Stripe Direct Billing

  • Updated

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In the past, this is how ticket billing worked: 

A customer purchases a ticket through the registration page of an event > Hopin receives the payment > Hopin takes the platform fees (7% for Starter plan, 4% for Growth plan) > Hopin pays the Stripe processing fees > The rest of the funds go to the organizer’s Stripe account in a lump sum every 1-2 days. 

Now with Stripe Direct Billing, here’s how it works: 

A customer purchases a ticket through the registration page of an event > The organizer receives the payment in their Stripe account > Organizer pays Stripe processing fee > Organizer pays Hopin platform fees (7% for Starter plan, 4% for Growth plan) 

Stripe Charge Ownership

With Stripe Direct, the charges will be created in the organizer’s Stripe account, and we will receive a commission (depending on the organizer’s plan) in Hopin's Stripe account. Stripe calls this the "Hopin application fee".

This means that organizers will be able to see every transaction and ticket purchases in their Stripe account, create receipts for attendees, process refunds on them, and so on.

This is what a charge will look like in an organizer’s Stripe account:

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Stripe Fees

The change in charge ownership means that organizers will now be paying the Stripe payment processing fee (depending on the country), instead of Hopin.

This means that the Hopin commission will not be inclusive of Stripe payment fees anymore.

  • For any Pro, Enterprise, Business or Unlimited price plan: If the Hopin platform fee is 2% or less, we will keep it at its current level of 2% or less. If the platform fee is above 2%, it will be reduced to 2%.
  • For any other price plan (including Appsumo, Growth, and Starter): The Hopin platform fee will remain the same. 

Note: Only events created after March 26th will be impacted by these changes. Any event created before then will remain on the former payment mechanism mentioned earlier, even for ticket sales taking place after the effective date.

Example: Growth plan customer

Take the example of a growth plan customer with Hopin platform fees of 4%.

For any ticket sales of $100 before Stripe Direct Billing:

  • Hopin receives $100 in Stripe account
  • Hopin takes 4% of 100 = $4. $96 is left
  • Hopin pays Stripe’s processing fee (2.9% + $0.30) from the $4 platform fees. In this case, (2.9% + $0.30) of $100 = $3.2
  • Hopin is then left with $0.8 commission
  • $96 is sent to the organizer’s Stripe account

For any ticket sales of $100 after the Stripe Direct migration:

  • The organizer’s Stripe account will receive $100
  • Stripe’s processing fee of $3.2 will be deducted, as well as Hopin’s platform fees of 4% = $4
  • $3.2 + $4 = $7.2 is the total amount that will be deducted from the organizer’s Stripe account, leaving the rest at $92.8

Starter plan customer

Take the example of a starter plan customer with Hopin platform fees of 7%.

For any ticket sales of $100 before Stripe Direct Billing:

  • Hopin receives $100 in Stripe account
  • Hopin takes 7% of 100 = $7. $93 is left
  • Hopin pays Stripe’s processing fee (2.9% + $0.30) from the $7 platform fees. In this case, (2.9% + $0.30) of $100 = $3.2
  • Hopin is then left with $3.8 commission
  • $93 is sent to the organizer’s Stripe account

For any ticket sales of $100 after the Stripe Direct migration:

  • The organizer’s Stripe account will receive $100
  • Stripe’s processing fee of $3.2 will be deducted, as well as Hopin’s platform fees of 7% = $7
  • $3.2 + $7 = $10.2 is the total amount that will be deducted from the organizer’s Stripe account, leaving the rest at $89.8

 

Feel free to reach out to us at support@hopin.com in case you have questions or need assistance.

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