Novi Pay Town Hall

Town Hall Recap

This Town Hall recording includes the full context and nuance behind the updates shared by our CEO, Pete Zimek. The recap below highlights the main talking points in a concise format. We encourage you to watch the recording for additional detail. The recording has been uploaded with chapters you can skip to, based on topic.

Cutting to the Chase: Novi Pay Is Changing Its Processor

We opened the Town Hall with a direct and honest explanation of why we are transitioning away from Stripe. Pete walked through the communication challenges that emerged from a renewal conversation with Stripe, where we were notified of significant rate increases for our customers. Additionally, turnover within Stripe’s internal teams caused guidance to become increasingly inconsistent. Those issues made it difficult to get the clarity and reliability we expect from a payment partner. When it became clear that the existing setup could not reliably support customers going forward, our team made the decision to move to a processor that can provide better alignment, clearer communication, and dependable support.

Pros

• Clearer communication and expectations with the new processor

• A foundation that is better suited to the way Novi Pay operates
• Reduced risk created by inconsistent support from the prior setup
• Confusing workflows (top-ups) go away
• New opportunities for additional services (in-person processing, affinity programs)

Cons

• All current Novi Pay customers will need to complete a migration

• Slight adjustments to the fee structure

• Some customers may have questions during the transition process

How Novi Chose Fiserv

From there, we outlined how our team evaluated potential payment partners before selecting Fiserv. The evaluation focused on reliability, the quality of support, reporting capabilities, and how well the platform could handle the types of transactions associations process every day. Fiserv’s offering met the criteria we set and provided a path forward that ultimately better fits Novi Pay’s needs.

Pros

• Foundational institution with significant resources and an emphasis on partnership

• Support structure that aligns with our expectations

• Collaborative partners that understand both online and in-person payments

Cons

• Minor new processes for admins to learn

• Migration steps required for all organizations

What Will Change for Customers

We also explained what Novi customers can expect during the transition. Each customer will complete a straightforward "Know Your Customer" (KYC) application (just like you completed for Novi Pay originally) while our team will manage the technical changes behind the scenes. Your members will continue to check out the same way they do today, and Stripe historical data will remain available for refunds and transaction history.

Pros

• No disruption for members

• Easier ACH payment for members

• Stripe remains connected for refunds and historical reporting

• Checkout flow and reporting stays familiar

Cons

• Slight adjustments to the fee structure
• Admins will experience a few process changes

• KYC must be completed before migration

Rates, Fees, and Pricing Structure

The Town Hall included an explanation of how we expect Fiserv’s pricing to compare to Stripe's. Some fees will shift, but based on Pete’s explanation the overall effect is expected to be close to a “wash.” Novi worked with Fiserv to keep the structure as close as possible to what customers are used to seeing today.

Pros

• Expect a decrease in ACH fees

• Expect an increase in ACH usage with an easier ACH process for members
• Expect faster payouts (1 day with Fiserv, instead of 2 days with Stripe)
• Members can expect faster refunds (up to a week faster than with Stripe)

Cons

• Expect a slight increase in credit card fees with Fiserv
  • At time of recording, fees are expected to be 2.95%
• Refunds will incur a processing fee
• Exact, final fee structure for customers is not finalized with Fiserv
  • We wanted to get this information to you as quickly as possible, choosing to move fast but transparently

Operational Impact: Reporting, Reconciliation, and Saved Cards

We spent time reviewing the operational details that matter most to finance teams. Reporting with Novi Pay will remain familiar. Saved cards that were stored under Stripe will continue to process until members update their information, so recurring payments are not cut off at the time of migration. Stripe will stay connected behind the scenes so organizations can continue to process refunds and review historical transactions for the period when Stripe was in use.

Pros

• Ongoing access to historical Stripe data for reporting and refunds

• Recurring payments can continue as members gradually update cards

• Novi Pay's batch and deposit level automation and reporting remain available

Cons

• There will be a period where both Stripe and Fiserv data are relevant for history

• Under-the-hood refund workflows will be slightly different from the prior setup

Timeline and Customer Actions

We closed the main update by outlining the roll out plan. Customers will not need to take any action until they receive clear communication from our team. Completing the KYC application will be the primary step for organizations. Novi will manage the remainder of the technical work so that the transition can happen in a structured and seamless way.

Pros

• A planned rollout that avoids rushed changes

• Novi handles the technical changeover

• Customers receive instructions before they are expected to act

Cons

• Admin time is required for KYC, no more than hour is anticipated

• There is a deadline of the end of January to move without incurring the new higher rates from Stripe

  • At the time of recording, Stripe's Novi Pay credit card fee after January is expected to go to 3.5%

Notes from the Q&A

The Q&A covered recurring questions about saved cards, refunds, payment links, reporting, and different types of fees. We confirmed that saved cards will continue to work until members update their information, refunds will be supported through the connected Stripe account for historical transactions, and invoice payment links will move to Fiserv without creating a different experience for members. We also clarified that the tools for reporting and reconciliation in Novi Pay will remain available and that convenience fees and invoicing fees continue to serve different purposes.

Several questions focused on international transactions. We confirmed that Fiserv supports a wide range of international cards that can serve associations with members outside the United States.

Closing Message

We concluded the Novi Pay updates with appreciation for the support and understanding shown by the Novi community. The discussion emphasized our responsibility to protect associations and keep their financial operations on solid footing. Chat feedback throughout the Town Hall frequently expressed gratitude for the transparency, clarity, and care reflected in Pete’s explanation.

What You Should Do Next

Please keep an eye out for communication from the Novi team. We will notify you when your organization is scheduled to migrate. When it is time to take action, we will provide clear instructions and guide you step-by-step.

Extra Sneak Peeks

For those attendees that were able to stay a bit longer than the scheduled town hall, Pete gave a sneak peek of an upcoming feature to support Payment Plans. An upcoming developer demo will go more in depth. The recording embedded above contains the sneak peek.

On the call, we also discussed charging credit card convenience fees. Thanks to one of our developers, we were able to get the following stats. Keep in mind, this is a relatively new feature.

• 20% of Novi customers are passing along convenience fees. (Combined optional and mandatory)
• 19% of customers are charging convenience fees on dues invoices
• 16% of customers are charging convenience fees on ecommerce invoices
• 17% of customers are charging convenience fees on event invoices
• 1% of customers are charging convenience fees on custom invoices
  • This is a brand new addition to the feature that must be enabled by an admin
• On all invoice types, most customers are charging convenience fees for any amount  (everything above $0)