Payments & Settlement

Fee Calculation Engine

Detailed breakdown of how fees are calculated, examples, and edge cases.

3 min readUpdated 2025-01-13

When you're setting a price for a retreat weekend, a kirtan night, or a single yoga class, you need to know two things before you publish: what the buyer will actually be charged at checkout, and what will land in your account afterward. Those two numbers are rarely the same, because two separate fees sit between the sticker price and the payout. This article walks through both fees, how they're calculated, and what happens in the situations that trip people up — free tickets, discount codes, donation add-ons, and very low ticket prices.

What fees actually show up on a ticket?

There are two fees, and they behave differently. The payment processing fee is 3.05% plus $0.40, and it's charged once per order, not once per ticket — so a single order for four tickets still only pays that $0.40 fixed portion one time. The same rate applies to every card, so there's no variation to plan around there.

The second fee is BrightStar's own platform fee, and it depends on the organizer's plan. Seva is free. Elevate carries a low per-ticket fee made up of a small flat amount plus a small percentage. Amplify carries a higher per-ticket fee, again a flat amount plus a percentage. Because this fee is per ticket rather than per order, it scales directly with how many tickets are in the cart. Every fee, on every tier, is shown to the buyer before they pay, in their local currency — and a ticket priced at $0 carries no fees of any kind.

How does the math actually work?

For a $100 ticket on Elevate, the platform fee is calculated first: a small flat amount plus a small percentage of the ticket price. The processing fee is calculated separately, on the ticket total, as 3.05% of the price plus the $0.40 order-level flat charge. Those two fees are added to the ticket price to get what the buyer pays; the organizer receives the ticket price itself.

One detail worth holding onto: the processing percentage runs on the ticket total, not on the ticket total plus the platform fee. The platform fee is deliberately kept outside that base. This is also why the processing fee is described as "grossed up" — the fixed and percentage rates are set so that the processor's own cut of collecting BrightStar's fee is already covered, rather than being an extra surprise subtracted later.

Do you pass fees to buyers, or absorb them?

BrightStar gives you three ways to handle this, and the choice changes who nets what — not whether the fees exist. Passing fees to the buyer is the default: on a $100 ticket, the buyer sees "$100 ticket + $6.19 fees = $106.19," and you receive the full $100.

Absorbing fees folds them into the sticker price instead. The buyer sees a clean "$100 total," and you receive $93.81 after both fees come out of that amount. Partial absorption splits the difference: you absorb the platform fee but still pass along the processing fee, so the buyer sees "$100 + $3.45 fees = $103.45" and you receive $97.26. Nothing here changes the fees themselves — it only changes whose total shows them.

What happens with free tickets, discounts, and donations?

A $0 ticket charges no fees at all, and payment processing is skipped entirely rather than attempting a zero-value charge — this is what makes free RSVPs and comped tickets genuinely free to run.

Discount codes are applied before fees are calculated, not after: a 20% discount on a $100 ticket brings it to $80, and both fees are then calculated on that $80, not the original $100. Donation add-ons work the opposite way in terms of scope — fees are calculated on the combined total of the ticket price and the donation together, since the donation becomes part of what's actually being charged.

Very low prices are where the flat portions of each fee start to dominate. A $5 ticket carrying $0.98 in platform fee and $0.55 in processing fee works out to roughly a 31% fee ratio — worth knowing before you price anything in that range, since the fixed dollar amounts don't shrink just because the ticket does.

For premium experiences priced at $200 and up, passing fees to the buyer is standard — the fee is a small fraction of the total and rarely changes a buyer's decision. For accessible or community-priced events, consider absorbing fees instead, so the price you advertise is the price people actually pay, without a fee line making a $20 class look like it costs $23.

Common questions

What fees are charged on a BrightStar ticket sale?

Two fees apply. The payment processing fee is 3.05 percent plus $0.40, charged once per order no matter how many tickets are on it, and the same rate applies to every card. On top of that is the BrightStar platform fee, which depends on the plan the organizer is on: Seva is free, Elevate is a low per-ticket fee made up of a small flat amount plus a small percentage, and Amplify is a higher per-ticket flat amount plus percentage. Every fee is shown before you pay, in your local currency, and free tickets carry no fees at all.

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Two structural details explain most of the arithmetic. The platform fee is calculated per ticket and summed across the order, so its flat part multiplies with quantity, while the processing fee is charged once per order, so its flat part does not. And the base the processing percentage runs against is the ticket total plus any event-level custom fee: the platform fee is deliberately excluded from it. The rates themselves are looked up at checkout — a per-host negotiated rate first, then the stored rate for that plan and currency, then the built-in default.

Can I absorb the fees instead of passing them to ticket buyers?

Yes, BrightStar gives you three options. Passing fees to the buyer is the default, so on a $100 ticket the buyer sees the price plus fees and you receive the full $100. Absorbing fees means the buyer sees a clean $100 total and, in BrightStar's example, the organizer nets $93.81 after the platform and processing fees. Partial absorption lets you absorb the platform fee and pass the Stripe fee, so in the same example the buyer pays $103.45 and the organizer receives $97.26.

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The switch is a single flag on the event, and it changes who bears the fee rather than whether it exists. When the organizer absorbs, the buyer's total carries no fee line, but BrightStar still collects the same amount as an application fee out of the organizer's share of the charge. It also does not move gross revenue: gross is always the ticket subtotal plus any custom fee, and fees come out of net. That is why an absorbed-fee event reports the same gross as a buyer-paid one at the same ticket price.

Are fees charged on free tickets?

No. A ticket priced at $0 on BrightStar incurs no fees at all, and payment processing is skipped entirely. That makes free tickets suitable for RSVPs and community gatherings with no cost to the organizer.

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The rule is enforced at two levels, which matters for mixed orders. Individual ticket lines priced at zero are skipped when the platform fee is summed, so a comped ticket sitting in the same order as paid ones adds neither the percentage nor the flat amount. And when the whole payable total comes to zero, processing is not attempted at all rather than a zero-value charge being sent. Both guards apply independently of the plan the event is on, so a free ticket on a paid plan is still genuinely free.

Are fees calculated before or after a discount code is applied?

After. BrightStar calculates fees on the discounted price, so a 20 percent discount on a $100 ticket brings it to $80 and the fees are computed on $80. If a buyer adds a donation, fees are calculated on the combined total of the ticket plus the donation.

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The two edge cases pull in opposite directions on scope. A discount code shrinks the base the fees are calculated on, since the code is applied first and both fees run against what's left. A donation add-on widens that base instead, since the donation is treated as part of the charge rather than a separate gift, so both the platform fee and the processing fee are calculated on ticket-plus-donation together.

Should I pass fees to buyers on very cheap tickets?

Often not, because the flat portion of each fee dominates at low prices. BrightStar's example shows a $5 ticket carrying $2.74 of platform fee and $0.45 of Stripe fee, which is a 64 percent fee ratio, so absorbing fees usually makes more sense at that price point. For premium experiences at $200 and up, passing fees to buyers is standard practice.

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Two structural points shape this. The flat part of the platform fee is charged per ticket, but the processing flat is charged once per order, so the fee ratio on a low-priced ticket improves when people buy several at a time and is worst on single-ticket orders. And the ticket price has a floor in the database: it must be either exactly zero or at least 50 cents. There is no price low enough for the flat components to disappear into rounding, which is what makes the ratio unavoidable at the bottom end.

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