Quick Answer: What Is the 3.5% Transaction Fee?
The 3.5% transaction fee is charged on each successful payment from your members.
Rate: 3.5% of each transaction
Applied to: Every successful member payment
Charged by: LaunchPass
When: Automatically deducted from each payment
Cap: Will never exceed 3.5% (guaranteed)
Separate from: Stripe processing fees and $29/month subscription
How the Transaction Fee Works
When It's Charged
Every successful payment triggers the 3.5% fee:
✓ Monthly subscription charges
✓ Weekly subscription charges
✓ Quarterly subscription charges
✓ Annual subscription charges
✓ One-time payments
✓ Upgrade charges
✓ Additional purchases
When it's NOT charged:
✗ Failed payments (no transaction occurred)
✗ Cancelled subscriptions before payment
✗ Free members (no payment = no fee)
Please note: Refunding a payment in Stripe or in the LaunchPass dashboard does not refund the fees Stripe or LaunchPass takes.
Automatic Deduction
The fee is deducted automatically:
Member makes payment → Stripe processes it
Payment succeeds → Funds go to your Stripe account
LaunchPass fee (3.5%) deducted automatically
Stripe fee (2.9% + $0.30) deducted by Stripe
Remaining balance available for payout to your bank
You don't manually pay this fee—it's seamlessly handled in the background.
Calculation Examples
Let's break down exactly what you pay and keep from different payment amounts.
Example 1: $20 Monthly Payment
Member pays: $20.00 LaunchPass fee (3.5%): -$0.70 Stripe fee (2.9% + $0.30): -$0.88 ────────────────────────────── You receive: $18.42 (92.1%)
Example 2: $50 Monthly Payment
Member pays: $50.00 LaunchPass fee (3.5%): -$1.75 Stripe fee (2.9% + $0.30): -$1.75 ────────────────────────────── You receive: $46.50 (93.0%)
Example 3: $100 Monthly Payment
Member pays: $100.00 LaunchPass fee (3.5%): -$3.50 Stripe fee (2.9% + $0.30): -$3.20 ────────────────────────────── You receive: $93.30 (93.3%)
Example 4: $500 Annual Payment
Member pays: $500.00 LaunchPass fee (3.5%): -$17.50 Stripe fee (2.9% + $0.30): -$14.80 ────────────────────────────── You receive: $467.70 (93.5%)
Fee Percentage by Price Point
How much of revenue goes to fees:
Member Price | LaunchPass Fee | Stripe Fee | Total Fees | You Keep |
$10/month | $0.35 (3.5%) | $0.59 (5.9%) | 8.94% | 91.06% |
$25/month | $0.88 (3.5%) | $1.03 (4.1%) | 7.64% | 92.36% |
$50/month | $1.75 (3.5%) | $1.75 (3.5%) | 7.00% | 93.00% |
$100/month | $3.50 (3.5%) | $3.20 (3.2%) | 6.70% | 93.30% |
$200/month | $7.00 (3.5%) | $6.10 (3.1%) | 6.55% | 93.45% |
Insight: Higher prices mean lower relative fee percentages due to Stripe's flat $0.30 component.
Why LaunchPass Charges This Fee
What the 3.5% Covers
Platform costs and services:
Payment processing integration and automation
Member management system
Automation of Stripe's features, including billing, cancelation, etc so you don't have to think about it
Infrastructure and server costs
Security and compliance
Platform development and updates
24/7 support for you and your members
Technical maintenance
Feature development
Quality assurance
Performance-Based Model
You only pay when you earn:
No payment = no transaction fee
Failed transaction = no fee charged
More revenue = more we earn (aligned incentives)
Your success = our success
This model ensures LaunchPass is invested in your community's growth—we succeed when you succeed.
LaunchPass vs. Stripe: Understanding Both Fees
Many people confuse LaunchPass fees with Stripe fees. Here's the difference:
LaunchPass Transaction Fee: 3.5%
What it is:
Platform fee for using LaunchPass
Covers community management features
Automated member access control
Support and infrastructure
Charged by: LaunchPass
Deducted: Automatically from Stripe payouts
Stripe Processing Fee: 2.9% + $0.30
What it is:
Payment processing fee
Credit card transaction handling
Fraud prevention
PCI compliance
Charged by: Stripe (separate company)
Deducted: Automatically from each transaction
Combined Impact
Total platform fees: ~6.5-7% of each transaction
Breakdown for $50 payment:
Member pays: $50.00 Combined fees: -$3.50 (7.0%)
You receive: $46.50 (93.0%)
This is separate from the $29/month LaunchPass subscription.
Transaction Fee FAQs
Will LaunchPass ever charge more than 3.5%?
No. This is guaranteed.
LaunchPass commits to never charging more than 3.5% as a transaction fee. This rate is your maximum—you'll never see it increase without your agreement.
Are there any additional transaction fees?
From LaunchPass: No, only the 3.5%.
From Stripe: Yes, Stripe charges separately (2.9% + $0.30). These are Stripe's fees, not LaunchPass fees.
What about international payments?
