If you recently purchased tickets through Ticketmaster and noticed an extra $1 charge on your bill, you’re not alone. This controversial “order processing fee” has sparked consumer complaints and raised questions about Ticketmaster’s business practices.
What is the $1 order processing fee?
The $1 order processing fee is an additional charge that Ticketmaster applies to ticket orders. It was introduced in 2010 as an “unavoidable cost of doing business” to offset the rising costs of credit card processing and technology improvements.
According to Ticketmaster, the $1 fee helps cover expenses related to:
- Credit card processing fees
- Staffing costs for customer service
- Website development and maintenance
- Technology investments
The fee applies to every ticket purchase, regardless of quantity. For example, whether you buy 1 ticket or 10 tickets, you’ll be charged a flat $1 fee.
Why are customers upset about the $1 fee?
The $1 order processing fee has been widely criticized by consumers for several reasons:
It’s unavoidable
There’s no way for customers to opt-out of the $1 fee when purchasing through Ticketmaster. It applies to all ticket orders automatically.
It’s non-transparent
Many customers feel the fee is deceptive since it’s added at the very end of the purchase after selecting tickets. Some argue it should be disclosed earlier in the ordering process.
It adds up quickly
While $1 seems trivial on its own, it adds up fast, especially for large group purchases. Customers buying 10+ tickets object to paying $10 or more in just order processing fees.
Service fees already exist
Ticketmaster’s service fees are supposed to cover processing costs. Yet they’re now tacking on an additional $1 fee too. Customers feel they’re being double charged.
It contributes to ticket inflation
Between the $1 order fee, service fees, and other charges, some feel Ticketmaster is contributing to increasingly unaffordable ticket prices that go beyond artists’ base ticket rate.
Does the $1 fee actually offset Ticketmaster’s costs?
Ticketmaster claims the $1 helps cover its rising overhead expenses. But some financial analysts are skeptical about whether the fee truly offsets Ticketmaster’s operating costs or if it simply boosts profits.
Here are some key considerations:
- Ticketmaster pays credit card processing fees on each transaction. But at roughly 2-3% per transaction, a $1 fee would significantly overcompensate for these costs.
- While website maintenance and technology investments are ongoing costs, Ticketmaster likely recoups much of these expenses through their much higher service fees.
- The $1 fee is applied evenly across all ticket prices, from $10 to $10,000. There is no correlation between event size/scope and the order fee amount.
Additionally, Ticketmaster is a wholly owned subsidiary of Live Nation Entertainment. Live Nation actually [reported $1.5 billion in profits](https://www.billboard.com/pro/live-nation-reports-2021-financial-results-15-billion-concert-revenue/) in 2021, suggesting they have plenty of capital to reinvest without needing to charge a $1 order processing fee.
Is Ticketmaster monopolizing the ticket industry?
Some consumers suspect the unpopular $1 fee is a result of Ticketmaster having an effective monopoly in event ticketing. Ticketmaster sells tickets for the vast majority of major concerts, shows, and sporting events.
With limited competition, Ticketmaster has the freedom to tack on incremental fees that customers have little choice but to pay if they want to attend popular events. There are very few alternative places customers can purchase primary market tickets for major events.
Ticketmaster and Live Nation actually attempted to merge in 2009 but were blocked on antitrust grounds to prevent monopolistic pricing control. However, the two companies were still allowed to enter into various business agreements and [Live Nation eventually acquired Ticketmaster in 2010](https://www.cnbc.com/2018/04/28/the-day-ticketmaster-and-livenation-merged.html).
Critics argue this has still led to Ticketmaster dominating the primary ticketing market and exploiting consumers with fees like the controversial $1 order processing charge.
Is Ticketmaster running a bait-and-switch scam?
Some angry customers have accused Ticketmaster of running a “bait-and-switch” scheme with the $1 order processing fee. Here’s why:
When selecting event tickets, the advertised ticket prices are shown exclusive of fees. Only at checkout is the $1 fee added on after ticket selection. If customers abandon their cart, Ticketmaster loses the $1 fee.
This had led to accusations that Ticketmaster is showing artificially low ticket prices upfront to attract customers. Then they add on the various fees to inflate the actual order total.
Ticketmaster’s response
Ticketmaster maintains the $1 fee helps support continued investments in their platform that improve the ticket buying experience. They say the order processing fee allows them to show the base ticket prices upfront without building fees into the initial ticket pricing.
They also argue they are upfront about service fees being additional costs and have made efforts to disclose when fees will apply. However, many still feel the $1 fee is not adequately disclosed until after ticket selection.
