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Donation processing fee for PayPal and SquareSpace?

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Hello! Hoping this is a quick and easy question. I have a non-profit client that recently launched on SS. They use Paypal to collect donations, which already charges them a 3% fee to process transactions. We've noticed that SquareSpace charges an additional 3% fee on top of the PayPal fee. Is there any way to avoid this with Squarespace since they are a registered non-profit entity? Unfortunately, it makes a really big impact to part ways with 6% of every donation they receive and I would like to provide them with a better solution since they are paying Squarespace for all the business features. 

Thank you and please let me know!

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  • Solution
On 3/1/2023 at 9:14 PM, RDIGITAL said:

We've noticed that SquareSpace charges an additional 3% fee on top of the PayPal fee.

This is the Squarespace transaction fee on Business plans. When a client is on a Business billing plan and they collect donations through Squarespace, they'll be charged a 3% transaction fee on top of the payment processing fees. To avoid the 3% Squarespace transaction fee, they can upgrade to a Commerce billing plan (Basic or Advanced), although these plans are obviously more expensive. 

A potentially more attractive solution is to embed a PayPal donation button on the Squarespace website so they can receive the donations directly through PayPal, avoiding the Squarespace transaction fees. I don't know where they are based but PayPal offers confirmed charities a lower processing rate and there would be no Squarespace transaction fee, so they'd receive more money to support their cause. 

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It's easy to add a PayPal donate button to a Squarespace website. A PayPal account holder can create a button for a campaign by visiting https://www.paypal.com/donate/buttons and then logging on to their PayPal account. Using this method, they can also show a checkbox that offers donors the option to increase their donation to help offset the cost of fees.

I hope this helps. Please post back if you need more information.

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  • 1 month later...
On 3/5/2023 at 6:58 AM, paul2009 said:

It's easy to add a PayPal donate button to a Squarespace website. A PayPal account holder can create a button for a campaign by visiting https://www.paypal.com/donate/buttons and then logging on to their PayPal account. Using this method, they can also show a checkbox that offers donors the option to increase their donation to help offset the cost of fees.

I hope this helps. Please post back if you need more information.

Did this help? Please give feedback by clicking an icon below  ⬇️

So I currently have the Commerce Basic plan for a non-profit I work with. That means there are 0% transaction fees.... but the donate button on the website is a link to our paypal donation site. 

If im understanding you correctly I don't need to have the commerce plan because im not using squarespace to handle the donation transaction, correct?

This would save us money every year. I guess I was confused when I first created the website and thought they would still charge me even though I was using paypal .

 

The website is www.lvcap.org if you want to check out my donation link.

 

Thanks in advance!

 

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