Overview
Client's often ask, "Can the patron pay all AGS fees? Printing, mailing, and payment processing?"
or
"Can AGS charge my member if they request a classic pass mailed to their home but not charge if no pass is mailed?"
Yes, but read carefully how it works.
Here is how the AGS printing, mailing, and payment processing fees work.
The fee for AGS to print a pass is $1 per pass. The fee for mailing one or more passes is $3. The fee for collecting a payment is 4.9%+$1 based on the total money collected from the patron.
If AGS is...
1. Printing a pass
2. Mailing a set of passes
3. Collecting a payment from the patron
Then the community will be charged all three fees.
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.
How to closely match AGS fees.
The application must be setup where the community is charging the member slightly higher than AGS charges the community.
A common way to setup the community's application is to charge the member $6 for the first pass and $1 for each additional pass.
Here is an example
A family completes an application. The Mom selects an ePass, the Dad selects Classic Pass, the Daughter selects Classic Pass. In this case, 2 passes are printed, 1 set is mailed. $7.00 is collected from the family.
$7.00 is credited to the community's account. Because $7.00 was collected from the family.
$1.34 fee is accessed to the community. Because $7.00 was collected from the family and a payment processing fee was accessed. $7.00 * 4.9% +$1 = $1.34
$2.00 fee is accessed to the community's account. Because 2 passes were printed.
$3.00 fee is accessed to the community. Because 1 set of passes were mailed.
Notice the net result for this single example's lifecycle is a $0.66 profit for the community.
$7.00 - $1.34 - $3.00 - $2.00 = $0.66
Here is another example
A family completes an application. All three family members elect ePasses. In this case, 0 passes are printed, 0 sets are mailed. $0.00 is collected from the family.
No money is credited to the community and no fees are accessed to the community.
How does this effect my community's invoice or payout?
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 the payout if the account is reconciled in between when the member pays and the passes are approved to print and mail. This usually happens on the 1st of the month.
Lets look at the same example
A family completes an application and requests 2 passes. $7.00 is collected from the family. On July 28th.
July 28th - The family pays.
$7.00 is credited to the community's account. Because $7.00 was collected from the family.
$1.34 fee is accessed to the community. Because a $1.34 payment processing fee was accessed.
August 1st - The account is reconciled.
$5.66 payout is issued to the community. Because the community has a credit in the account.
August 3rd - The community approves the membership and passes are printed and mailed.
$2.00 fee is accessed to the community's account. Because 2 passes were printed.
$3.00 fee is accessed to the community. Because 1 set of passes were mailed.
September 1st - The account is reconciled.
$5.00 invoice is sent to the community. Because the have a balance for the passes printed and mailed.
Notice the net result for this single example's lifecycle is still $0.66 profit for the community.
$7.00 - $1.34 - $5.66 - $3.00 - $2.00 + $5.00 = $0.66
Since there was a large gap in time from the original money collected and the time the passes were approved, this set of transactions happens over two separate statements.
Why doesn't AGS match the fees penny for penny?
Most communities elect to display the fees on the pool's application. This way the patron knows what they are paying, how it is calculated, and what they are paying for. Since the payment processing fee is a percentage calculation, combining the mailing and payment processing fee, then rounding up to an even $5.00 is much easier math for the patron to understand. In addition, the community gets to profit the few cents left over.