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Passing credit card fees to your clients
Passing credit card fees to your clients

The pros and cons of having your clients pay the transaction fees

Michael Wagstaff avatar
Written by Michael Wagstaff
Updated over a week ago

โš ๏ธ Please review the following requirements โš ๏ธ

Requirements

  • Only available for businesses based in the United States and Canada.

  • Requires payments to be enabled.

All set? Let's go ๐Ÿš€


Transaction fees are always a contentious topic. The infrastructure that facilitates money moving from account to account costs money and someone has to pay it! Traditionally, most businesses absorb this as "the cost of doing business" and offer a convenient way to pay online.

After many requests, we now offer the ability for you to pass these fees on to your client! There are a few things to weigh before deciding if you want to do this:

  • Profit - you can increase your profit margin without raising prices by having your clients pay the fee for credit/debit card processing.

  • Perception - some clients may feel "nickel and dimed" by an additional fee being added at the time of making payment.

  • Increased use of cash/check - some clients may not want to pay online because of this fee, instead opting for cash or check payments. You'll have to decide if this is a good fit for your business based on the risks.


โš ๏ธ IMPORTANT - Please read before enabling this feature โš ๏ธ

When US-based companies pass on credit card fees, the option to accept ACH/bank transfer payments is automatically enabled. While bank transfers are free to your clients, bank transfers are NOT free to the business. Click here to review our current fees, and click here to learn more about bank transfer payments.


๐Ÿ’ณ Passing credit card fees to your clients

Once this feature is enabled, a fee (view current fees) is automatically added to your customer's total when a credit card is used for payment.

Important Notes

  • This feature will not apply to any inspections that were scheduled before this setting was enabled.

  • This feature can now be enabled or disabled on a per-inspection basis (here's how).

  • These fees will not appear in your metrics or accounting (this is not revenue and you will not be taxed on it).


๐Ÿ‘€ What do my clients see?

When paying for the inspection, your client is given two options to pay:

By law, when passing on credit card fees, a no-fee option needs to be offered to your client in addition to the option to pay via credit card.

For companies based in the United States, this option is offered through bank transfer (ACH). While this option is free to your clients, there is a fee charged to the business for bank transfers. Learn more about Spectora + Bank Transfers.

For Canadian companies, the no-fee option would be any fee-free payment option you offer outside of Spectora (cash, check, etc.).

After the inspection is paid, the processing fee will automatically be added as a line item on the invoice named "Technology Fee".


This wording cannot currently be edited. Why?


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