We want to ensure you have all the information about fees for Studio payments. In this article, we'll explain which fees apply to Invoice payments and how they are handled in the case of refunds.
How Do Payments and Fees Work?
Your clients will have two options when paying an Invoice. They will always see a free payment option, which is via ACH. If your client opts to make a payment via credit card, they’ll see a 2% convenience fee added to the Invoice total (i.e. their $50 invoice becomes a $51 invoice).
No matter which method clients choose, the processing fee you would see deducted from the paid Invoice is our low 2.5% flat rate, which is less than the normal 2.9% +.30 your business is probably used to absorbing currently. 🙌
How Does This Benefit Me?
Profits are received in 2 days, regardless of how your clients pay (when you're on a paid CloudSpot plan) 💸
Because Studio’s Invoices are included in your CloudSpot plan, you are now no longer forced to pay for an additional service for invoicing (Honeybook, Dubsado, etc). Our goal is to continue making Studio better while keeping it free for photographers! 🤩
Communicating effectively with your clients is key to a positive client experience and minimizing misunderstandings. Educating your clients about their payment options sets the stage for a successful relationship!
✨ Processing Fees FAQ ✨
What fees do I pay when my clients make their invoice payments?
A transaction fee of 2.5% will be collected on each payment processed on an invoice.
What fees do my clients pay when they pay an invoice?
If your client chooses to pay via ACH payment, they will not be charged any fees.
If your client chooses to pay via credit card payment, a 2% convenience fee is added to the payment total. This fee is visible to your client in the payment portal before they process their payment, and it is also listed on their payment receipt.
Who receives the 2% credit card convenience fee?
The 2% convenience fee is collected by CloudSpot along with the 2.5% processing fee. This convenience fee helps keep our credit card processing fees one of the lowest in the industry at a flat 2.5%, and helps keep Studio free for our paid users! 🎉
If I refund a credit card payment, does my client receive the convenience fee back?
Yes, refunding a credit card payment will also return the 2% convenience fee that the client paid at checkout.
When I refund an invoice payment, is the 2.5% transaction fee refunded to me?
The transaction fee will not be refunded if you refund a payment to your client. This is because the connected payment processor still incurs a cost for handling the original transaction, regardless of the refund. You can opt to either cover this fee by issuing a full refund, or charge the fee to your client refund by issuing a partial refund.
If there is a balance available in your Stripe account, the refunded amount will be debited from that balance. If your Stripe balance is $0 at the time of the refund, your connected bank account will be debited to cover the difference.
If you have any questions or need additional help, feel free to contact us in the chat bubble in the lower right-hand corner of your dashboard. We're always happy to help!
