Mastering Payment Processing: A Step-by-Step Guide to Passing Fees to Customers in WordPress

Payment processors typically impose additional fees to ensure secure transactions for both buyers and sellers. By transferring these fees to customers, you can increase your revenue by approximately 3%.

We have developed numerous eCommerce websites using WordPress and have fine-tuned our payment processes to provide clear pricing. This experience has led us to investigate various methods for managing payment processing fees.

In this article, we will guide you through the process of passing payment processing fees to customers in WordPress, step by step.

Understanding these strategies will enable you to select the most suitable option for your business.

Why Should You Pass Payment Processing Fees to Customers in WordPress?

If you operate an online store, you may have observed that most payment processors charge additional fees for each transaction, as well as percentage-based fees and gateway fees.

For example, if a customer purchases a chair from your furniture store for $50 and pays using Stripe, you will only receive $48.55. This is due to Stripe’s fee of 2.9% plus $0.30 per transaction.

By passing this processing fee onto customers, you can retain the full amount ($50) for your product or service without having to absorb this fee as a business cost.

Additionally, this approach gives you greater control over your pricing strategy.

This approach enhances transparency by clearly displaying fees on the checkout page. However, be aware that some customers may be deterred by additional fees at the end of their purchase, which could lead to abandoned carts.

We suggest experimenting with this strategy to gauge the response of your specific audience.

Now, let’s explore how to effortlessly transfer payment processing fees to customers in WordPress.

In this guide, we will discuss three methods, and you can use the links below to navigate to your preferred option:

Method 1: Transfer Payment Processing Fees to Customers With WP Simple Pay

WP Simple Pay is the top-rated Stripe plugin for WordPress, enabling you to accept customer payments seamlessly without the need for a shopping cart. It features pre-designed templates, a user-friendly form builder, and the ability to pass payment processing fees directly to your customers.

Additionally, WP Simple Pay is an excellent option for membership sites, online course sales, or for selling individual products in your eCommerce store.

We have thoroughly tested it on our demo site and confirmed its security and reliability. For more details, check out our comprehensive review of WP Simple Pay.

To get started, you need to install and activate the WP Simple Pay plugin. For a detailed walkthrough, refer to our step-by-step guide on installing a WordPress plugin.

👆 Important Note: WP Simple Pay offers a free plan, but you will need to upgrade to the pro version to access the fee recovery feature.

Once activated, a setup wizard will appear on your screen. Click the ‘Let’s Get Started’ button to proceed.

This will lead you to the first step, where you’ll need to enter your plugin’s license key and click the ‘Activate and Continue’ button.

You can find this information in your account on the WP Simple Pay website.

Next, you will need to link your Stripe account with your WordPress site.

Click the ‘Connect with Stripe’ button to proceed.

Next, log in to your Stripe account to link it with WP Simple Pay, then complete the remaining setup wizard steps.

For comprehensive guidance, refer to our tutorial on creating WordPress forms with payment options.

Begin by navigating to the WP Simple Pay » Add Newpage in the WordPress admin sidebar. This will take you to the ‘Select a Template’ page where you can choose your preferred template.

In this tutorial, we will create a straightforward payment form.

The form builder will open on your screen. Here, you need to enter a name and description for the form you are about to create.

Next, choose ‘On-site payment form’ as the form type and switch to the ‘Payment’ tab.

Scroll down to the ‘Price Options’ section and enter an amount for your product or service. You can also choose whether it will be a one-time or recurring payment.

To add multiple prices, click the ‘Add Price’ button at the top.

Then, scroll down to the ‘Payment Method’ section and check the boxes next to the payment gateways you want to include in your form.

With WP Simple Pay, you can easily integrate various payment methods such as Klarna, Affirm, AliPay, debit cards, credit cards, and SEPA Debit.

After that, click the ‘Configure’ link next to your preferred payment method.

A prompt will appear on your screen, where you need to select the option ‘Add an additional fee to payments made with this payment method.’ You can then specify the transaction fee percentage for the product you are selling.

