To Charge or Not to Charge
That Is the Question
TL;DR: Credit card fees eat into your margins—but passing them on has tradeoffs. Here’s what to consider before making the switch.
Every few months, a debate flares up on social media: should you pass credit card fees to your clients—or eat the cost yourself? With platforms like Square, Stripe, and QuickBooks Payments charging 2.0–3.5% per transaction, those fees can really add up—especially during tax season or when clients want to put a large invoice on their Amex or other premium credit card. It’s a decision every business owner faces sooner or later: absorb the fee or pass it on?
Let’s take a look at the pros and cons of charging credit card processing fees, how it affects your bottom line, and what to consider before making the switch.
The Case For Charging a Fee:
Protects Your Margins
Even a 3% processing fee on a $5,000 invoice means you’re losing $150 right off the top. Passing that on to the client ensures you’re paid in full for your services.
Encourages Use of Lower-Cost Payment Methods
Some clients may opt for ACH, Zelle, or check payments to avoid the fee—saving you processing costs altogether.
It's More Common Than It Used to Be
With inflation and rising costs, more professionals—especially solo and small-firm practitioners—are openly charging fees. Many hope that this will lead to normalization.
You Can Still Offer Fee-Free Options
You’re not saying “no” to credit cards—you’re just giving clients the choice: convenience (with a fee) or savings (via ACH).
The Case Against Charging a Fee:
It Can Feel Like You Are Nickel-And-Diming
Even if your pricing is fair, adding a 3% surcharge may sour the relationship or come across as unprofessional.
Potential Legal and Card Network Issues
Visa and Mastercard have specific rules about surcharges, and some states restrict or regulate this practice. You must disclose the fee clearly, and it can’t exceed your actual cost.
Bad Optics for High-Income Clients
If you're working with higher-end clients or charging premium fees, it might seem petty to pass on a small processing charge.
Adds Friction to Getting Paid
The more steps or complications in payment (e.g., “If you want to pay with a card, you have to click here and pay an extra fee”), the more delays you might experience.
Things to Consider Before Charging a Fee:
Is it allowed in your state? Some states (like Colorado, Connecticut, and Maine) have limits or bans.
How will you disclose it? Transparency is key to avoiding client frustration.
Are there tech tools to make it seamless? Look for invoicing tools that calculate and disclose the surcharge automatically.
Will you offer alternatives? Make sure your ACH or no-fee options are easy to access.
Consider A Review of Your Pricing
Some professionals raise their rates by 3% and call it a day. It’s simpler, and no one feels nickel-and-dimed. The downside? Everyone pays the higher rate—even those who use ACH or checks.
How I Handle It:
Personally, I choose not to charge clients a credit card processing fee. That doesn’t mean I don’t wince at the statements each month—especially during the first quarter of the year. But I see it as part of doing business, just like software or education costs. I wouldn’t itemize those to my clients either.
Instead, I look at my overall cost of doing business, the services that I provide, and the value I bring to the transaction.
As a consumer, I will push back if I am met with a surcharge for paying via credit card. I may even consider taking my business elsewhere. To me, it conveys: “As a business owner, I don’t know how to set my pricing properly, so I’m passing some of my costs on to you.”
My approach is never to tell anyone how they should run their business. Instead, I prefer a conversational approach. Reasonable people can disagree. There’s no one-size-fits-all answer, but if you’re absorbing hundreds or thousands of dollars in credit card fees each year, it’s time to ask: Do I need to look at my pricing? Should I consider other options?
Just be sure to:
Check your state laws
Communicate clearly
Offer fee-free options
Keep the process simple
How are you handling credit card fees in your practice? Leave a comment—I want to hear what’s working (or not working) for you.
Whatever route you choose, make it part of a larger conversation about how you value your time—and how you want clients to value it too.
I don't pass on CC fees yet, but I've considered it. I'm in CA and use Ignition with most of my clients. In CA, Ignition allows is to pass on only CC fees capped at 3% (I think).
My insurance broker and many attorneys I know will pass on CC fees. If they can do it, I'm fairly certain I can without too much push back, and I can still accept checks if people are uncomfortable with entering their bank info in Ignition.
When we first made the decision to start accepting credit cards, we decided to simply raise our prices across the board. We get questions from clients every year about whether there is a fee to use a card. With many of them, I explain that our business pays a fee every time someone uses a card, but we don't charge a specific fee for it. Our family firm still sees the majority of our clients for in-person appointments, and we still accept checks. Probably a third of our clients pay by check, even if the check to us is the only one they write each year. We have a lot of small business clients who appreciate my explanation, and can relate it back to their own business. Some of them choose to pass the fee on to their customer and some choose not to. Like you, I'm not going to tell anyone how to run their business, but conversations about business practices and the pros and cons of controversial choices are important to have, and are part of what my clients appreciate about our service.