An honest discussion about the checkout page of a registration form is something parents can relate to. The awkward moment comes when you have completed a long process filling out medical waivers, sizing for jerseys, and selecting practice slots, or whatever else; and finally reach ‘submit.’ Instead of just submitting, now you also have to deal with charges and fees adding another 3% to your total fees. This $3 fee may seem like a small addition to your total price; at that moment, it is an additional got-cha.
From a club owner or administrator perspective, the feeling is much different than based on the same process from the parent side. You know by not charging for the processing fee, you will take a 3% pay cut on every player in your club, which could total $3,000 removed from your club’s $100,000 budget, meaning credit card companies made out with your $3,000. Think of the things your club could do with that money; new goal posts, a dozen top notch cricket bats or a scholarship for a player who can’t afford to play.
So, the real question for clubs is, should you charge for processing fees or eat the fee? The answer is to weigh the benefits of “Transparent Billing” vs “User Experience.” And as of 2026, the answer to this question really comes down to strategy more than just math.
The “Hidden” Cost of Doing Business
When discussing the processing fee for registering for a sporting event, the fee is not just a random dollar amount, either. The fee is often referred to as the ‘Stripe tax’ or ‘Square slice,’ as most modern processors, including Stripe for sporting teams, charge almost $0.00 – $0.15 in addition to a transaction fee of about 2.9%.
Years ago, we used to avoid these fees and asked players to pay via checks; however, thanks to technology, we no longer have to chase after people to get their money as much because of paper checks in 2026 will be as difficult to locate as trying to find a pay phone located in a store. Using digital payment methods is the norm now and is easier for everyone, but there is a cost associated with that convenience.
Why is it so weird to discuss fees?
- Nickel/Diming: Parents often already have a large financial commitment to gear, travel,registration fees, and when it comes time to pay they will feel like you are trying to prepare them for taking advantage of them.
- Margin: If you are running your operation with thin margins, you may end up with a loss by eating these fees.
- Compliance: Depending on where you are located, the rules regarding ‘surcharging’ may be entirely different based on location. Be sure to check your local regulations when surcharging for credit cards as all surcharges usually are required to be clearly identified.
Strategy 1: The “Bake It In” Strategy – (The Silent Way of Absorbing an Added Cost)
Many high-end academies simply increase their tuition prices across the board by 3% and absorb the fee. This is the best way to make it seamless for a parent, as they will see one number of ($515 versus $500 plus $15) when checking out.
Pro: There is no friction at checkout as the price is what it says.
Con: You essentially overcharged those who would have paid using a less expensive method (such as ACH) to offset the cost of those who paid with a credit card.
Verdict: This is best for “premium” clubs because many parents will not be as concerned about a couple of extra dollars, but will lack the level of transparency that some communities are looking for.
Strategy 2: The “Line Item” Approach (Total Transparency)
The idea behind this is to communicate clearly to your customers which fees are associated with their order. In this case, you would say, “The club will receive $500 and $15 goes to the credit card company.” The club is providing the goods – they are not the vendor – therefore they must pay the credit card processing fee.
Pros: It meets your club’s operating budget perfectly. You know exactly how much revenue you will receive from membership dues.
Cons: Some parents may experience a feeling of “cart abandonment” when they see the additional processing fee, and there may be some dissatisfaction among your club members on your Facebook group.
Verdict: If you explain the reasons for the additional processing fee to your membership, this is the most “honest” option you can offer. Most parents realize that they do not want their club to pay for the airline miles or rewards points that were earned by using a credit card to make a purchase through the club.
ACH vs Credit Cards – The Secret Weapon for Finding a Solution for Clubs
If you want to be the hero of your club’s finances, then you should be talking about ACH (Automated Clearing House). ACH is a direct transfer between bank accounts without using a credit card; therefore, while credit cards typically incur an average of 3% in transaction fees, ACH typically incurs a small fee (usually less than $5) regardless of the total transfer amount.
Why ACH is the Way of the Future for Youth Sports:
Huge Savings: Credit cards cost you $60 on a $2,000 travel fee (3% transaction fee). On the other hand, ACH would only charge $5 to $10 (assuming $10 is used as a maximum) on a $2,000 travel fee for that same account (assuming $10 is used as a maximum). If you multiply those savings by the number of players (50), then you can save $2,750 total.
Less Likely to Fail: Unlike credit cards, your bank account will not change very often, so any/all recurring payments to the club will be more stable than using a credit card.
