Adding a convenience fee to your Chekkit Pay payment request

Introduction

Managing online payments efficiently is crucial for any business. At Chekkit, we understand that processing fees can add up quickly, impacting your bottom line. To help mitigate these costs, you can add a convenience fee to each Chekkit Pay payment request. This article will guide you through the process of adding a convenience fee of 2.9% to your transactions and explain how this impacts Stripe’s processing fees.

Why Add a Convenience Fee?

A convenience fee helps cover the transaction costs associated with using Chekkit Pay. This ensures that your business maintains most of its revenue without absorbing the extra expense. By transparently adding this fee, you can sustain your business operations while providing a seamless payment experience for your customers.

Calculating the Convenience Fee

Stripe calculates its fee as 2.9% of the entire transaction total (the original amount plus the convenience fee). This means that adding a 2.9% fee will come very close to offsetting the cost, but it will not cover it exactly. Businesses may receive a small amount less than the original charge (usually just a few dollars on larger transactions).

Step-by-Step Calculation

Identify the Original Amount: Determine the initial amount to be charged for the product or service.
Apply the Convenience Fee Formula:

Calculate the fee: Original Amount * 0.029
Add this to the original amount: Original Amount + Convenience Fee

Example Scenario

Let’s say you’re charging a customer $100 for a service. Here’s how you would calculate the total amount including the convenience fee:

Original Amount: $100
Percentage Fee: $100 * 0.029 = $2.90
Total Amount: $100 + $2.90 = $102.90

The customer will be charged $102.90. Stripe’s fee is then calculated on $102.90, which comes out to $2.98. Your net payout would be $99.92 — just slightly less than the $100 original charge.

Benefits of Adding a Convenience Fee

Revenue Protection: Reduce the impact of processing fees on your revenue.
Transparency: Maintain clarity with customers by showing the fee.
Sustainability: Support the long-term financial health of your business.

Conclusion

Adding a convenience fee to your Chekkit Pay payment requests is a straightforward way to minimize the impact of transaction costs. While a 2.9% fee won’t fully offset Stripe’s 2.9% fee due to how it’s calculated, it comes very close. By implementing this fee, you can provide a transparent payment experience for your customers while protecting your revenue.

For any further assistance or detailed guidance on setting up convenience fees in Chekkit Pay, feel free to reach out to our support team. We’re here to help you optimize your payment processes and enhance your business operations.