LaunchPass fee: Still 3.5% (same rate globally)
Stripe fees for international cards:
Additional 1.5% for international cards
Additional 1% for currency conversion
Check Stripe pricing for details
Do I pay the fee on refunds?
Yes. When you refund a member:
LaunchPass handles the automation for the subscription, whether you kick them or refund a single month's payment.
Stripe processing fee is NOT refunded (Stripe keeps it)
Is the fee charged on free trials?
No. Free trials don't involve payment, so:
No transaction during trial = no fee
Fee only applies when payment is charged (after trial)
How is the fee calculated for annual subscriptions?
Same 3.5% rate applies:
Member pays $500/year:
LaunchPass fee: $500 × 3.5% = $17.50
One transaction per year
Lower relative fee than 12 monthly payments
Annual benefit: Fewer transactions = fewer $0.30 Stripe fees.
Can I pass the fee on to members?
Technically yes, but not recommended:
You set your own prices
You could inflate pricing to cover fees
However, this makes you less competitive
Better: Price based on value, absorb fees
When is the fee deducted?
Immediately upon successful payment:
Member pays → Stripe processes
Both Stripe and LaunchPass fees deducted
Net amount available in Stripe balance
You receive payout per your Stripe schedule (2-7 days)
Where can I see the fees charged?
Stripe Dashboard:
Log into Stripe
View → Payments
See gross amount, fees, net amount
Detailed breakdown per transaction
LaunchPass Dashboard:
Activity feed shows transactions
For fee details, check Stripe
Do fees apply to coupons/discounts?
Yes, on the discounted amount:
Member pays $50, 20% coupon = $40 actual charge:
LaunchPass fee: $40 × 3.5% = $1.40
Fee calculated on actual amount charged
Not on original pre-discount price
Is the 3.5% fee negotiable?
For most communities: No, 3.5% is the standard rate.
For Ultra plan members (1,000+ members, $50K+ revenue): Yes, there are occasions where LaunchPass may be willing to negotiate our 3.5% fee.
Optimizing Your Revenue Despite Fees
Strategy 1: Price Appropriately
Don't underprice to compete on cost:
Price based on value, not fees
Members pay for outcomes, not channel access
Higher prices = lower relative fee %
Example: $100/month = 6.7% total fees vs. $20/month = 8.9%
Strategy 2: Offer Annual Plans
Benefits of annual pricing:
Collect 12 months upfront (better cash flow)
Only one transaction = only one set of fees
Save on Stripe's $0.30 × 12 = $3.60
Lower churn (annual commitment)
Calculation:
Monthly: $50 × 12 = $600 Fees: 12 transactions × ($1.75 LP + $1.75 Stripe) = $42 Annual: $600 × 1 = $600 Fees: 1 transaction × ($21 LP + $17.70 Stripe) = $38.70 Savings: $3.30/year per member
Plus you could offer 15-20% annual discount and still come out ahead!
Strategy 3: Minimize Refunds
Every refund means:
Lost revenue
LaunchPass & Stripe fees not refunded (you eat that cost)
Time spent processing
Reduce refunds by:
Clear value proposition before signup
Excellent onboarding
Over-delivering immediately
Active engagement
Responsive support
Strategy 4: Scale to Enterprise
At scale, fees become negotiable:
Grow to 1,000+ members
Demonstrate consistent revenue
Qualify for reduced rates
Significantly lower costs at scale
The Bottom Line: Fair, Competitive Pricing
What You Get for 3.5%
Platform services:
Automated member management
Payment processing integration
Failed payment handling
Subscription management
Access control
24/7 support
Platform updates
Security & compliance
Value proposition:
Building this yourself: $50K-150K+ development
Monthly maintenance: $2K-5K+
LaunchPass: $29/month + 3.5%
Real-World Impact
100 members at $50/month:
Monthly revenue: $5,000
LaunchPass fees:-$204 (4.1% including $29)
Stripe fees:-$175 Net
income: $4,621 (92.4%)
You keep over 92% of revenue. That's highly competitive in the industry.
Is It Worth It?
Consider the alternative:
Build custom solution: $50K-150K upfront
Maintain yourself: $2K-5K/month ongoing
Handle support: All on you
Time to launch: 6-12 months
Or choose LaunchPass:
$29/month + 3.5% per transaction
Launch in minutes
24/7 support included
Focus on community, not technology
For most communities, the answer is clear: LaunchPass's 3.5% transaction fee is more than worth it.
Related Resources
Pricing Information:
Getting Started:
Support:
Email: [email protected]
Book consultation: launchpass.com
Help center: help.launchpass.com
Summary
The LaunchPass 3.5% transaction fee:
✓ Charged on each successful member payment
✓ Covers platform, automation, and support
✓ Separate from Stripe fees and monthly subscription
✓ Never exceeds 3.5% (guaranteed)
✓ Competitive with industry alternatives
✓ Performance-based (you only pay when you earn)
✓ Negotiable for enterprise-scale communities
Combined with the $29/month subscription, LaunchPass provides exceptional value:
Complete automation
Multi-platform support
24/7 customer support
All features included
Launch in minutes
Ready to start? Try LaunchPass free for 14 days →
Questions about the transaction fee? Email [email protected] or book a free consultation to discuss your specific situation.