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
You cannot call these fees a surcharge but if you call them an online handling fee, that will allow you to add the fee.
I agree that this would be a great feature and I can't stress how much I'd like to see it added!
Daniel Friedman commented
Hi Admin, whilst the individual credit company may have rules against this feature, is it a legal requirement?
Should they want to cancel my account as a result, It would be an issue I should have to work through, not Wild Apricot.
I'll just find another merchant that wants to work with me :)
Passing on credit card fees is allowed in Australia (although the charge must be no more than the fee charged by the bank/cc company) - we would seek that online payments be subject to a surcharge - particularly the PayPal fee.
Please add a button which allows our members to optionally add a [3%] fee to their bill to help our club defray the credit card processing costs.
Charyl Luth commented
A 3.5% fee would cover Stripe fees. Many organizations, including government organizations (even electric companies) charge online service fees for using a credit card.
It would appear that since others can do this, it could be done with WA as well.
If a person checked, I will pay online (with a small explanation that a 3.5% payment processing fee will be added), then this amount could be charged to the invoice.
Please design this feature.
Annie Hunt commented
Our association supports this suggestion. We would appreciate the option to adding a convenience fee to our members that wish to process payment by using a CC.
We were referred to use Stripe as our payment processor. They mentioned building the fee into the cost of our event/item. However, we would rather attach a percentage 'fee' of some kind to the purchase as a whole.
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).