Fee Recoupment Table of Contents
- Overview
- Purpose of Fee Recoupment
- How it Works - The Payment Flow
- Enabling Fee Recoupment - Configuration Steps
- FAQs
Overview
Fee recoupment — also called Platform Service Fees in GrowthZone — is a feature that allows an association to pass credit card processing costs on to the member or payer at the time of payment. Instead of the association absorbing the transaction fee on every card payment, the fee is surfaced to the payer as a separate line item during checkout.
Think of it as the digital equivalent of the “convenience fee” you’ve seen at event ticket sites or government payment portals — a transparent, disclosed charge that offsets the processor’s cost.
Purpose of Fee Recoupment
- Associations absorb credit card fees on every transaction. For high-volume orgs (especially those that bill quarterly or have a large debit/credit mix), this adds up fast.
- Fee recoupment shifts that cost to the payer, reducing the organization's effective processing cost.
How It Works - The Payment Flow
Here is a look at the payment flow with fee recoupment enabled at 4%. This percentage is an example; the actual percentage may vary.
Here is a quick comparison between payments with and without fee recoupment.
Stripe with Fee Recoupment
GZ Pay is built on Stripe. When fee recoupment is enabled, GZ Pay uses a Stripe Connect pass-through model to add the platform service fee to the transaction. This is different from a surcharge — it’s a gateway add-on fee applied at the platform level, not a percentage markup on the card processing rate.
Refunds
For customers that have enabled fee recoupment: there is an additional option during the refund process. The "Refund platform fee to payer" option works as follows:
- If the option is checked, then the member gets the full amount (item cost + platform service fee) back - and the entire amount comes from the association.
- If the option is not checked, then the member would only get the item cost back.
Enabling Fee Recoupment - Configuration Steps
You can enable Fee Recoupment through your GrowthZone settings.
- Go to Setup.
- Under Finance, select Payment Gateways.
- Select the GZ Pay Settings tab.
- Scroll down to the Fee Recoupment checkbox.
- Click the SAVE button to save your Fee Recoupment enablement.
Frequently Asked Questions
Q: What is the rate for Fee Recoupment?
A: Great question! There isn't a single flat rate we can quote because Fee Recoupment is designed to flex based on a few factors specific to your organization's use of the platform. Rather than a one-size-fits-all number, the fee reflects the cost of using the GrowthZone platform to process and manage your transactions — so it's tailored, not fixed.
Q: Why isn't there just one set rate?
A: A few things go into it. The fee can vary based on factors like transaction type, your organization's volume, and how the feature is configured for your account. That flexibility is intentional — it keeps the fee aligned with the platform services your organization is using, rather than applying a blanket charge that wouldn't fit every situation.
Q: So how do I find out what my organization's rate is?
A: The applicable fee is set up at the account level, so the best person to confirm the specifics is your organization's account administrator — they'll have visibility into how it's configured for you. If you'd like, I can connect you with your account team, who can walk you through exactly how it applies to your organization.
Q: Is this the same as a credit card surcharge?
A: No — it's a platform service fee, which is a distinct concept. It's tied to the cost of using the GrowthZone platform for your transactions, not a surcharge on a particular card. Happy to explain the difference in more detail if that's helpful!