Application fee

An application fee is the amount a booking platform keeps from a payment it processes on a shop's behalf. It is charged on top of, or instead of, a subscription, and is taken automatically as each payment settles.

Also called: platform fee, software commission

Application fees are where the real cost of 'free' booking software usually sits. Free software funded by a percentage of every transaction costs a busy shop far more than a flat monthly plan, and the cost rises exactly as business improves.

Comparing offers means working out both models against real volume. Take last month's card takings, apply the percentage, and set that against a subscription price.

Booked charges a flat rate per successful charge and nothing else on top, and card payments can be switched off entirely.