When you purchase tickets on Ticketmaster, you may notice a small $1 charge added to your order. This extra fee is known as the Ticketmaster Order Processing Fee. While only $1, this charge has become a source of frustration for many Ticketmaster customers who feel it’s an unnecessary extra cost.
What is the Ticketmaster Order Processing Fee?
The Ticketmaster Order Processing Fee is a $1 charge added to ticket orders purchased through Ticketmaster. It was introduced in 2010 to offset the costs of processing ticket orders and covering credit card fees. The $1 fee applies per ticket, so if you purchase 4 tickets in a single order you’ll pay $4 in processing fees.
Ticketmaster states that the Order Processing Fee helps them cover expenses like:
- Credit card processing fees
- Staffing for customer service
- Security measures against bots and scalpers
- Investments in new technology and services
Without the fee, Ticketmaster claims these costs would have to be passed on through higher ticket prices.
When is the Processing Fee Applied?
The $1 Ticketmaster Order Processing Fee is charged on all ticket orders purchased through Ticketmaster’s website or mobile apps. It applies to tickets for concerts, sports games, theater shows, and any other events sold on Ticketmaster.
The fee is charged per ticket, so if your order contains multiple tickets you’ll pay $1 for each one. It also applies to both primary market tickets sold directly by Ticketmaster, and resale/speculative tickets sold through Ticketmaster’s fan-to-fan exchange.
Why Do Customers Dislike the Processing Fee?
The $1 Order Processing Fee is unpopular among many Ticketmaster customers. Here are some of the common complaints about the fee:
It Seems Like a Money Grab
Many customers feel the Order Processing Fee is an unnecessary charge just designed to squeeze extra profit out of ticket buyers. They argue that a wealthy corporation like Ticketmaster should be able to cover routine costs of business without nickel-and-diming customers.
There Are Already Other Service Fees
In addition to the $1 Order Processing Fee, Ticketmaster also tacks on a variable “Service Fee” to tickets. This fee ranges from about 15-20% of the ticket price. Customers argue this substantial service fee should be enough to cover processing costs and expenses.
It’s Applied Per Ticket
The $1 fee being applied to each ticket, rather than per order, really adds up for large groups. For example, a 10-ticket order would carry $10 in Order Processing Fees. Many feel this is excessive, and that the fee should be applied once per order rather than multiplying with each ticket.
There is No Way to Avoid It
Unlike some other Ticketmaster fees, there is no way to avoid paying the $1 Order Processing Fee. It’s mandatory on all orders. So customers feel held hostage by the charge, since there is no ticket purchasing alternative if they want to avoid it.
It Prevents Ticket Prices from Being Transparent
Tacking on mandatory fees after the ticket price makes the full cost non-transparent. Customers must go through most of the purchase process before seeing the full amount owed. Many feel Ticketmaster does this intentionally to make initial ticket prices appear lower.
Does Ticketmaster Benefit from the Processing Fee?
While Ticketmaster states that the Order Processing Fee merely offsets their expenses, some analysts believe it also generates substantial profit for the company. Here are some of the ways Ticketmaster may benefit from the $1 fee, beyond just covering costs:
It Brings In Large Amounts of Revenue
Ticketmaster sells around 400 million tickets per year. That means if the $1 Order Processing Fee is applied to each ticket, it could generate around $400 million in annual revenue. While some of this covers expenses, it is likely more than what is required operationally.
It May Allow Lowering Service Fees
Some speculate that the extra revenue from the $1 Order Processing Fee allows Ticketmaster to charge slightly lower Service Fees. For example, instead of a 20% service fee they may be able to charge 17% and still maintain margins.
Customers Tolerate Small Fees More
Research shows that customers tend to tolerate small fees like $1 better than large percentage fees like 20%. So the $1 Order Processing Fee may be less likely to deter sales than higher variable fees.
It Discourages Ticket Resellers
For ticket brokers buying large quantities for resale, the $1 per ticket fee really adds up. This may discourage resellers just looking to profit from markups, reducing competition against Ticketmaster’s core business.
Does the Order Processing Fee Actually Offset Costs?
Ticketmaster defends the Order Processing Fee by stating it helps offset the costs of servicing customers. But does it really cost Ticketmaster $1 per ticket to process orders? Some analysis suggests the fee exceeds what’s needed to cover expenses:
Credit Card Processing Fees Are Around 2-3%
Every credit card transaction carries fees, which average 2-3% of the purchase amount. On a $100 ticket, that’s $2-3 in processing fees – more than the $1 Order Processing Fee covers.
