# Why are my bank statements a penny off?

From time to time, you may notice that your bank statement is off by a penny in comparison to what you see in your Control Center. **This is because all donations given via credit cards are charged a percentage transaction fee of 1.9%**.

Here's an example, using two separate donations of $40 and $60, both given via credit card.

Every gift donated through a GivingFlow goes through the calculation of ** x / (1 - 0.019)**, where

**. The result is the total amount the donor pays to account for the transaction fee.**

*x*= gift amountFor these two individual gifts, the calculations are as follows:

**DONOR 1:** $40 / (1 - 0.019) = $40.774719674

**DONOR 2:** $60 / (1 - 0.019) = $61.162079511

We cannot deposit partial pennies, however, so these amounts are rounded to the nearest whole penny. Thus, the following is how much each donor gives:

**DONOR 1:** $40.774719674 ≈ $40.77

**DONOR 2: **$61.162079511 ≈ $61.16

The idea is that when you multiply the total amount by 1.9% and then remove that small amount, you're left with the full amount the giver wanted to give.

**DONOR 1:** $40.77 * 0.019 = $0.77463 ≈ $0.77

**DONOR 2:** $61.16 * 0.019 = $1.16204 ≈ $1.16

**DONOR 1:** $40.77 - $0.77 = $40

**DONOR 2:** $61.16 - $1.16 = $60

Let's say, in this example, these two donations are the only two gifts given in a 24 period, meaning they are the only two transactions in the next batch deposit. Let's add the total of the two gifts with and without the transaction fees:

**WITH FEES: **$40.77 + $61.16 = $101.93

**WITHOUT FEES: **$40 + $60 = $100

Since the total of each donor's gift is $100, intuitively it makes sense that the transaction fee given to the card processor is $1.93. (See calculation below.)

**TRANSACTION FEE (INTUITIVELY): **$101.93 - $100 = $1.93

This is the point where the discrepancy occurs. Each batch is deposited *after *the percentage fee is taken off the total batch amount. (Card processors do not send each transaction out to the credit card companies as they happen; they batch them daily.)

**TRANSACTION FEE (ACTUALITY): **$101.93 * 0.019 = $1.93667 ≈ $1.94

Just like how each individual gift is rounded to the nearest penny, so is the total transaction fee of each batch deposit. **In this case, it happens to be rounded up, leaving with a penny difference** between what one would expect versus what actually occurs, due to credit card transaction fees being a percentage rather than a set flat rate.

**PENNY DISCREPANCY:** $1.94 - $1.93 = $0.01

If only one credit card donation is made in a 24-hour period, there is no room for this discrepancy; however, **as soon as there are multiple donations made**, there is no way to answer the question, **"Which donor do you choose to have a penny removed from their gift **to account for the difference?"

In this example, there is a penny less than what adds up to the total amount of gifts deposited in that single batch; **however, there may be other times where there will be a penny more.** It all depends on whether the percentage transaction fee requires the card processor to** round up or down** by one penny.