Overview
Communities often ask, "Can the patron pay the cost to print and mail passes?"
Read carefully how pass printing and mailing fees effects your balance, payouts, and invoices.
Here is how AGS's printing, mailing, and payment processing fees work.
If AGS is...
1. Printing a pass
2. Mailing a set of passes
3. Collecting a payment from the patron
Then the community is charged three separate fees. A separate line item in the account for each fee type.
If AGS is...
1. Not printing a pass
2. Not mailing any passes
3. Not collecting collecting a payment from the patron
Then the community is not charged any fees and has zero line items in the account. This is important because if passes are not approved, AGS does not charge the community pass or mailing fees.
A common way to setup the community's application is to charge the patron pass, mailing and processing fees.
In all scenarios, it is the community charging a fee to the member. Not AGS charging the member directly.
- There is sometimes a miss-conception that AGS charges the member directly. This is never the case. From the member's POV there is only one single transaction, there is not a 1st transaction for payment processing, then a 2nd transaction for pass printing & mailing.
Here is an example (#1)
A family completes an application. $8.50 is collected from the family. 2 passes are requested to be printed and mailed. At a later date, the 2 passes are approved, printed and mailed.
$8.50 is credited to the community's account. Because $8.50 was collected from the family.
$1.42 fee is accessed to the community. Because $8.50 was collected from the family and a payment processing fee was accessed. $8.50 * 4.9% +$1 = $1.42
$2.50 fee is accessed to the community's account. Because 2 passes were printed.
$4.00 fee is accessed to the community. Because 1 set of passes were mailed.
Notice there are 4 separate line items in the account. The net result for these 4 transactions is a $0.58 profit for the community.
$8.50 - $1.42 - $2.50 - $4.00 = $0.58
This scenario, AGS calls "Closely Matching" AGS's fees.
Here is another example (#2)
A family completes an application. $7.89 is collected from the family. 2 passes are requested to be printed and mailed. At a later date, the 2 passes are approved, printed and mailed.
$7.89 is credited to the community's account. Because $7.89 was collected from the family.
$1.39 fee is accessed to the community. Because $1.39 was collected from the family and a payment processing fee was accessed. $7.89 * 4.9% +$1 = $1.39
$2.50 fee is accessed to the community's account. Because 2 passes were printed.
$4.00 fee is accessed to the community. Because 1 set of passes were mailed.
Notice there are 4 separate line items in the account. The net result for these 4 transactions is a $0.00 profit for the community.
$7.89 - $1.39 - $2.50 - $4.00 = $0.00
This scenario, AGS calls "Exactly Matching" AGS's fees.
Why am I receiving invoices & payouts?
Communities are charging their members in a single transaction. AGS fees are accessed in three different transactions that happen at different times. This timing effects payout & invoices when the account is reconciled. Accounts are reconciled on the 1st of the month.
In other words, if an application is submitted...then the account is reconciled... then passes are approved, this effects your payouts & invoices. I higher than expected payout occurs the first month, then a lower than expected payout or invoice happens the next month.
Lets look at example #1 again
A family completes an application and requests 2 passes. $8.50 is collected from the family. On July 28th. A $0.58 payout is expected.
July 28th - The family purchases 2 passes.
$8.50 is credited to the community's account. Because $8.50 was collected from the family.
$1.42 fee is accessed to the community. Because a $1.42 payment processing fee was accessed.
August 1st - The account is reconciled and statement sent.
$7.08 payout check is mailed to the community because the community has a credit in the account. $8.50-$1.42 = $7.08 Credit to the Community (Payout)
August 3rd - The community approves the membership and passes are printed and mailed.
$2.50 fee is accessed to the community's account. Because 2 passes were printed.
$4.00 fee is accessed to the community. Because 1 set of passes were mailed.
September 1st - The account is reconciled and statement sent.
An invoice is sent to the community for $6.50 because there is a balance due. $2.50 + $4.00 = $6.50 Due to AGS (Invoice)
September 15th - The community pays the Sept. 1st invoice by writing a check to AGS.
$6.50 is credited to the community's account for the paid invoice.
Notice the net result for this single example's lifecycle is still $0.58 profit for the community.
$7.08 payout - $6.50 invoice = $0.58 profit for the community
Since this lifecycle happens over two separate statements, a single payout check of $0.58 is not sent on Aug 1st. Passes were not approved until after Aug 1st.
Can I turn off payouts so I don't get a small payout one month then a small invoice the second month?