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Passing card processing fees on to customers

Nolwenn Launay
  • Updated

Managing online payment processing costs is essential for your business. Upflow allows you to apply convenience fees to card payments, enabling you to pass on part or all of these costs to your customers. Here's how you can set up and manage convenience fees effectively.

 

What Are Convenience Fees?

Convenience fees are charges applied to card payments to cover the cost of processing transactions. With Upflow, these fees are automatically added to the payment when your customer selects the card payment method.

Choose to pass all, part, or none of the payment fees to your customers. Note: You cannot pass more than the payment processing fees. Regulations vary by country. Consult with your legal counsel to ensure compliance with local laws.

 

How Convenience Fees Are Calculated

Card processing fees have a fixed and variable component. When you pass those fees on to customers, the amount they will pay should increase proportionally so as to cover the added resulting processing fees. We apply the following formula to update it, where you specify the fixed ("F_fixed") & variable ("F_percent") inputs as mentioned above:

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So for example if you decide to pass 3.50% + $0.30, then the amount paid for a $1,000 invoice ("P_goal") by your customer via their Upflow portal will be: "P_charge" = $1,036.58.

 

What Is the Impact of Activating Convenience Fees?

When activated, convenience fees will:

  • Appear as a separate line item on the card checkout page for transparency.
    image (21).png

     

  • Be included in the Payments List view, allowing you to track transactions with convenience fees easily.

    image (23).png

 

Setting Up Convenience Fees

Activating Convenience Fees

  1. Head to your Settings:

  2. Enable the Toggle:

    • Activate the Convenience Fees toggle.

  3. Define the Fee Structure:

    • Specify a percentage and/or a fixed fee to apply to card payments. Note that your organization can only use one fee schema.

  4. Set Default Activation:

    • Decide whether to enable convenience fees by default for new customers. Existing customers will require manual or bulk activation.

     

    Card fees settings.png

 

Activating Convenience Fees for Your Customers

Individually

  • Go to the Customer Details page.

  • Use the toggle to activate or deactivate convenience fees for a specific customer.

    image (24).png

 

In Bulk

  • Navigate to the Customer List view.

  • Select multiple customers and use the bulk action feature to activate or deactivate convenience fees.

    image (25).png

 

Using Smart Rules

  • Configure Smart Rules to automate convenience fee activation based on specific criteria, such as customer type or any custom fields.

    image (26).png

 

 

Best Practices for Convenience Fees

  • Be Transparent: Clearly inform customers about convenience fees during the checkout process to avoid confusion. You can mention it in your email reminders or even create a dedicated campaign.

  • Stay Compliant: Work with your legal counsel to ensure your fee structure complies with local regulations.

  • Monitor Performance: Regularly review your Payments List view to track how convenience fees impact payment collection.

 

 

Conclusion

Convenience fees offer a practical way to offset payment processing costs while maintaining transparency with your customers. By following these steps, you can set up and manage convenience fees to support your business goals effectively.

 

For more details, check out the Online Payment Setup Guide or contact support@upflow.io.

 

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