The Best Approach is to Provide Both Payment Options: Provide both payment methods to parents with the following message/choice: “You can pay by credit card with a 3% transaction fee, or you can use ACH/Bank Transfer with a $0 transaction fee.”
True Story 1: Based on our experiences, 60-70% of parents will choose the $0 ACH option over paying $30-$20 more with a credit card. This is beneficial for both the club and the parents. The clubs receive 100% of the registration fees, and the parents save money.
The Psychology Behind the “Convenience Fee”
By 2026, convenience is the norm for consumers. We pay for Uber Eats’s deliveries, the “convenience fee” associated with getting tickets to a concert, and we pay for shipping and handling. It isn’t the fee that matters; it’s what it’s called.
Rather than using the terms “Credit Card Penalty” or “Administrative Charge,” use “Digital Processing/Security Charge.”
Examples of Acceptable Alternatives to the Fee:
- “To process payments securely and to register users immediately, 3% will be added to credit card payments for Processing Fees.”
- “You will not incur any processing fees by using Bank Transfer (ACH) at the time of checkout (3% savings).”
- “This charge is sent directly to our payment processor and allows us to keep your financial and personal information secure.”
- When you explain to a consumer that the fee they are paying is not going into your pocket, but instead, it is being used to pay for the security this platform provides them as well as making it convenient for them to use the platform, the “gotcha” feeling will go away.
How Technology Makes This “Automatic”
Although 2010 was a difficult year for managing multiple fees based on type of payment because of having to keep track of several different Excel spreadsheets and equivalent numbers using a calculator, today there are computer programs like Waresport which allow you to instantly calculate these fees using the logic built into it.
A Current Billing Dashboard Offers:
- Automatic Fee Scheduling: Automatically adds the 3% fee if a credit card is entered and removes it if a bank account is entered.
- Quick and Easy Reporting: Treasurer can easily see both “Gross Revenue” (cost paid by parents) and “Net Revenue” (funds retained by the club) without doing any calculations.
- Regular Notifications: E-mails you reminders to send if a payment fails after attempting to process it (via ACH or via a Credit Card) so that the club doesn’t have to send an annoying email reminder themselves.
Your Club’s Billing Policy – 10 Pointers for Establishing the Billing Policy You Want to Have for your Club
If you are assessing your fees at the start of this next season, here are some “best practices” to keep in mind:
1. Be Up Front: Inform your prospective members of what the processing fees are within the “Registration Information” so that they are aware of them prior to checkout.
2. Provide Free Options: Parents should always have the option of paying without a fee (ACH/Bank Transfer) to make them feel like they have a choice in how to pay.
3. Accurately Identify: Use terms such as “Technology Fee” or “Processing Fee,” not “Credit Card Surcharge.”
4. Be Aware of Your Numbers: Assure that you take all fees into account (Flat fees such as $0.30 per transaction and percentage fees).
5. Review Your Software: Check that your registration software is not “double looking” by charging their own fee in addition to Stripe’s fee.
6. Use One Dashboard: You want to view billing, registration, and attendance services in one place to determine if those who do not pay as they should also fail to pay those fees.
7. Be Consistent: When you waive a fee due to one parent complaining, you may cause the “hang-up” amongst the other parents finding out, putting you in a “word of mouth” nightmare.
8. Educate Your Board: 3% is not just “a little bit” of a dollar; It equals a good portion of your scholarship or equipment cost.
9. Monitor Your Failures: ACH is cheaper; however, you may experience delays in payment through ACH. Ensure that your software shows “Pending” vs. “Cleared.”
10. “Grandfathering Rule”: When you begin charging fees for the first time, make it clear as to the reason you are doing this. For example, to keep costs of registration down, we are changing to a more transparent way of tracking all the costs related to the registration process.
Conclusion: It’s About Choice, Not Fees
Why is a transparent billing model important? Parents care about two things at the end of the day: their money and their time. When you offer both credit card convenience and ACH savings with a transparent billing model, you give them respect for both.
By offering a choice between convenience or saving time, you are not “charging them more”. You are providing your parents with the choice of how they want to pay, either by using a credit card for easy convenience or by taking an extra 2 minutes to set up their bank account, and thus saving them money. By being honest in this way, you build trust in your parents and protect your club’s margin, knowing that the funds intended for kids will make it to kids and not be siphoned to the big banks.
Stop allowing the big banks to take 3% of your hard-earned revenue. Use an automated billing system that provides both you and your parents with clarity.
Are you ready to see how a transparent billing model can help your club save thousands this season? [Schedule a demo with Waresport now!]