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scottkeen
Level 3

Charging Customers a Credit Card Processing Convenience Fee

I have 2 questions:

 

My business is in Virginia and it's legal to charge a convenience fee to customers who pay outside of the normal method for payment. The normal method for payment is by check, so I would like to charge a 3.5% convenience fee for customers who want to pay by credit card.

 

Question #1: My customer is in Maine. AFAIK, Maine is one of the few states that does not allow charging a convenience fee. My business is in Virginia where it is allowed. As a Virginia business where it is allowed, can I charge a convenience fee to my customer in Maine where it is not allowed?

 

Question #2: Has there been any progress in QuickBooks for AUTOMATICALLY adding a convenience fee (flat rate or percentage) to the amount due when a customer wants to make a payment for an invoice online? This needs to be AUTOMATIC depending on which method the customer chooses to make payment for an invoice online.

 

 

2 Comments
MarsStephanieL
QuickBooks Team

Charging Customers a Credit Card Processing Convenience Fee

Hi there, @scottkeen.

 

There are rules to be followed when charging a convenience fee to a customer especially in some states are prohibiting this including Maine. I suggest to consult your accountant to verify this.

 

Also, the automatic feature in applying a convenience fee in QuickBooks is not available. Although, you can add a convenience fee in the invoice line item manually.

 

Here's how to create an item:

 

  1. Go to Lists and select Item List.
  2. Click on the Item drop-down and select New.
  3. Select a type of the item. 
  4. Enter the necessary information.
  5. Click on OK once finished.

 

For more information about adding an item, you can also check out this article: Add, edit, and delete items.

 

I added this full article to know more about handing customer payments in QuickBooks: Process and take payments with QuickBooks Payments.

 

Count me in if you need anything else. I'll be here to help. Stay safe.

Fiat Lux - ASIA
Level 15

Charging Customers a Credit Card Processing Convenience Fee

@scottkeen 

As additional option, ask your customer to utilize MP as payment service. Stretch your clients’ cash flow by creating up to a 45-day float by paying bills via a credit card, even if the vendor doesn’t accept credit cards.
Vendors get paid with a physical check or with electronic bank transfers.

https:// melio.grsm.io/quickbooks

 

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