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Alert Pay fees - what am I doing wrong?

by Lazersam1
16 replies
Hi Warriors

I am trying to calculate alertpay fees. I understand them as 4.9% and $0.25.

So am I to presume that if I want to receive $100 the customer needs to send me $105.15 as this is $4.90 + $0.25 added.

When I use this calculator 'AlertPay Fees Calculator by Ryan Olbe' and input $100 the result is $105.42 - am I wrong or the calculator?

Many thanks
#alert #fees #pay #wrong
  • Profile picture of the author IcedSEO-CEO
    Banned
    I really don't know which one is wrong since I don't use alertpay very often but I figured, either way you win. with your own calculations, you get what you think is the correct value but with ryan's calculator, you get extra 28 cents.

    I will rather put my bet on ryan's calculator in case the whole thing is the other way round so that I don't lose
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    • Profile picture of the author laurencewins
      I personally prefer Paypal. The few occasions I had to use Alertpay, I got hit with some pretty high fees and it was a lot of hassle as well.
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      Cheers, Laurence.
      Writer/Editor/Proofreader.

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      • Profile picture of the author maoxseo
        thanks for sharing this..
        i've alertpay account..but until now not yet use it..lol..
        having it just for my backup..maybe one i'll use it..
        i'm waiting for that day..
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  • Profile picture of the author IcedSEO-CEO
    Banned
    alertpay is currently seizing my money over some birthday issues (till I reach 18), sucks... I made mistake of trusting them in the first place
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    • Profile picture of the author John Rogers
      Originally Posted by IcedSEO-CEO View Post

      alertpay is currently seizing my money over some birthday issues (till I reach 18), sucks... I made mistake of trusting them in the first place
      Your angry because you violated the terms you agreed to when you registered and they caught you?
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  • Profile picture of the author askloz
    no, its deducted from the sale amount I believe...

    Originally Posted by Lazersam1 View Post

    Hi Warriors

    I am trying to calculate alertpay fees. I understand them as 4.9% and $0.25.

    So am I to presume that if I want to receive $100 the customer needs to send me $105.15 as this is $4.90 + $0.25 added.

    When I use this calculator 'AlertPay Fees Calculator by Ryan Olbe' and input $100 the result is $105.42 - am I wrong or the calculator?

    Many thanks
    Signature
    HEADS UP - EVEN NEWER -->> 27 Dollar FX Systems - Ultimate Golden Cross - FX Signal Book
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  • Profile picture of the author Lazersam1
    I am using Alertpay because I am sharing an affiliate payment across several tiers of affiliates - this constitutes a MLM program which PayPal won't entertain (for some strange reason). Any hows - I might just add 5% or 6% to cover myself.
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  • Profile picture of the author John Rogers
    Ask Alertpay directly what the fees are. When you start doing things like converting currencies, the fees go up (as with Paypal). Also, if you're engaging in business that the credit card companies consider high risk (such as MLM), the fees are higher as well.
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  • Profile picture of the author Lazersam1
    Just got an excellent response from Ryan Olbe explaining why I was getting it wrong. His calculator is spot on!


    Hey Larry,

    I get these kinds of e-mails from time to time, so let me try to explain it. The fees on a $100 payment are $5.15 (4.90% + $0.25) and the calculator will tell you that if you use the calculator on the right side of the screen. If you type in $100 into the box labeled "If a person sends you:" it will show your fees as $5.15 and your Net Amount as $94.85.

    You were most likely using the calculator on the left side of the screen. This is a more advanced version of the calculator that is used for a different purpose. The calculator on the left side of the screen tells you what to charge so that after fees are subtracted you can receive the amount you want. This is called a "Reverse Fee Calculator".

    If you type $100 into the "Reverse Fee Calculator" it tells you to charge $105.42. This isn't telling you that the fees on a $100 payment are $5.42. It's telling you that if you wanted to receive exactly $100.00 after fees you would need to charge exactly $105.42.

    Here's a fee-breakdown showing why this is...

    $105.42
    -4.9% (4.9% of $105.42 is 5.16558)
    -$0.25 Fixed Fee
    =100.00442 (rounds to $100.00)

    Now watch what the fees would be on a $105.15 payment...

    $105.15
    -4.9% (4.9% of $105.15 is 5.15235)
    -$0.25 Fixed Fee
    =99.74765 (rounds to $99.75)

    You can see that to receive exactly $100 after fees you would need to charge exactly $105.42. $105.15 will be close, but it will not leave you with exactly $100.00 after fees. Because AlertPay fees are percentage-based and not flat amounts the fees on a $100 payment are not the same as a $105.15 payment. That is why you can't just calculate the fees on $100, then add them to $100 to determine what to charge. You have to use a more advanced formula which actually looks like this...

    AMOUNT_TO_CHARGE = (AMOUNT_YOU_WANT + FIXED_FEE) / (1 - PERCENTAGE)

    -Ryan
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  • Profile picture of the author SpiderZq
    Why alertpay charging me too much fee? My account is Personal Pro and his original fees on Personal Pro is (2.50% + $0.25)
    but they charge me like (3.90% + $0.59) <<< Why?
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  • Profile picture of the author Chris@AlertPay
    Hi SpiderZq,

    If you are being charged the 3.9% rate then that is because you are listed as being a merchant in one of our regulated industries. For a list of regulated industries you can see sections 6 & 7 of our User Agreement. We are charged higher rates to support these specific industries and are therefore required to raise the fees slightly for these types of businesses.

    I hope this explains things,

    Chris z
    Online Community Support
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    AlertPay.com
    Follow AlertPay on Facebook, and @AskAlertPay on Twitter!
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  • Profile picture of the author rondo
    Chris@AlertPay while you're here can you please clarify something for me.

    Does a buyer need to have an Alertpay account in order to pay with a credit card?

    and

    Does a buyer need to have an Alertpay account in order to pay a subscription with a credit card?


    Thanks,
    Andrew
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    Online courses
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  • Profile picture of the author Chris@AlertPay
    Hi Rondo,

    A buyer does not need to have an account to make a payment or subscribe to a reoccurring payment service. When a buyer makes their first payment through our system their details are kept on file which allows them to make subscription payments and the like.
    We do send them an email asking them to sign up for our services but they are no obliged to join.

    Hope that helps

    Chris Z
    Online Community Support
    AlertPay.com
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    AlertPay.com
    Follow AlertPay on Facebook, and @AskAlertPay on Twitter!
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    • Profile picture of the author LB
      Originally Posted by Chris@AlertPay View Post

      Hi Rondo,

      A buyer does not need to have an account to make a payment or subscribe to a reoccurring payment service. When a buyer makes their first payment through our system their details are kept on file which allows them to make subscription payments and the like.
      We do send them an email asking them to sign up for our services but they are no obliged to join.

      Hope that helps

      Chris Z
      Online Community Support
      AlertPay.com
      I don't use AlertPay, but will probably give it a go for some of my projects simply because it's excellent to see a member of their staff posting here on the forum. You don't see that with anyone else I can recall.
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      • Profile picture of the author Chris@AlertPay
        Originally Posted by LB View Post

        I don't use AlertPay, but will probably give it a go for some of my projects simply because it's excellent to see a member of their staff posting here on the forum. You don't see that with anyone else I can recall.
        Hi LB,

        Glad you find our presence helpful, we are trying to offer our members support through as many platforms as possible! & I'm happy to hear you're gonna try our services

        Cheers!
        Chris Z
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        AlertPay.com
        Follow AlertPay on Facebook, and @AskAlertPay on Twitter!
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