The Hidden Cost of Credit Card Processing
Most payment processors charge around 2.9% + $0.30 per transaction. That sounds small until you do the math:
- 100 players × $150 = $15,000 → ~$465 in fees
- 144 players × $175 = $25,200 → ~$760 in fees
- 200 players × $200 = $40,000 → ~$1,190 in fees
For charity tournaments, that's money that could go to your cause. For corporate outings, it's margin you're giving away.
ACH vs. Credit Card: When Each Makes Sense
Credit cards
- Convenient for players
- Instant confirmation
- Higher fees (typically 2.9% + $0.30)
- Best for: Most registrations, especially individual players
ACH (bank transfer)
- Lower fees (typically 0.8% or less, often capped)
- Takes 3–5 days to clear
- Requires bank account info
- Best for: Large payments, sponsors, corporate foursomes
The trade-off is convenience vs. cost. Most players prefer credit cards for small transactions. But for a $2,500 sponsorship or a $600 foursome, ACH can save real money.
Stripe Fee Breakdown for Golf Tournaments
If you're using Stripe (which most modern platforms do), here's what you're paying:
- Credit/Debit cards: 2.9% + $0.30 per transaction
- ACH Direct Debit: 0.8%, capped at $5 per transaction
Example comparison for a $600 foursome:
- Credit card: $17.70 in fees
- ACH: $4.80 in fees (or $5.00 if capped)
- Savings: ~$12–13 per transaction
For 20 foursomes paying via ACH instead of credit card, that's $240+ saved.
How to Offer Both Without Confusing Players
The key is making credit card the default (it's what most people expect) while offering ACH as an option for those who want it.
In your checkout flow:
- Show credit card as the primary payment method
- Add "Pay by bank transfer" as a secondary option
- Explain the benefit: "Save on processing fees — more goes to [cause]"
Don't force the choice or over-explain. Most players will use credit cards, and that's fine. The savings come from the sponsors and corporate buyers who opt for ACH.
Should You Pass Fees to Players?
Some organizers add a "processing fee" to cover credit card costs. This is legal in most states, but consider:
- Pros: You keep 100% of registration revenue
- Cons: Players see a higher total at checkout, which can reduce conversions
If you do pass fees, be transparent. Show the breakdown clearly so players understand what they're paying and why.
An alternative: Build fees into your pricing. If you want to net $150 per player, price registration at $155. Simpler for everyone.
Tax Implications and Receipts
For charity tournaments, players often want documentation for tax purposes. A few things to know:
- Registration fees are generally not tax-deductible if the player receives something of value (golf, food, prizes).
- Donations above fair market value may be deductible. If registration is $150 but the golf/meal value is $100, the $50 difference might be deductible.
- Always consult a tax professional for specific guidance.
Your registration system should generate receipts automatically. Make sure they include your organization's name, EIN (if applicable), and event details.
Real Example: Savings Over a Season
Let's say you run 4 tournaments per year with an average of $25,000 in registrations each:
- All credit cards: ~$750 in fees per event → $3,000/year
- 20% of payments via ACH: ~$600 in fees per event → $2,400/year
- Annual savings: $600
For larger events or more tournaments, the savings scale. A single organization running 10 events could save $1,500+ annually just by offering ACH.
Final Thought
Payment processing fees are a cost of doing business, but they don't have to eat into your fundraising. Offer ACH for large transactions, price strategically, and track your costs. Every dollar saved on fees is a dollar that goes to your cause.
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