Credit Card Processing for Nonprofit Youth Sports Clubs: Who Pays the Fees

1. Nothing is free: what it costs to accept payments

Every way of collecting money costs something. Card payments carry processing fees, usually around 3% of each payment. Payment apps charge businesses too; Venmo's business profiles, for example, pay a fee on every payment they receive (the Venmo guide covers the details). Bank transfers (ACH) typically cost far less than cards, but they aren't free either. Cash and checks cost time, trips to the bank, and money that goes missing.

So the question is never whether your club pays for payments. It's who pays, and how you talk about it.

Here's an illustration. A club collects $18,000 in season fees. If every family pays by card at about 3%, processing costs roughly $540 for the season. If half of those families pay by ACH instead, the total drops well below that. Either way, it's a real line in the budget, and it's one you can plan for.

2. You have two choices: absorb the fees or pass them on

Both are legitimate. Many clubs pick one without thinking it through, then switch halfway when families complain. That's where the trouble starts.

3. Why passing fees on so often backfires

Nobody likes a fee. A family that sees "$1,500 season fee + 3% card fee" will push back, and that's a completely reasonable reaction. Most of us would do the same.

What happens next is predictable. A few families object to paying an extra $10 or $20. The club doesn't want the argument, so it waives the fee for them. Now some families pay the fee and some don't, the club absorbs part of the cost anyway, and everyone has had an awkward conversation about money that didn't need to happen.

The fee was never the real problem. The problem was how it was presented. Passing fees on is a pricing decision, but it lands as a marketing mistake: it puts a small, annoying number in front of families at the moment they're paying, and invites them to negotiate it.

4. State one price that includes everything

The most successful clubs don't talk about processing fees at all. They set one price, include everything in it, and give families a single number to manage.

To set an all-in price:

1. Add up the season's costs: league and tournament entries, facility time, uniforms, coaching, insurance, and equipment.
2. Add processing as its own budget line. About 3% of expected fees is a safe planning number if most families pay by card.
3. Divide by the number of players, then round to a clean number.
4. Publish the price with what it includes, and don't list processing as a separate charge.

For example:

Families see one number, the club covers its real costs, and the fee conversation never starts. If families ask about payment options, point them to payment plans rather than a discount.

For help building the budget behind the price, see the travel baseball guide.

5. If you do pass fees on, follow the rules

Some clubs still choose to pass fees on. If you do, the rules are stricter than most people expect. This section is general information, not legal advice; confirm the rules for your state with your payment processor or an attorney.

• Credit cards only. Card network rules prohibit surcharging debit and prepaid cards in every state, even when a debit card is run as credit.
• Stay under the cap. A surcharge can't exceed what the card actually costs you to accept, and Visa caps surcharges at 3%. Since most clubs accept Visa, 3% is the practical ceiling.
• Check your state. Connecticut and Massachusetts ban credit card surcharges, and so does Puerto Rico. Some states set lower caps, such as Colorado's 2%, or add their own disclosure rules. Published guides disagree about the status of a few states, so check before you start.
• Tell your processor in advance. Card networks require advance notice before you start surcharging, and your processor usually handles it.
• Disclose it before payment. Families must see the fee before they pay, and it should appear as its own line on the receipt.
• The label doesn't change the rules. Card networks look at how a fee works, not what it's called. A percentage added to card payments is treated as a surcharge, even if you call it a convenience or processing fee.

If you pass fees on, offer a way to pay without the fee, such as ACH, and apply the policy the same way to every family.

For writing a refund policy and handling disputed charges, see refund or chargeback.

6. Encourage ACH for larger payments

Bank transfers usually cost the club much less than cards, which makes them worth encouraging for deposits and full-season payments.

Know the trade-offs before you push them:

• ACH payments take a few business days to arrive, rather than landing instantly.
• A payment can be returned, for example if the family's account doesn't have enough money, so a "paid" payment isn't final until it clears.
• Families need to authorize the payment and enter their bank details once, which some find less convenient than a card.

A simple approach: offer both, make ACH the easy default for large payments, and let families use cards when they prefer.

7. Nonprofit status doesn't change the math

Running a club as a nonprofit changes how it's taxed and what it does with money left over. It doesn't change how payments work. A nonprofit club still pays processing fees, still follows the same card network rules if it surcharges, and still has to set prices that cover its costs.

Nonprofit doesn't mean the club runs on goodwill instead of operations. The same budgeting, the same pricing decisions, and the same systems apply. Some processors do offer reduced rates to registered 501(c)(3) organizations, so it's worth asking yours.

If you're setting up a nonprofit club, the youth sports nonprofit guide covers the steps.

Processing fees checklist

1. Accept that every payment method costs something, and plan for it.
2. Decide once whether the club will absorb processing fees or pass them on.
3. If you absorb them, add processing to the budget before you set the price.
4. Publish one all-in price with a list of what it includes.
5. If you pass fees on, surcharge credit cards only, never debit or prepaid cards.
6. Keep any surcharge at or below your actual cost and within your state's limits.
7. Check your state's surcharge rules and notify your processor before you start.
8. Show any fee before families pay, and list it separately on receipts.
9. Offer ACH, and encourage it for deposits and large payments.
10. Apply the same fee policy to every family, with no quiet exceptions.