When using Stripe for payment processing, it's important to understand how transaction fees work and how to account for them in your pricing structure.
Stripe Processing Fees
Credit Card Transactions: 2.9% + $0.30 per transaction
ACH Bank Transfers: 0.8% per transaction (capped at $5)
Does Chalk It Pro Upcharge These Fees?
No, Chalk It Pro does not add any extra fees on top of Stripe’s standard rates. Your Stripe account is entirely yours, and you are responsible for these processing fees—not your customers. Stripe automatically deducts these fees from every payout.
Because of this, Chalk It Pro provides a way to recover these costs by allowing you to charge a recurring processing fee on subscription memberships. You can enable this in the Membership Set-up section.
At this time, one-off purchases like punch cards or store items do not include processing fees. However, the best practice is to factor these costs into your pricing to avoid absorbing the fees yourself.
Best Practices for Handling Processing Fees
Many businesses implement processing fees strategically. Here are some common approaches:
Encouraging ACH Payments
Add a Processing Fee for credit card payments.
Offer to waive the fee when a customer pays via ACH as an incentive to use the lower-cost payment method.
Separate Payment Plan Options
Create two payment plans:
One with a credit card processing fee.
Another with an ACH processing fee.
When assigning memberships, select the appropriate plan based on the customer’s chosen payment method.
Flat-Rate Processing Fee for All Payments
Instead of separate fees, charge a flat processing fee for all payments.
Example: A $150/month membership could have a $2.50 flat processing fee, balancing the cost difference between credit card ($4.65) and ACH ($1.20) fees.
Compliance: Naming Your Fees
Some states and countries restrict the use of terms like "Credit Card Fee." To stay compliant, use neutral terms such as:
✅ Processing Fee
✅ Administrative Fee
✅ Transaction Fee
By implementing a processing fee strategy, you can offset payment costs while staying compliant with regulations.