Understanding Kickstarter Fees and Payment Processing
Last updated August 13, 2024
Kickstarter is a platform that facilitates the funding of creative projects, and like any platform, it has associated fees and payment processing procedures. Understanding these fees and how payments are handled is critical for both creators and backers. This guide will provide a clear explanation of Kickstarter's fee structure and payment processing methods.
Kickstarter's Fee Structure
- Platform Fee: Kickstarter charges a 5% platform fee on all successful projects. This fee is calculated on the total amount pledged to your project, excluding any processing fees.
- Payment Processing Fee: In addition to the platform fee, Kickstarter partners with Stripe to process payments, and Stripe charges a 3% + 30¢ fee on each pledge.
- Who Pays the Fees: The platform fee and payment processing fee are deducted from the total amount pledged by backers.
- Example: If you raise $10,000 on Kickstarter, the platform fee would be $500 (5% of $10,000). Stripe's payment processing fee would vary depending on the number and amount of pledges, but it's typically around 3% + 30¢ per pledge.
Payment Processing on Kickstarter
- Secure Payment Gateway: Kickstarter uses Stripe, a reputable and secure payment processing gateway.
- Payment Methods: Backers can pledge using major credit cards (Visa, Mastercard, American Express), debit cards, and Apple Pay.
- Payment Release: Funds are held in escrow until the end of your campaign. If you reach your funding goal, the funds are released to you within a few business days after the campaign closes.
- Refund Process: If a project fails to reach its funding goal, backers are automatically refunded. Backers can also request a refund if the project is canceled, or if they have experienced a change in circumstances.
- Disbursements to Creators: Kickstarter typically disburses funds to creators via bank transfer or through a payment service like PayPal.
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