Ticket Price | Credit Card Fee % | Credit Card Fee |
---|---|---|
$100 | 2% | $2 |
$100 | 3% | $3 |
Customer Service Costs Are Around $5 Per Order
Analysts estimate the customer service costs of processing an average order totals $5. Spreading this over 10 tickets would be 50 cents per ticket, much less than $1.
Cost Per Order | Tickets Per Order | Cost Per Ticket |
---|---|---|
$5 | 10 | $0.50 |
Fraud Prevention Saves More Than It Costs
Effective fraud screening actually results in cost savings by preventing losses. So fraud prevention tools can pay for themselves and require minimal net investment.
Does Ticketmaster Need the Order Processing Fee?
Given the analysis above, some argue Ticketmaster doesn’t actually need the Order Processing Fee to maintain profitability. Here are some reasons why the fee may be unnecessary:
Ticketmaster is Highly Profitable
Ticketmaster makes around $1 billion in profit annually. As a large corporation, they have substantial revenue streams to cover costs of business.
Other Revenue Sources Exist
In addition to ticket sales and fees, Ticketmaster also earns money through advertising and upselling additional products.
New Technologies Are Reducing Costs
Automation and AI are decreasing the costs of tasks like customer service. Interactive bots can handle common inquiries at very low cost.
Fees Remain Even With Low Cost Digital Tickets
The Order Processing Fee remains in place even for digital tickets with minimal fulfillment costs. This suggests it generates net revenue not just cost offset.
Could the Order Processing Fee Be Removed?
Ticketmaster is unlikely to drop the Order Processing Fee voluntarily. But could customer complaints, regulation, or competition eventually force its removal? There are arguments on both sides:
Reasons the Fee Could be Removed
- Sustained customer backlash and PR damage
- Regulators blocking anti-consumer policies
- Competitors gaining share through lower fees
- Industry shift to lower cost digital distribution
Reasons the Fee May Remain
- Customers grudgingly tolerate the small $1 amount
- Lack of competitive marketplace for ticket sales
- Venues and teams benefit from Ticketmaster’s overall revenue
- Hard for competitors to challenge Ticketmaster’s dominant position
How to Avoid the Order Processing Fee
Given Ticketmaster’s dominant position in ticket sales, most customers are stuck paying the Order Processing Fee when buying tickets to major concerts and events. But there are a few workaround that may allow you to avoid it:
Buy Direct at the Venue Box Office
Tickets purchased directly at a venue’s onsite box office will not carry Ticketmaster fees. But the box office has more limited inventory, and you may need to line up well in advance of shows.
Use the Ticketmaster Mobile App
On some event pages, buying via Ticketmaster’s mobile app allows you to waive service fees including the Order Processing Fee. This option is not universally available but can provide big savings when it is.
Buy Via Third-Party Resellers
Tickets resold through secondary marketplaces like StubHub are unlikely to carry the Ticketmaster Order Processing Fee. But these tickets tend to sell at above face value.
Avoid Low Value Events
The Order Processing Fee remains $1 regardless of ticket price. On very low cost events, it may account for a large chunk of the total cost. Focusing on higher value events helps dilute the relative impact of the fee.
Is the Order Processing Fee Here to Stay?
The Order Processing Fee has remained in place since it was introduced in 2010. Given the lack of competitive pressure in the ticketing industry, it seems unlikely to disappear anytime soon. While customers may grumble about the charge, its small size and optional nature mean it has not caused substantial loss of business for Ticketmaster.
In the future, disruption from new technologies or competitors could potentially threaten Ticketmaster’s fees. But in the meantime, consumers have little choice but to resign themselves to the Order Processing Fee when purchasing through Ticketmaster.
The Bottom Line
The bottom line is that the $1 Ticketmaster Order Processing Fee, while nominal in amount, represents a source of continuous frustration for many customers. Ticketmaster defends it as an operational necessity, but critics argue it largely generates unneeded profit while making ticket prices less transparent.
For now, short of avoiding Ticketmaster altogether, customers have little option other than to pay the $1 fee. But hopefully in the future, a more competitive, consumer-friendly ticketing landscape will emerge and remove unnecessary charges like the Order Processing Fee.