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Processing Fees: Who Pays and How It Can Be Configured

Written by Brianna Lysaith
Updated yesterday

When invoices are processed through the platform, payment processing fees are automatically applied based on the payment method used (for example, credit card vs. bank transfer). The platform provides flexible configuration options so your team can decide whether to absorb those fees or pass them on to your clients.

Below is a clear breakdown of how fee responsibility works and the ways it can be customized.


Default Behavior

By default, your company pays all processing fees.

This means:

  • The client pays only the invoice amount

  • Your company receives the invoice total minus processing costs

  • No additional surcharge appears to the client

This setup is commonly used when businesses want simple billing or prefer not to expose payment surcharges to clients.


Passing Fees to the Client

Your team can choose to transfer all or part of the processing fee to the client.

When enabled:

  • The client sees an added fee during payment

  • Your company receives the full invoice amount

  • The platform collects the processing cost from the client instead


Payment Method–Specific Fee Rules

Fee responsibility does not have to be universal across all payment types.

For each payment method (e.g., credit card and ACH), you can configure one of the same four rule options:

  • A. Your company pays all fees

  • B. Client pays all fees

  • C. Your company splits fees with client

  • D. Your company sets custom rules per client

The key distinction is that while the rule options (A–D) are identical for both payment methods, the selected rule can differ by payment type.

Example Configuration

Payment Method

Selected Rule

Who Pays

Credit Card

B

Client pays all fees

ACH / Bank Transfer

A

Tenant pays all fees

This approach is common because credit card processing fees are typically higher, whereas ACH fees are generally lower and more predictable. As a result, tenants often choose to pass credit card fees to clients while absorbing ACH fees themselves.


Summary

Your company can configure processing fee responsibility separately for each payment method. While the same four rule options apply to both credit card and ACH payments (tenant pays all, client pays all, split fees, or custom per client), the selected rule can differ by payment type. This flexibility allows businesses to balance profitability, competitiveness, and client experience without changing their invoicing workflow.

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