Lawsuits against Ticketmaster’s order processing fees
The controversial order processing fee has sparked several lawsuits over the years:
The Curt Schlesinger lawsuit
In 2011, Curt Schlesinger brought a class action lawsuit against Ticketmaster arguing the order processing fee violated consumer contracts and constituted unfair competition. Ultimately, the court ruled in Ticketmaster’s favor that the fee did not breach any consumer contracts.
The Brady lawsuit
In 2019, concertgoer Justin Brady sued Ticketmaster after being charged a $5 order processing fee on a $40 concert ticket. The lawsuit similarly alleged breach of contract and deceptive practices. Ticketmaster successfully had the lawsuit dismissed through arbitration agreements.
The Hamilton lawsuit
In 2022, dance studio owner Valerie Hamilton filed a lawsuit in New York district court claiming Ticketmaster and Live Nation engaged in price fixing and hidden fees. The suit is specifically focused on the fees from Ticketmaster’s Professional Services division for larger scale ticket sales. The case is still pending.
While customers have been angered by the $1 order processing fee for years, lawsuits have largely been unsuccessful at removing or reducing it due to Ticketmaster’s terms of use agreements.
Strategies for avoiding Ticketmaster fees
While all Ticketmaster orders incur the $1 processing fee, here are some strategies customers can use to minimize fees when purchasing tickets:
Buy directly through the venue box office
If a venue sells tickets directly through their box office, either online or in-person, you can avoid Ticketmaster’s fees altogether. However, box office availability for major concerts is often limited.
Use a Ticketmaster coupon code
Ticketmaster periodically offers discount codes that waive service fees on orders. This does not waive the $1 order processing fee, but can offer substantial savings on larger orders.
Buy season ticket packages
If you plan to attend multiple events at a single venue, buying a season ticket package can minimize fees compared to buying individual tickets. The $1 processing fee would apply once to the package instead of each ticket.
Purchase resale tickets
Buying tickets resale on sites like StubHub avoids Ticketmaster fees, though seller fees may apply. Just be cautious of counterfeit tickets when using unofficial resale sites.
Is the $1 order processing fee here to stay?
Despite ongoing customer complaints, the frustrating $1 Ticketmaster fee doesn’t appear to be going away anytime soon. As an unavoidable cost applied to every order, it’s become a significant revenue source for the company.
While consumers have tried rallying against the fee through lawsuits and petitions, Ticketmaster maintains the fee is necessary to improve their services and has generally prevailed in legal disputes over it.
Unless lawmakers or regulators step in, Ticketmaster has little incentive to remove a fee that likely nets them tens of millions in revenue or more each year.
Though if customer dissatisfaction reached extreme levels, Ticketmaster could theoretically roll the fee into their base ticket prices as a show of goodwill. But for now, the $1 order processing fee remains an unpleasant reality for Ticketmaster customers.
Key Takeaways
- Ticketmaster’s $1 order processing fee covers credit card fees, staffing, and tech investments. But many feel it’s excessive.
- Customers are upset the unavoidable fee inflates costs and is only disclosed at checkout.
- Lawsuits claiming the fee is a deceptive breach of contract have largely failed.
- Strategies like buying directly through venues or using coupons can help minimize fees.
- The $1 fee generates significant revenue for Ticketmaster and is unlikely to be dropped unless forced.
The $1 order processing fee remains a controversial Ticketmaster policy. While the company defends it as necessary overhead, many see it as an opaque attempt to squeeze out more profit from customers. Unfortunately, fans have limited options beyond trying to minimize its impact when purchasing tickets.
Conclusion
Ticketmaster’s $1 order processing fee is a frustration familiar to anyone who has bought tickets through the ticketing giant. While Ticketmaster defends the charge as essential for supporting its services, many customers feel shortchanged by fees atop fees that quickly multiply costs.
Lawsuits claiming the fee is a deceptive and monopolistic practice have largely floundered. And with Ticketmaster’s dominance of primary event ticketing, consumers have limited alternative options. While steps like buying directly through venues, using promo codes, and purchasing resale can help mitigate fees, the order processing charge persists.
In the live entertainment ecosystem, Ticketmaster sits in an entrenched position between venues, artists, and fans. This gives them substantial leeway to tack on incremental fees like order processing that boost their bottom line. Many hope increased competition could provide more consumer-friendly alternatives.
But for now, the controversial yet lucrative $1 charge remains an inevitable nuisance for Ticketmaster customers. Understanding exactly what the order processing fee is, why Ticketmaster charges it, and how to minimize its impact can at least help consumers make more informed ticket purchases.