Here's how processing works in Regpack. Once users pay, their funds go into your merchant account, processing fees are removed, and the balance is deposited into your account. You can charge your users service fees to offset the processing fees.
Our Recommended Setup
Go to settings --> project settings --> payments
We recommend adding a service fee to credit card transactions ONLY. This encourages users to pay with a debit card, check card, or ACH, and charges them a service fee if they pay by credit card. This will lower your processing fees since debit and ACH rates are lower than credit card rates.
To add the service fee, add an amount in the box beside "Online Service Fee" and save.
- 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".
- You can Enable Fees on Check and Debit Cards as well if desired
- You can charge a service fee on ACH transactions as well, but the amount you put here is limited to your contracted processing rates.
When set up, this fee is added to your user's cart upon checkout.
Please note that the service fee adds to the user's total before the processing fees are removed. This means if your processing rate is 3.5%, setting the service fee at 3.5% will not cover the entire processing fee.