Why a card payment is never free

When a contributor puts £20 on an online kitty by card, the money goes through a payment provider. That provider charges a fee on every transaction: it is how the business works, and that is normal.

A platform advertising "0% fees" therefore has to cover that cost one way or another. It is not necessarily hidden or dishonest: the point is to know who pays, when, and whether it is clearly stated. That is what is worth checking before you choose.

Five places where the cost often sits

Depending on the platform, the payment cost usually ends up in one of these places, sometimes several. None of them is forbidden; what matters is spotting it.

• A contribution or "tip" suggested at checkout: when paying, the contributor sees an extra amount suggested to support the platform, sometimes pre-filled or pre-selected. It can often be changed or removed, provided you notice it.
• Fees charged to contributors: the kitty is free for the organiser, but each contributor pays a small fee on top of their share.
• Fees to withdraw the money: getting the total into a bank account may cost something, or be free only if you spend it as a gift card at partner brands.
• Free, with conditions: no fees below a certain amount, for a limited time, or only for some payment methods.
• A less visible cost: an unfavourable exchange rate for contributors abroad, or a delay before the money is available.

How to check before you create a kitty

A few minutes are enough to know what to expect. The simplest way is to put yourself in a contributor's shoes, then in the organiser's when it is time to collect the money.

• Simulate a contribution all the way through: go to the payment screen and read the final amount, line by line.
• Look for pre-ticked boxes and suggested amounts: can you set them to zero easily?
• Read the pricing page and the terms and conditions, especially the parts on fees and withdrawals.
• Check the withdrawal conditions: to a bank account, how long it takes, with or without fees, and what changes with a gift card.
• Look at what the contributor pays, not just the organiser: that is often where the difference lies.

Filomy's approach: the money does not go through us

Filomy's kitty and donation pledges work differently: Filomy does not handle the money. Each contributor pledges an amount, then pays the organiser directly, by bank transfer (the IBAN is shown), through a Wero or Lydia link, by cheque or with cash handed over.

The organiser ticks off payments received, sees pledged and paid totals in real time, and can add donations received directly. If another online kitty already exists, its link can sit alongside the pledges.

Since no card payment goes through Filomy, there is no provider fee to pass on: the kitty is free, with 0% commission and no limit.

• Donation pledges with real-time pledged / paid tracking
• Direct payment to the organiser: bank transfer, Wero, Lydia, cheque or cash
• Donations received directly can be added by hand
• A link to another online kitty can coexist

The trade-offs, openly

This model has limits, and it is better to know them. There is no card payment inside Filomy: if your contributors really want to pay by card, it is not the right tool, or keep another kitty's link alongside.

The organiser confirms payments by hand: when a transfer arrives, you tick it off. Finally, each payment method keeps its own conditions, set by the bank or the app used; Filomy takes nothing on top.

What if the kitty carried the messages too?

For a group gift, the money is often only part of the gesture. The Filomy kitty can be attached to a personalised gift voucher page or a guest book, so the gift itself carries everyone's words.

We explore this idea in the article on group gifts that are more than a kitty, linked below.