a fundraising event.

And that's it. There are no hidden costs, commissions, or other deductions on the total amount raised.

What are the benefits of giving the option to cover the transaction fees?

A diagram explaining the functionality of covering transaction fees with an example on a $100 bill.

Having the option to cover transaction fees is significant for both organizers and participants. Paying the fees ensures that 100% of the amount goes to the organization and the cause supported in the auction. This small amount compared to your total donation can make a big difference!

On the organizational side, the auction may cost very little if all participants choose to cover the fees.

There are various ways of asking participants to cover the transaction fees, but it is a fairly standard feature in the philanthropic sector that remains essential to ensure maximum funds for the cause despite the fees related to the event.

How does transaction fees reimbursement work?

Screenshots of the transaction fee process.

When this feature is activated, a message announcing that it is possible for a participant to cover the transaction fees will appear at the end of the Followmybid auction. As bidders prepare to pay item invoices or confirm donations, they will be asked if they wish to cover the transaction fees so as not to reduce the fundraising total.

In conclusion

We hope this blog post has given you more clear insight into the feature offered by our platform to cover transaction fees. By covering the fees, participants help organizations save money by seeing the reality of these fees that affect the charity.

Thank you in advance for your commitment to the causes you support. Please don’t hesitate to contact us if you have any further questions about covering transaction fees or any other topic.

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