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The term 'service fee' in the context of Patreon's 2017 fee structure change refers to a new charge that was introduced by the company. This fee, which was set at 2.9% plus 35 cents for each subscription, was to be paid by the Patron, rather than being deducted from the Creator's total earnings as was the previous practice. This change was made with the intention of benefiting the Creators, according to the official statement from Patreon.
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In December 2017, Patreon announced a significant change to its fee structure that sent shockwaves through its community. The announcement introduced a new service fee of 2.9% plus 35 cents for each subscription to come out of Patron's pocket, rather than the previous practice of deducting the fee from the Creator's total earnings. Based on this before-after comparison of the fee structure, it appears that the new structure may be advantageous to the Creators. And that was the official reason the company gave to justify the change.
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