Why your ticketing company is holding your money, and what you can do about it

If you're an event organiser, you've probably run into the range of pricing models used by ticketing platforms. Each one has its own way of making money, so comparing them side by side can be hard. Here are the things you actually need to look out for.

• How long do they hold your money for?
• Who is the merchant of record?
• How much are they charging you per ticket?
• What fee types do they have?

How long do they hold your money for?#

This varies a lot between ticketing companies, and they set the rules for how long your money is held and when you get paid. Some platforms will sit on your money until after the event has finished, so they can guarantee they're able to issue refunds.

Here's the thing: that only happens when the ticketing platform is the merchant of record. When they control the money, they control the payout schedule, and you're left waiting.

That matters more than it sounds, because the big costs of running an event don't wait. Venue deposits, timing, insurance, medals, marshals. Most of it is due well before race day, not after. If your ticket revenue is locked up in a platform's account until the event is over, you're covering those costs out of your own pocket in the meantime.

When you're the merchant of record, the money is yours as it settles, on your payment processor's normal payout schedule, instead of being held hostage until after your event. That gives you real control over your own cash flow.

4TY2 makes you, the event organiser, the merchant of record by default. Your ticket revenue lands in your account as it settles, not weeks later once your event is done.

Who is the merchant of record?#

This is one of the most important questions to ask before signing up to any platform.

The merchant of record is the entity responsible for processing customer payments, and they're the ones responsible for things like chargebacks and refunds. They also control the money and get paid first.

As an event organiser, you want to be the merchant of record. That's what lets you receive your ticket sales directly rather than waiting on someone else's payout schedule. The catch is that being the merchant of record also means owning the responsibilities: the refunds, the transfers, the chargeback disputes. A good ticketing platform lets you be the merchant of record while supporting you with those responsibilities, so you get the upside without carrying the admin burden alone.

4TY2 makes you, the event organiser, the merchant of record by default, and then handles the parts that usually make it scary. Automatic refunds, free ticket transfers, and ready-made documentation to fight chargeback disputes. You get the upside of being merchant of record (your money, your customer relationship, your cash flow) without doing the hard parts on your own.

How much are they charging per ticket?#

Fee structures vary across platforms, but what you're really after is a low platform fee, one that doesn't take a huge bite out of your per-ticket income.

The platform fee usually has two components:

• A flat % fee
• A flat $ amount

Some larger platforms add more on top, but this is the common structure. As a rule of thumb: if your ticket prices are low (say $5 to $20), a low flat $ amount matters most, because that's often the biggest part of the fee. If your ticket prices are higher (say $100 to $200+), you want a low flat % fee, and ideally a cap. Capping the total platform fee is essential for higher-priced events, so the fee stays within a reasonable range instead of climbing with your ticket price.

4TY2 keeps both the flat % fee and the flat $ amount well below the industry standard, at 2.5% + $0.50 AUD, with a $4 cap. Your platform fee stays low and predictable no matter your ticket price, and with the cap, higher-priced tickets never get eaten alive by percentage fees.

What fee types do they have?#

Most platforms charge a platform fee (above) plus a processing fee. The processing fee covers the cost of moving money around; the platform fee is the cost of using the platform itself.

Using a local platform instead of a global one usually means lower processing fees, because domestic cards cost less to process than international ones.

4TY2 estimates processing fees at a domestic card rate (1.7% + A$0.30), which is the most common card type, since we only operate in Australia. We don't blanket-charge you the higher international rate on every transaction. We only charge the international rate when an international card is actually used at checkout. Other platforms often charge the higher rate on every sale, regardless of the card used.

Summary#

The ticketing platform you choose is a big decision, and it shouldn't be taken lightly. Make sure you understand how long they can hold your money, who the merchant of record is, how much they charge per ticket, and what fee types they apply.

Look for companies with low, transparent fees, that let you be the merchant of record, and that don't sit on your money until after your event. That's how you protect the revenue your event generates, and keep control of it.