> ## Documentation Index
> Fetch the complete documentation index at: https://help.coachiq.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Processing Fees Configuration

> Configure who pays Stripe transaction fees - absorb costs or pass them to clients

<Info>
  **Where to find this**: Product Builder → Section 2 (Payment Options) → Processing Fee
</Info>

## What processing fees are

Every successful transaction through Stripe incurs fees:

**US standard rates:**

* 2.9% of transaction amount
* Plus \$0.30 per transaction

**Example:**

* \$100 charge
* Stripe fee: (100 × 0.029) + 0.30 = \$3.20
* You receive: \$96.80

<Note>
  Fees set by Stripe, not CoachIQ. International cards and currency conversions may have additional fees.
</Note>

## Who pays the fees

You decide who covers Stripe's processing fees:

<Tabs>
  <Tab title="You absorb fees">
    **Default option - You pay the fees**

    Client pays product price. You receive product price minus Stripe fees.

    **Example:**

    * Product price: \$100
    * Client pays: \$100
    * Stripe fee: \$3.20
    * You receive: \$96.80

    **Pros:**

    * Simpler pricing
    * Better client experience
    * Standard industry practice

    **Cons:**

    * Reduces your revenue per sale
    * Fees add up over time
    * You lose 2.9%+ on every sale
  </Tab>

  <Tab title="Client pays fees">
    **Pass fees to client**

    Stripe fees added as separate line item at checkout. You receive full product price.

    **Example:**

    * Product price: \$100
    * Stripe fee: \$3.20
    * Client pays: \$103.20
    * You receive: \$100.00

    **Pros:**

    * You receive full product price
    * No revenue lost to fees
    * More accurate pricing

    **Cons:**

    * Higher price may reduce conversions
    * Adds complexity at checkout
    * Some clients resistant to fees
    * State regulations may restrict this

    <Warning>
      Some US states restrict credit card surcharges. Check local laws before passing fees to clients.
    </Warning>
  </Tab>
</Tabs>

## Configure processing fees

<Steps>
  <Step title="Open Product Builder">
    Go to **Payments → Products** and either:

    * Click **+ Create Product** for new product
    * Click existing product to edit
  </Step>

  <Step title="Navigate to Payment Options">
    Scroll to **Section 2: Payment Options**
  </Step>

  <Step title="Find Processing Fee toggle">
    Choose to toggle processing fee on or off

    <Frame>
      <img src="https://mintcdn.com/coachiq/dlCQVljhIP1SQ1CS/images/processing-fee.png?fit=max&auto=format&n=dlCQVljhIP1SQ1CS&q=85&s=829c9ee4c36abb21a9dd96fcc98538a9" alt="Processing fee toggle in CoachIQ Product Builder payment options" width="1600" height="1220" data-path="images/processing-fee.png" />
    </Frame>
  </Step>

  <Step title="Decide on fee">
    Choose whether you or client pays Stripe fees.

    If you select **Add processing fee**, additional fields appear.
  </Step>

  <Step title="Configure fee structure (if client pays)">
    **Two fields appear:**

    **Fixed amount:** \$0.30 (Stripe's fixed fee)

    **Percentage:** 2.9% (Stripe's percentage fee)

    These default to Stripe's standard US rates. Adjust if your Stripe rates differ.

    <Tip>
      Check your actual Stripe rates in Stripe Dashboard. Rates may differ based on processing volume, country, or negotiated pricing.
    </Tip>
  </Step>

  <Step title="Save product">
    Click **Create Product**.

    <Check>
      **Fee configuration saved.** Applies to all future purchases of this product.
    </Check>
  </Step>
</Steps>

## How clients see fees

<Tabs>
  <Tab title="You absorb fees">
    **Simple checkout - Client sees product price only**

    ```
    Product: 60-Minute Session
    Price: $75.00
    ─────────────────────
    Total: $75.00
    ```

    Clean, simple. Client pays exactly what's advertised.
  </Tab>

  <Tab title="Client pays fees">
    **Checkout shows fee as separate line item**

    ```
    Product: 60-Minute Session
    Price: $75.00
    Processing Fee: $2.48
    ─────────────────────
    Total: $77.48
    ```

    Transparent breakdown showing fee separately.

