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How to charge your customers a fee to cover VaocherApp fee

What fees are involved

We know that our fee + your payment processor fee can be around 5% in total, so, if you want or need to, you can collect a fee from your customers during checkout to help cover some (or all) of these fees.

By default we do not set up your account to charge a "service fee", but it's really easy to collect a service fee to help pay for both our fees and your payment processor fees.

Note: you'll get paid this "service fee" in full as we don’t charge our fee on the service fee. For example, if you’re selling

  • $100 gift voucher + $6 service fee = $106 (the final price that your customers will have to pay)
  • Our fee will be 3% out of $100, which is $3

The hidden value of expired / unused gift vouchers

Do bear in mind that the gift vouchers you issue may expire (if you've set that up) and regardless of that, some will inevitably just go unused. This usually always covers our fee and your payment providers fee easily.

As a guideline, if you set a 12-month expiry you will likely see a 10-15% non-redemption rate over the course of a full year. If you have no expiry set, you will still benefit from a 5-7% non-redemption rate.

Knowing this in advance, you may decide to not pass on a service fee to your customers and enjoy even more sales.

How to charge your customers a service fee

In some jurisdictions, charging processing fees to your customers is prohibited by law. It is your responsibility to act in accordance with applicable law.

VaocherApp service fee is per menu item basis. That means you can charge different fees on different selling items. This allow you to have greater control on seasonal items such as Chrismas or new year.

To set up a service fee:

  1. Visit VaocherApp -> Items for sale and select the item you want to charge service fee
  2. Click "Show advanced fields" at the bottom then click "Service fee" section
  3. Turn on the "Apply service fee"

From here, you will be able to charge a fixed or percentage amount, or both. For example:

  • charge fixed amount of $5 every order placed
  • charge a 10% of total amount (e.g. buying $100 voucher, will need to pay $110 in total)
  • charge fixed amount of $5 plus 10% total (e.g. buying $100 voucher, will need to pay $115 in total)

How the service fees are calculated

Percentage fee will be calculated first before the fixed fee. Take the 3rd example above, when charging $5 and 10%, the final amount will be calculated:

Voucher price x (1 + percentage fee) + fixed fee

This is equivalent to $100 x (1 + 0.1) + $5 = $100 x 1.1 + $5 = $115 (note that 10% is equal to 0.1)

How to cover VaocherApp fee only

To cover just our fee, you just need to set the percentage fee to be 3%, no need for a fixed portion alongside.

How to cover VaocherApp fee only

How to cover both VaocherApp fee & payment fees

If you want to completely cover our fees & your payment processor fee, just add them together.

Let say if your payment processor charges 1.75% + $0.30, set the fixed service fee to $0.30 and the percentage fee to 4.75% (3% VaocherApp fee + 1.75% payment fee)

How to cover both VaocherApp fee & payment fees
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Published on November 30, 2020

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