Your GotPhoto Fees (US Customers)

Overview

This article explains how your fees are calculated and billed on your GotPhoto invoice. GotPhoto applies different rounding rules for billable order fees and the amount charged when an order is placed. Photographer Fee Payment

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Fee Overview 

There are 3 types of fees that can be charged by GotPhoto:

1. Standard Fees

GotPhoto charges you:

• A monthly subscription fee (not applicable for Enterprise customers). Here you can also switch to an annual subscription. The annual fee will be charged upfront, with your first invoice that follows the switch. In both cases, we will charge the credit card that you saved in your GotPhoto account. 
• A service fee is applied per order on gross revenue.
• Payment fees:
  • A payment service fee of $0.30 per order. 
  • A volume-based fee per transaction: 2.9% per order. 
• Editing Fees (If applicable)
  

2. Sales Tax

GotPhoto is a Marketplace Facilitator. Therefore, we will collect the sales tax from your customers' payments. On the order page, we use the term "Photographer Fee Payment" to refer to the total amount deducted from your customer's order payments. This total includes the service fee, payment fee, and, if applicable, the sales tax.

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3. Other Charges: 

• If you use our basic editing or background removal services, we will charge this fee within the following invoice.
• We apply a service fee per order if you create manual direct or batch orders on the order entry page. The amount is dependent on your plan.  

You may notice a negative balance in your account throughout the month. The amount is dependent on the volume of orders you handle.

The reason for this is due to how GotPhoto calculates fees. There are two types of fees:

1. Service Fee: % of gross revenue
2. Payment Fee: 2.9% per payment + $0.30

For both fee types, our accounting uses four decimal places, while the charges we apply have only two decimal places. This difference in precision can cause a balance discrepancy. Please note that this rounding practice also applies to fees for orders that are placed manually via Order Entry. 

Due to volume, we have higher precision when we sum up all fees for an entire month. This results in a difference between the total amount of fees and the total amount of charges. In some months, this difference may result in a positive balance, while other months may result in a small negative balance.

A negative balance can also be a result of a Prepay order. When a transaction is processed, GotPhoto charges all applicable fees and taxes. Your fees are billed immediately, but your sales tax is billed when your Prepay orders have been processed. This means that unlike your fees, your sales tax will end up as a credit in your GotPhoto balance and look like available funds that can be withdrawn in a payout. If you choose to request a payout at this time, your balance will run negative in the next billing cycle due to the sales tax being billed. 

Using billable items with four decimals ensures fairness, especially for photographers with a high volume of small orders. Rounding up even one cent for each order could lead to a different total service fee at the end of the month. This is why we have chosen to apply rounding rules in this way.

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The Takeaway

GotPhoto applies specific rounding rules for invoice items, order fees, and charges deducted from customer payments. This discrepancy can result in balance variations. These differences are automatically reconciled, ensuring fairness for all users. GotPhoto's commitment to accuracy and fairness underlines our decision to maintain four-decimal precision for order fees.