By default, Stripe deducts its processing fee from the total amount you receive. By selecting this option, you will pass that fee onto the customer instead.

Next, click the ‘Update’ button to save your settings.

The payment processing fee will now be automatically included in the customer’s total on the checkout page.

If you believe that imposing a recovery fee without customer consent could harm your reputation, you can offer your customers the option to opt-in.

To accomplish this, navigate to the ‘Form Fields’ tab. Here, you can add, rearrange, or remove fields in the form as you wish. For further details, refer to our tutorial on accepting payments with Stripe in WordPress.

After that, open the ‘Form Fields’ dropdown menu and choose the ‘Fee Recovery Toggle’ option. Then, click the ‘Add’ button.

Users on your site can now choose to cover the payment processing fee themselves by toggling this switch.

Next, navigate to the ‘Payment Page’ tab and select the ‘Enable a dedicated payment page’ option.

After that, customize your payment form page by adding a permalink, selecting a color scheme, uploading an image, and including footer text.

Once you have finished making changes, remember to click the ‘Publish’ button at the top.

Now, simply visit your payment form page to see the fee recovery feature in action.

Method 2: Transfer Payment Processing Fees to Customers Using Easy Digital Downloads

If you sell digital products such as eBooks, PDFs, music, or spreadsheets, this method is ideal for you.

Easy Digital Downloads is the top WordPress plugin for selling digital products, making it very easy to pass processing fees to customers through an add-on.

We use Easy Digital Downloads to sell plugins and software, and we are very satisfied with its performance. To learn more, check out our comprehensive Easy Digital Downloads review.

First, install and activate the Easy Digital Downloads plugin. For detailed instructions, refer to our beginner’s guide on how to install a WordPress plugin.

👆NoteEasy Digital Downloads offers a free plan, but you’ll need the pro version to access the ‘Gateway Fees’ extension.

After activating the plugin, navigate to the Downloads » Settings section in your WordPress dashboard to enter your license key.

You can find this information in your account on the Easy Digital Downloads website.

Next, set up your store to begin selling products. For comprehensive guidance, refer to our beginner’s guide on selling digital downloads in WordPress.

Once you’ve completed that, go to the Downloads » Extensions section in the WordPress admin sidebar and find the ‘Gateway Fees’ extension.

Click the ‘Install’ button located beneath it.

After activating the add-on, head to the Downloads » Settings » Payments page and select the ‘Gateway Fees’ tab.

Here, you can specify the payment processing fee you wish to charge your customers by entering values for ‘Percent fee for Stripe’ or ‘Flat fee for Stripe’.

You can also add a label that will appear on the checkout page to clarify the additional fee being applied to the customer.

From this section, you can configure the gateway settings for all the payment methods you have integrated into your site.

Remember to click the ‘Save Changes’ button to ensure your settings are saved.

You can now check your WordPress site to see the new payment processing fee displayed on the checkout page.

Method 3: Transfer Payment Processing Fees to Customers Using WP Charitable

This method is ideal if your website accepts donations or runs crowdfunding campaigns.

WP Charitable is a widely-used WordPress donation plugin that enables you to create unlimited fundraising campaigns.

During our testing, we discovered that it includes a Fee Relief extension that allows users to offset payment processing fees. For more information, check out our comprehensive WP Charitable review.

To follow this tutorial, you will need the WP Charitable Plus license to access this extension.

First, install and activate the core Charitable plugin, which is completely free. For detailed guidance, refer to our tutorial on how to install a WordPress plugin.

Next, navigate to the Charitable » Settings page in the WordPress dashboard to enter your pro plan’s license key and click the ‘Verify Key’ button.

You can find this information in your account on the WP Charitable website.

After that, go to the Charitable » AddonsAccess the page from the WordPress admin sidebar and locate the ‘Charitable Fee Relief’ extension.

Next, click the ‘Install Addon’ button.

After activating the addon, navigate to the Charitable » Settings page and select the ‘Extensions’ tab.

Here, you can enable the ‘Opt-in checkbox, checked by default’ option to activate fee relief mode. This will add a checkbox to the donation form for fee recovery. If the user prefers not to cover the processing fee, they must uncheck this box.

