Extra fee to invoicer if client's card is saved on file?

[drjh]

When I send an invoice to a client, am I charged extra per transaction if they select to keep a card on file? THanks. 

[puka · Accepted solution]

Hi @drjh,

Welcome to the community!

Great question. When you use the Invoice feature, your transactions are subject to a fee of 2.9% + 30¢. However, if a customer decides to charge a Card on File, the fee will change to 3.5% + 15¢ for that customer's transactions. For example, if you charge a customer's Card on File through an Invoice, the larger payments will cost more to process since the percentage is higher. You may want to have a look at your average Invoice transaction amount to determine which method of payment makes sense for your business.

You can learn more about the fees for each type of payment at What are Square's Fees?

[ChanKane]

"the larger payments will cost more to process since the percentage is higher" : So, if you lower the percenatage it will cost less to process, correct? 

Is there a particular process whence the customer can choose the option to pay with Card on File but that 3.5% is charged to the customer instead of me? 

[Helen]

Hi again @ChanKane. I'll share your request for lower processing fees for Card On File payments with the Payments team. I know that every bit of cost saving is helpful to anyone running a business.

For information about passing Square's fees to your customer, take a look at the discussion in this Seller Community thread: How do I add a surcharge to a customer's bill?

[sd590]

I didn't make a note of the date when it happened. Thanks.

[JustinC]

Hey @sd590 -- payments using a customer's card on file has always always been 3.5% + 15c. Take a look at @puka's post I've merged you to if you want to know more about Square's fees! 

[Sherrilynne]

i would hope with covid and the need for contactless payments that square would eliminate the additional % costs associated with using " card on file" .  we do this almost exclusively for clients now so we are not handling a card and have also eliminated them signing.  It should be the same for with or without card, imo.

[JustinC]

Is this related to using Card on File for invoicing as the thread title suggests? Want to make sure my response is relevant to your post. 

@Sherrilynne