Also, Stripe calculated its processing fee out of security deposit as well. Is it a normal process that guests pay multiple fees (Service Fee and Stripe fee) for a security deposit? It increases the price per night significantly then.
There is 10% service fee in this example. Imagine having security deposit $500. The price per 1 night would be then $160 instead of $110.
It seems like it works correctly. The listing price equals $100, and the security deposit equals $100. It is $200 in total. So if you set the user commission rate to 10%, the Service Fee equals $20, as in your order on your screenshot.
Stripe takes an additional commission for payments and this depends on different reasons which you can find on their website. So you can only cover the Stripe commission by exposing a commission for users or vendors
But, it’s a deposit. Something theyre going to get back. I think that’s the issue. It shouldn’t be charged $50 for a $500 deposit when they’re getting that back, no? How does that work?
I confirmed with Stripe and they don’t distinguish between a payment or a deposit. It is all processed as a payment and they charge all applicable fees for the entire amount.
In my example the Stripe processing fee would be $19.44 (2.9% + $0.30 from the total amount $660). Meaning if you would calculate the Service Fee (10%) from $100 only, you would get $10 as your commission. But, your actual cost for processing Stripe transaction would be $19.44, so $9.44 loss for you.
It is strange, but in this case it make sense to charge a service fee from a deposit as well to cover the costs. Not sure how other platforms deal with that. Because this way it increases the total price quite significantly.
If anyone has an idea or anything to add please share. Thanks.
Yes, commissions (those HivePress ones, for vendors and buyers) shouldn’t be added for the security deposit amount since it’s returned in 99% of cases. This bug is confirmed and we’ll fix this, unfortunately there’s nothing we can do with payment fees charged by third-party platforms like Stripe, please consider setting higher commission rates on your site to cover these possible fees.
