A convenience fee is a charge that merchants apply to non-standard payment methods, such as e-payments or credit card purchases. In other words, merchants offer clients more comfort and speed when paying for goods or services, but charge an extra fee. The fee is typically a fixed amount or a fixed percentage of the total transaction and must be disclosed to the consumer before making the purchase.
Why are Convenience Fees Important for Merchants and Consumers?
Convenience fees are important for both merchants and consumers because they help to offset the costs of processing certain payment methods. For merchants, convenience fees help to cover the additional costs associated with card-not-present transactions. The more convenient it is to purchase, the more likely consumers are to pay, which might boost sales volume and profit.
Example of a Convenience Fee
Suppose you want to buy a Santa hat for Christmas and want to pay by credit card over the phone. The merchant might charge an additional three percent of the total transaction fee to you to cover the additional cost. You're ecstatic because you've been given the option of paying with your preferred payment option, but paid an extra (convenience) fee for the alternative payment method.
* Merchants should always be transparent about convenience fees and ensure that their customers understand why they're being charged the fee.
Merchant Account Services at Intergiro
Merchant account services at Intergiro are designed to help businesses accept payments quickly and easily. Our merchant account services are fast, reliable, and secure, and we offer low rates and no hidden fees. This is a unique offering as you can have your business account and merchant account in one place. You'll get all the support and advice you need to take payments quickly and efficiently without any hassle.