About Contribution Management
We use Stipe (https://stripe.com/) to manage business contributions. Stripe is an extremely secure industry leading service that powers platforms such as Lyft, Shopify and Kickstarter. Mightiful never takes possession of your contributions. Your contributions live within Stripe until you transfer them into your businesses’s bank account.
MIghtiful does not charge processing fee on contributions in addition to what Stripe charges. We generate our revenue solely on subscription fees. This is for two reasons. One, it is to keep your platform usage costs as low as possible. (A percentage of contributions adds up quickly for successful fundraisers.) And two, we feel this pricing strategy better aligns our platform with your overall business success rather than simply the success of your fundraising.
Receiving Contribution Payouts
When a contribution is made it does not instantly transfer to your bank account. The money gets deposited into an account with Stripe and then gets transferred to your bank at a pre-determined time later. Within the Settings menu you can select your pay out schedule. The default setting is Weekly.
Note, when you start processing live payments from your customers with Stripe, you will not receive your first payout until 7–10 days after your first successful payment is received. The first payout usually takes a little longer in order to establish the Stripe account. Subsequent payouts are then processed according to your account’s payout schedule.
Contribution Processing Fees
To process payment transactions Stripe charges a transaction fee. The fee is $0.30 + 2.9 % per each transaction. For example, on a $100, Stripe collection would be:
$0.30 + $2.90 = $3.20
This fee is taken out at the time of the contribution. Therefore you would make $96.80.
Payout Processing Fees
Note, there is also a charge for payouts to your bank account. The charge for each payout is $.25 + .25% of the amount being paid out. For example, on a $100 transfer, the Stripe collection would be:
$0.25 + $0.25 = $0.50
Total Processing Costs
Here’s how much you would pay in fees if you raised $100 as a single transaction and then immediately transferred this $100 to your bank account:
Processing Fee: $3.20
Total Earned: $100 – $3.20 = $96.80
Payout Out fee on $96.80: $0.25 + $0.24 = $0.49
Total sent to bank account from the $100 raised: $96.80 – $0.49 = $96.31
(Stripe also charges a $2 month cost for having access to an account, but Mightiful covers this cost as part of your subscription)