    <Info>
      Processing fee labeled clearly so client understands the additional charge.
    </Info>
  </Tab>
</Tabs>

## Calculating fee amounts

**Stripe's standard formula:**

Fee = (Transaction amount × 0.029) + \$0.30

**Examples:**

| Product Price | Stripe Fee | You Absorb       | Client Pays          |
| ------------- | ---------- | ---------------- | -------------------- |
| \$50          | \$1.75     | You get \$48.25  | Client pays \$51.75  |
| \$100         | \$3.20     | You get \$96.80  | Client pays \$103.20 |
| \$200         | \$6.10     | You get \$193.90 | Client pays \$206.10 |
| \$500         | \$14.80    | You get \$485.20 | Client pays \$514.80 |

<Note>
  These calculations use 2.9% + \$0.30. Your actual rates may differ based on your Stripe account.
</Note>

## Custom fee structures

Some coaches configure custom fee amounts:

**Higher than Stripe fees:**

* Cover additional costs (bookkeeping, software)
* Flat \$5 processing fee instead of calculated amount
* Markup percentage (3.5% instead of 2.9%)

**Lower than Stripe fees:**

* Split costs with client (1.5% + \$0.15 each)
* Absorb fixed fee, pass percentage only
* Subsidize to reduce client price impact

<Warning>
  Be transparent about fees. Unexpected charges damage trust and may violate consumer protection laws in some areas.
</Warning>

## Legal considerations

**Before passing fees to clients, check:**

**State regulations:**

* Some states prohibit credit card surcharges
* Others require specific disclosures
* Rules vary by location

**Stripe's terms:**

* Must comply with Stripe's surcharging requirements
* Proper labeling required
* Card brand rules apply

**Disclosure requirements:**

* Must inform clients before purchase
* Can't hide fees in fine print
* Clear explanation of what fee covers

<Warning>
  Consult legal counsel about surcharging regulations in your jurisdiction before implementing.
</Warning>

## Impact on pricing strategy

<Tabs>
  <Tab title="Absorb fees - Price higher">
    **Build fees into your base price**

    If you absorb fees, increase base price to maintain margins:

    * Target: \$100 profit per session
    * Stripe fee: \~3%
    * Set price: \$103 + to net \$100

    Client sees: \$103 (clean price)You receive: \~\$100 after fees
  </Tab>

  <Tab title="Pass fees - Price lower">
    **Price products at target, add fees**

    If clients pay fees, price at exact target:

    * Target: \$100 profit per session
    * Set price: \$100
    * Fee added: \~\$3.20

    Client sees: $100 + $3.20 fee = $103.20
        You receive: $100
  </Tab>
</Tabs>

**Result:** Similar final cost to client either way. Choose based on market expectations and legal compliance.

## International and special fees

**Additional Stripe fees may apply for:**

**International cards:**

* Additional 1% for non-US cards
* Configure: 3.9% + \$0.30 for international

**Currency conversion:**

* Additional 1% for currency conversion
* Applies when charge currency differs from payout currency

**Disputed charges:**

* \$15 chargeback fee
* Separate from processing fees
* Usually not passed to clients

<Note>
  Most coaches use standard 2.9% + \$0.30 for US cards and absorb international card fees rather than configuring multiple fee structures.
</Note>

## Changing fee configuration

**Existing products:**

* Edit product → Section 2 → Update processing fee settings
* Changes apply to future purchases only
* Doesn't affect past transactions

**Active subscriptions:**

* Fee configuration locked at subscription creation
* Can't change mid-subscription
* Applies to new subscriptions only

<Warning>
  Changing who pays fees mid-campaign may confuse clients. Communicate changes clearly.
</Warning>

## Best practices

**Be transparent:**

* Clearly state who pays fees in product descriptions
* Don't surprise clients at checkout
* Explain fee purpose if passing to clients

**Stay consistent:**

* Apply same fee policy across similar products
* Don't switch approaches frequently
* Document your policy

**Comply with laws:**

* Research local surcharging regulations
* Follow Stripe's requirements
* Consult legal if uncertain

**Monitor impact:**

* Track conversion rates by fee approach
* Gather client feedback
* Adjust based on data, not assumptions

## Next steps

1. [Revenue sharing](sharing-rev) - Split revenue with partners or contractors
2. [Guest checkout](/payments/guest-checkout) - Allow purchases without accounts
3. [Product Builder reference](/payments/product-builder) - Complete Product Builder guide