21
Why does nobody talk about charging for invoice processing fees?
Last week I sent out 8 invoices and noticed nearly $40 in fees eaten by PayPal and card processors between them. Three years ago I just ate those costs because I thought it was part of doing business, but last month a buddy in Phoenix told me he charges clients a 3% processing fee on every transaction. Now I'm stuck wondering if that drives people away or if it's just expected. Has anyone else tried adding that fee and did it hurt your relationships with customers?
3 comments
Log in to join the discussion
Log In3 Comments
shane_morgan14d agoMost Upvoted
My buddy Dave tried the flat fee thing and his clients acted like he asked for their firstborn child as collateral. $2.50 flat on a $20,000 invoice? That math works great until someone sends you $50 for a logo tweak and suddenly you're losing money on the fee. I've been charging 2.8% for about 18 months now and lost exactly two clients - both were the type who'd complain about free coffee. The other 40 something customers didn't even blink. Just be upfront about it in your invoice terms. People can handle a small percentage way better than a surprise fee they didn't see coming. Your mileage may vary but I'd rather lose the penny pinchers than eat $40 a month myself.
9
kelly_rivera14d agoMost Upvoted
Yeah I read somewhere that charging a percentage actually makes clients trust you more because they see you're taking the same hit they are. Do you think people just hate flat fees because they feel arbitrary?
8