Processing fees help you recover the cost of credit card transactions by adding a transparent fee to relevant payments. Using this feature, you can automatically apply a fee as a percentage of the invoice amount when members or companies pay with a credit or debit card. Processing fees apply exclusively to card payments and do not support other payment methods, such as bank transfers, checks, or point-of-sale (POS) payments.
If you manage a coworking space where credit card fees impact your bottom line, you may find this tool valuable. In this article, you will learn how to set up processing fees, apply them correctly, and understand key system behaviors when using this feature.
Summary
Set up processing fees for credit card payments.
Choose the percentage fee for different card types, including Visa, Mastercard, and American Express.
Link processing fees to a Billing Plan to track revenue correctly.
Apply fees automatically to unpaid invoices once credit card details are added.
Understand how partial payments and alternative payment methods affect processing fees.
Turn off processing fees when needed and see how the system handles existing invoices.
Before you start
Important: Merchants can apply surcharges where permitted by federal and state laws. However, before charging fees, clear customer notification, such as prominent signage or explicit terms in agreements, is required.
When and why to use processing fees?
If you want to recover the transaction costs charged by credit card providers without manual adjustments, processing fees help you do this automatically. You may use this feature if your space processes numerous credit card payments and you want to avoid hidden costs that could impact your finances.
What you can achieve
With processing fees, you can set automatic charges for credit card payments to cover transaction costs without manual work.
You can:
Define a default fee and custom fees for Visa, Mastercard, and American Express.
Link fees to a specific Billing Plan so they are tracked under the correct revenue account.
Apply fees to all unpaid invoices when card details are added, ensuring no manual edits are needed.
For example, if a member adds a credit card after an invoice has been issued, the system will adjust the invoice to reflect the correct fee. If a member pays part of an invoice with a card and the rest with another method, only the card portion will include a fee based on the first payment method.
Processing fees do not apply to payments made by bank transfer, check, PayPal, or through hosted gateways. The system removes any card fee if a non-card method is chosen.
What you'll find in this section
FAQ: Processing Fees
What are processing fees?
What are processing fees?
Processing fees are additional charges applied automatically to credit card payments, helping you cover transaction costs associated with these payment methods.
Can I set different fees for different card types?
Can I set different fees for different card types?
Yes, you can specify different percentages for Visa, Mastercard, and American Express and set a default fee for other card types.
Are processing fees applied to all invoices?
Are processing fees applied to all invoices?
Processing fees apply only to invoices paid with credit cards. They are not added to invoices if no card details are provided or alternative payment methods are used.
What happens to processing fees if an invoice is partially paid?
What happens to processing fees if an invoice is partially paid?
Processing fees depend on the initial payment method. If the first payment is by credit card, fees apply. Subsequent credit card payments will not incur fees if the first payment was made using an alternative method.
What happens if I turn off the processing fees after using them?
What happens if I turn off the processing fees after using them?
Paid invoices: Fees paid via non-card methods will be removed.
Unpaid invoices: No new fees will be added to card payments.
Are there legal considerations for charging processing fees?
Are there legal considerations for charging processing fees?
Yes. Before applying these charges, ensure compliance with federal and state laws and clearly inform customers of processing fees through signage or agreement terms.
How are processing fees handled when a billing lock date is active?
How are processing fees handled when a billing lock date is active?
Additional fees cannot be applied to invoices that are locked due to a billing lock date. If this occurs, you will receive notifications via email and on the Admin Portal.