Setting Up Convenience Fees
0.9 min read
|This article is about the Billing Manager app, not the Billing Wizard in 3PL Warehouse Manager. To learn about the Billing Wizard, please refer to the articles in the Billing Setup.
A convenience fee is a charge you can pass on to your customer for offering the convenience of electronic payments. Third-party logistics (3PL) providers can configure both the amount and type of convenience fee.
Configuring amount and type of Convenience Fees
- Go to Settings > General Settings.
- In the Convenience Fees section, click Edit.
- Choose the payment types for which you want to charge convenience fees. You may select both.
- Set the fee amount for each selected payment type.
- Click Save to apply your changes.
Fee limits and compliance
Before enabling convenience fees, ensure compliance with all applicable card brand rules and local laws.
Convenience fee limits:
- Credit Card payments: Maximum of 4%
- eCheck (ACH) payments: Maximum of 2% or $100, whichever is lower
How Convenience fees affect processing fees
Convenience fees are added to the invoice total before payment is processed. Stripe calculates the processing fees based on the total payment amount, which includes the original invoice amount and the applied convenience fee.
Important:
- Convenience fee limits (such as the ACH maximum) apply only to the convenience fee itself.
- These limits do not apply to Stripe or other payment processor fees.
- Because processing fees are calculated on the combined total, adding a convenience fee may result in a higher overall processing fee.
Example
If an invoice total is $1,000 and a $20 convenience fee is applied:
- The customer pays $1,020.
- Stripe processing fees are calculated on $1,020, not just the original invoice amount.