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Payment processing fees

Posted: Thu Feb 13, 2025 10:43 am
by sumonasumonakha.t
If the project reaches its funding goal before the deadline, it is considered successful and the funds are collected via the backers’ credit cards. If the project does not reach its funding goal, no funds are raised and the project does not continue. Once the funds are raised, the creator completes the project and delivers the rewards to the backers within the agreed timeline. Kickstarter charges a 5% fee on the funds raised, in addition to additional fees charged by payment processors. Any type of project can be backed on Kickstarter, from films, music albums, art installations, games, and inventions.

How Kickstarter Makes Money
Kickstarter has become a source for thousands of innovative ideas, funding everything from dentist data movies and music albums to new products and technologies. But many people don’t know how Kickstarter makes money. Here’s how the company generates revenue:

Financing costs
The primary way Kickstarter makes money is through funding fees. When a project is successfully funded, Kickstarter charges a 5% fee on the money raised. This is deducted from the project’s final funding total. For example, if a project raises $10,000, Kickstarter charges a $500 fee.


In addition to funding fees, Kickstarter also charges payment processing fees, which cover the cost of processing credit card payments and other financial transactions. Payment processing fees are typically around 3-5% of the total amount raised and are charged on top of funding fees. For example, if a project raises $10,000, the processing fee would be $300-$500. It is important to note, however, that Kickstarter only charges fees for successfully funded projects. No fees are charged if a project does not reach its funding goal. As such, project creators can use Kickstarter to raise money without incurring any upfront costs, only paying fees if their project is successful.