If you recently purchased tickets from Ticketmaster and noticed a small $1 charge on your bank or credit card statement, you’re probably wondering what that fee is for. This additional $1 charge, sometimes called a “unit processing fee” or “order processing fee,” is Ticketmaster’s way of generating extra revenue from ticket sales.
What is the $1 Ticketmaster fee?
The $1 charge from Ticketmaster is an order processing fee that the company adds to ticket purchases made through their website or mobile app. It applies to all Ticketmaster tickets, regardless of the show, event, or venue. Some key things to know about this controversial fee:
- The $1 is charged per ticket, so if you buy 3 tickets in a single order you’ll see 3 separate $1 charges.
- It’s taken out as a separate line item in addition to the advertised ticket price.
- Ticketmaster keeps the $1 fee as revenue; it does not get passed along to venues, teams, or event organizers.
- The fee shows up on your bank or credit card statement under a description like “Ticketmaster Order Processing Fee.”
Why does Ticketmaster charge this fee?
Ticketmaster defends the $1 order processing fee as a way to cover their costs and make profit as a ticket retailer. However, many critics argue it’s an unnecessary nuisance fee that only serves to squeeze more money out of customers. Here are some of the main reasons behind Ticketmaster’s $1 fee strategy:
Offset credit card processing costs
Processing credit and debit card transactions comes with costs for merchant service fees paid to card issuers. The $1 fee helps Ticketmaster recoup some of these expenses.
Profit through nickel-and-diming
Those little $1 charges add up quickly when Ticketmaster sells millions of tickets. The company generates significant extra revenue by counting on most customers to ignore small ancillary fees.
Bundle costs into a separate fee
Rather than raise ticket prices across the board, the $1 fee allows Ticketmaster to covertly bundle costs and make additional profit without consumers perceiving an increase in base ticket prices.
Discourage ticket resales
Ticketmaster claims the order processing fee makes it less profitable for third-party ticket brokers to scoop up tickets for resale. In theory, this helps get more tickets directly into the hands of fans.
Does Ticketmaster charge other fees?
Yes, the $1 order processing fee is just one of many additional fees and charges Ticketmaster routinely adds onto ticket purchases. Some other common Ticketmaster fees include:
Fee Name | What It’s For | Fee Amount |
---|---|---|
Delivery fee | Fee for Ticketmaster to deliver tickets by mail | $5.50 – $23.50+ per order |
Facility charge | Fee that goes back to the venue hosting the event | Varies by event |
Service fee | Ticketing service charges added per ticket | $13.75+ per ticket |
As you can see, the $1 unit processing fee is just the tip of the iceberg when it comes to all the extra charges Ticketmaster implements. Online ticket fees now add 25% or more to a ticket’s face value on average.
Are Ticketmaster’s fees refundable?
Typically no – Ticketmaster’s processing fees, delivery fees, and service charges are final sales and not refunded even if you end up returning the ticket. The only exception is if a show is canceled or rescheduled; in those cases only the base price of the ticket is refunded. The fees are usually non-refundable.
If you want to return or sell a ticket, you’ll have to eat the cost of all the fees you paid upfront. This further motivates Ticketmaster to pack on the fees since they get to keep that revenue regardless.
Can you avoid Ticketmaster fees?
Since Ticketmaster has exclusive ticket sales rights with many major venues and events, it can be difficult to avoid their fees completely. But here are some tips to minimize fees when buying tickets:
- Buy direct from the venue box office if available – avoids most online fees
- Use fan ticket exchanges or resale sites – fees are sometimes lower
- Buy group tickets – fees are cheaper when split across more tickets
- Use Ticketmaster gift cards – can sometimes deduct fees from card balance
- Buy season ticket packages – per ticket fees are reduced with subscription plans
While inconvenient, the $1 Ticketmaster order processing fee has become an accepted norm in the age of online event ticketing. As a ticket buyer, the best way to deal with it is to factor those extra nuisance fees in as an expected cost of attending your favorite events and concerts.
Conclusion
The mysterious $1 charge from Ticketmaster that appears during the ticket buying process is a unit processing fee that the company adds to each ticket transaction. While only $1 per ticket, this controversial fee allows Ticketmaster to generate substantial revenue through nickel-and-diming customers with incremental fees. Along with other fees like service charges and delivery fees, the $1 processing charge has become an established part of the Ticketmaster business model. Although customers may be stuck paying the extra fees for prized event tickets, being aware of why these fees exist can help explain that surprise $1 charge on your bank statement following your next ticket purchase.