credit card fees to be paid by members
Our members love being able to pay their membership dues by credit card. However, our biggest gripe with the payment systems that apricot supports is that there doesn't appear to be a way to give the credit card processing fee to the member, rather than our company. Since our membership costs are very high ($36,750), these small (~ 3.5%) fees really cost us a lot of money ($1,286.25), and it would be very helpful if we could pass these fees back on to the member.
For example, if there was a way to allow members to manually enter in the amount they want to pay by credit card (including the 3.5% fee), rather than automatically having to pay the full invoice amount (less the 3.5% fee). I know Intuit QuickBooks allows the members to add the fee to their payment, but Apricot doesn't support intuit quickbooks online payments.
Note: MasterCard and Visa merchant rules do not allow to charge a fee (surcharge) when you use credit card
I agree with this suggestion 100%. Currently we only take payments by cheque or bank transfer. We are unable to offer online payments because of the transaction fees. If we could automatically apply a fee to all online invoice payments the problem would be solved. This must be an issue for lots of WA users.
George Ludlow commented
Our non-profit club has voted to allow on-line credit card payments (via Stripe) based on the condition that the member be charged a "convenience fee" that covers (more or less) the credit card processing charges from Stripe. In other words, if a member chooses to pay online, their invoice would need to be changed (programmatically, based on this selection) to include this extra fee.
Larry Gomes commented
We would also like to be able to add a $2.00 convenience fee to the membership amount. It could work similar to the way the tax feature works except it would be a fixed amount and not a percentage.
Looked through the string here but don't see an answer, it is legal to add a surcharge for CC payments and as noted it adds up so would hope WA has or is working payment option surcharge. Please let me know.
Our Not-for-profit would love to be able to offer online payments but the fees eat up too much. Would need to be able to add a service charge or convenience fee so we can pass along the cost to the members who choose to pay by card.
Chuck Pena commented
Evegeny, I think your credit card fee info is a bid dated. I looked into to this is great detail 5 years back and after a court ruling that allowed several major companies to charge these fee the limitations on smaller companies has also been pretty relaxed. We deal with paypal and it isn't ilegal to pass on the fees but is against against their policy.
A supervisor at paypal, point blank told me that their isn't any paypal police watching for who is doing this but they don't think you should and feel it it a bad business plan. We confirmed with them we can offer a cash discount price and paypal price. One last point, I believe it was discover credit card allowed the passing on of the fees but only if you pass it on for all credit cards you accept.
A workaround would be to use the tax feature and allow us to re-label it paypal fee.
Thanks for a comment, Jennifer.
Convenience fee might be a solution here, but this needs deeper investigation. I'll come back as soon as I have any news.
Oleg, Product Designer @ Payments Team
Jennifer Mackey commented
I'd love to see this too. You are allowed to do it if you call it a convenience fee or at least that is what I have been told.
The ability to add a surcharge to online payments would be very much appreciated. As mentioned before, the payments systems often charge fees. I would like to be able to add this fee to event and membership fees when payed online.
A 3.5% fee would cover Paypal fees. Many organizations, including government organizations (even electric companies) charge online service fees for using a credit card.
It would appears that since others can do this, it could be done with WA as well similar to "tax" page when taxes get added. If a person checked, I will pay online (with a small blurp that a 3.5% payment processing fee will be added), then this amount could be charged to the invoice like taxes would be added.
include processing fees universally to invoices. A certain percentage.
Like how taxes are included in forms.
Ed Allison commented
OK what about PayPal fees? no restriction many companies in Australia also pass on the mastercard fees?
Kim: that what people do, but strictly speaking your contract with credit card providers does not allow you do this. You are not allowed to give then preference of payments in cash versus credit card.
Kim Skimmons commented
Evgeny: You should be able to give a discount for non-credit-card transactions without violating the merchant contract. So instead of a 3% surcharge for credit card transactions, set the base price higher and allow a 2.9% discount (the equivalent).
Ed Allison commented
I would like to be able to add an surcharge like Paypal fees to the members renewal page. ie 12 months is set to $50.00 if you wish to pay by PayPal then the surcharge is automatically added to the total payment coats
Guillaume - I'm not aware of a workaround.
I also want to mention, that as far as I know, MasterCard and Visa merchant rules do not allow to charge a fee (surcharge) when you use credit card. May I ask you, how do you overcome this requirement when you suggest different price for cash and credits?
Right now it forces to create 2 Membership levels - one with the fees included and one without. Or is there a better way?
Our members pay by credit card, check, or ACH transaction, or bank wire transfer so we cannot build the credit card fee into the membership fee.
Do your members have to pay by credit card only or you also accept check payments? If credit cards only, why don't you add the fee into membership fee itself and add a note that credit card fee is included into the price?
Phil Anderson commented
I'm fairly sure you can set a % fee like a credit card surcharge in the tax settings - tax rules. I use this for events but would assume it works for membership renewals?