If you prefer to automatically include the recovery fee with the donation amount without giving users an option, you can select the ‘Automatic opt-in’ option.

After that, click the ‘Enable Fee Relief’ button next to the payment gateways to activate fee recovery for payment processing.

Once this is done, you can specify a payment processing fee as a combination of a percentage and a fixed amount per donation.

For example, if PayPal charges 2.9% plus $0.30 per transaction, you will need to enter these amounts in the respective fields.

Finally, remember to click the ‘Save Changes’ button to apply your settings.

Begin creating your website’s fundraising campaign by visiting theCharitable » Add Newsection in your WordPress dashboard.

Enter a name for your campaign, which will lead you to the ‘Select a Template’ page.

Click the ‘Create Campaign’ button under your chosen template.

This action will launch the drag-and-drop builder, allowing you to customize form fields by dragging, rearranging, and deleting them as needed.

For instance, you can include a ‘Donation Amount’ field and offer some custom amounts for users to select from in the left column.

Additionally, you can add a progress bar, social media links, a campaign title, and more from the left sidebar. To configure payment gateways, switch to the ‘Payment’ tab.

For further guidance, check out our tutorial on raising funds through crowdfunding in WordPress.

When you’re finished, change the form status to ‘Publish’ using the dropdown menu in the top right corner, then click the ‘Save’ button at the top to save your settings.

Now, visit your WordPress site to see the donation form featuring the fee recovery option.

Bonus: Enable ACH Payments in WordPress

If you prefer not to transfer payment processing fees to your customers in WordPress, consider accepting ACH payments on your site.

ACH payments are electronic bank transfers made through the Automated Clearing House (ACH) network in the United States. Please note that this payment method is only applicable for businesses operating within the USA.

By accepting ACH payments, you can significantly reduce your transaction fees, as Stripe charges only 0.8% per transaction, with a maximum fee of $5.00.

For instance, if you run a WooCommerce store and a customer purchases products totaling $100, the transaction fee for ACH payments would only be $0.80. In contrast, using other payment methods could result in fees of $3.20.

You can easily enable ACH payments on your website by using the WP Simple Pay plugin.

Just install and activate the plugin, then navigate to the WP Simple Pay » Add New section in your WordPress dashboard. Here, select the ‘ACH Direct Debit Form’ template to create a payment form using the builder.

After adding the form to your website, customers who choose this payment gateway will benefit from lower transaction fees.

For comprehensive guidance, check out our tutorial on accepting ACH payments in WordPress.

Common Questions About Payment Processing Fees

Here are some frequently asked questions regarding the practice of passing payment processing fees to customers.

1. Is it permissible to pass payment processing fees to customers?

Yes, in many regions, it is permissible to pass these fees to customers, a practice often referred to as ‘surcharging.’ However, regulations can differ widely depending on the state or country.

It’s advisable to review your local laws or seek advice from a legal expert to ensure compliance before implementing any fees.

2. Am I required to inform customers about the additional fee?

Absolutely. Being transparent is crucial for fostering trust with your customers. You must clearly communicate the fee prior to the final transaction.

Most methods outlined in our guide automatically include a clear line item at checkout, ensuring customers are aware of what they are being charged for.

3. Could adding a fee for payment processing negatively affect my sales?

This is a common concern, but when managed properly, it typically does not affect conversion rates. Most customers recognize that businesses incur costs.

Being transparent about fees demonstrates integrity. You can position it as a way to keep the base prices of your products affordable for all customers.

4. Are there other options besides passing these fees onto customers?

Absolutely, one effective alternative is to promote payment methods that incur lower transaction fees. As mentioned in our bonus section, accepting ACH payments can greatly lower your costs.

Another strategy is to slightly raise your overall product prices to cover the processing fees. However, directly passing the fee to customers is often viewed as more honest.

We hope this guide has helped you understand how to effectively pass payment processing fees to customers in WordPress. You might also want to check out our beginner’s guide on accepting credit card payments on your WordPress site and our collection of surprising payment statistics.

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