Can I pass the transaction fee to my customer?

Yes. If a customer wants to pay an invoice with a debit or credit card through Invoice2go, you can choose to have them pay the card transaction fee:

How do I turn on fee pass-through? First, you must turn on the ‘Accept Debit and Credit Cards’ payment option in Settings. Once it’s turned on, you will see the option to pass the fee through to your customer.

How does it work? When your customers go to pay your invoice online (e.g., by clicking on the Pay Now button on the invoice), the transaction fee will be added to their total amount due. Let’s take an example $100 invoice. If your customer pays online, they would pay $103.30 and $100 will be deposited into your bank account ($103.30 * 2.9% + $0.30 = $3.30). If you have questions on how the calculation works, click here.

What if your customer is paying with a foreign card or an American Express? In some cases, additional fees may apply if a customer uses a foreign card or American Express. See below:

  • Canada: No extra fees apply if your customers pay with an American Express or foreign credit card
  • Outside Canada: Extra fees apply when your customers pay with American Express or a foreign credit card (see fees). For example, if you’re a small business owner in Australia and your customer pays a $100 invoice with a foreign card or an American Express, your customer’s total amount due will be $102.08. A fee of $3.26 will be deducted from the customer’s total amount paid of $102.08, leaving $98.82 to be deposited into your bank account.

What if I send an invoice in a foreign currency? We make this easy for you. We will pass through a flat 5% fee to your customer instead of the formula described above. This should cover both the foreign credit card fee and the foreign exchange fee.

What if my customer partially pays the invoice? The transaction fee applies to the partially paid amount. Using another $100 invoice as an, if your customer paid $50 towards the invoice they will be charged $51.20. The balance due will be $50 and $50 will be deposited into your bank account.

Am I allowed to do this? Fee pass-through is subject to regulations in some places. Before you use the fee pass-through feature, make sure you are familiar with applicable laws and regulations in your area for passing transaction fees on to customers.

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