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How can I lower my processing fees using a service fee?

Regpack offers several settings that allow you to customize how you charge your users and what fees you and your users pay to process payments in Regpack.

In the Payments tab in Project Settings – we provide a few ways to customize the way the system charges your users.

Our Recommended Setup

We recommend adding a service fee to credit card transactions ONLY. This will either mean that users will pay the service fee when paying with a credit card OR encourage them to pay with a debit or check card, or via ACH, which will lower the processing fees you pay out of pocket.

To do this, simply enter a percentage amount in the “Online Service Fee” setting. Industry standard is 3%, but you can set this to whatever % you would like.

The default is “Off” enabling fees on debit and check cards and for the recommended setup, you’ll want to ensure it remains “Off”.

recommended payment processing setup

You can include debit and check cards with your service fee and/or charge a fee on ACH payments as well. Details on how to set this up are below.

Option 1: Enable a service fee on credit card transactions ONLY, excluding debit cards and eChecks/ACH.

There are a variety of settings under Payments in Project Settings that allow you to customize how service fees are applied depending on the payment method used.

The first way to control processing costs is to allow / not allow the use of higher fee and reward cards like Diners, AMEX, and Discover. You can turn those on and off in Project Settings, as shown below.

allowed credit cards

In general we recommend keeping these “On” because it’s most important to provide as many payment options as possible to applicants. We’ve allowed for a service fee to be added to credit card transactions to offset your cost of credit card processing fees.

To set a service fee on transactions, you can do that in Project Settings as well, under credit card fees:

credit card fees

Here you can set the service fee as a percent of the transaction, which is limited to your specific processing rates in your contract.

When set up, this fee is added to your user’s cart upon checkout.

Option 2: Enable a service fee on ALL electronic payments

You can decide if the service fee should be added for JUST credit cards, or also debit cards and ACH. Select “Off” if you want it to apply just for credit cards, or “On” for all electronic payments.

We recommend keeping it “off”, as this will provide a “free” (non service fee) option for your users to choose from, while also encouraging them to use a debit card or ACH payment method. And in doing this, you will lower your processing fees since debit and ACH rates are lower than credit card rates.

If you would like to charge a service fee on ACH transactions as well, you can set that percent here. Again, the amount you put here is limited to your contracted processing rates.

echeck fees