How Payment Processing Fees Are Calculated

This article explains when payment processing fees apply and how they're calculated based on your account settings (0%, 1%, or 2.6%). You'll also see real-world examples using a $100 transaction to help you understand exactly how payouts are determined. For more information on how to customize these fees, please click here.

When Are Payment Processing Fees Applied?

Payment processing fees apply to the follow types of transactions:

• Card Payment transactions, including:
  • Deposits
  • Online payments
  • Tap to Pay
  • Card Reader payments
• Buy Now, Pay Later (BNPL) transactions

Note: The payout balance shown in the Dashboard reflects your total card payments after processing fees have been applied.

How Payment Processing Fees Are Calculated:

Payment processing fees apply to all types of transactions. GlossGenius payment processing fee rates are calculated differently between card transactions and Buy Now, Pay Later (BNPL) transactions.

Payment Processing Fees for Card Transactions:

• For card payments, GlossGenius allows you to choose from three processing fee options. You can learn about customizing your payment processing fee here: How to Customize the Payment Processing Fee
• Here's a breakdown of how each one affects what your client pays and what you receive in your payout:

If the Processing Fee is Set to 0%:

When set to 0%, the client will be charged a 3.5% convenience fee at checkout. This fee is visible to them before completing the transaction.

How your payout is calculated:
(Total charged to the client) – (3.5% client fee) = Your payout

Example:
For a $100 service, the client pays $103.50. You receive $100 in your payout, and the $3.50 goes to the payment processor.

If the Processing Fee is Set to 1%:

When set to 1%, the client will be charged a 2.5% convenience fee at checkout, and an additional 1% will be taken from the service total as your processing fee after the transaction.

How your payout is calculated:
(Total charged to the client) – (2.5% client fee + 1% provider fee) = Your payout

Example:
For a $100 service, the client pays $102.50.

• The client fee is $2.50 (2.5% of $100)
• Your 1% fee is $1.00 (1% of $100)
• Your payout is $102.50 – ($2.50 + $1.00) = $99.00

If the Processing Fee is Set to 2.6%:

When set to 2.6%, the full 2.6% fee is taken from the total after the transaction is completed. The client is not charged an additional fee at checkout.

How your payout is calculated:
(Total charged to the client) – (2.6% processing fee) = Your payout

Example:
For a $100 service, your payout would be $100 – $2.60 = $97.40

Payment Processing Fees for BNPL Transactions:

• The processing rate for BNPL transactions is 6% + 30¢ per transaction. 
• This rate is fixed and cannot be passed on to clients like our standard processing rate.
• This higher rate reflects the cost of working with providers like Afterpay, Affirm, and Klarna — who take on the full financial risk of client repayments while you get paid upfront.

How your payout is calculated:
(Total charged to the client) – (6% + 30¢ processing fee) = Your payout

Example:
For a $100 service, your payout would be $100 – $6.30 = $93.70

Note: BNPL is an optional feature designed to help you increase sales by giving clients more flexibility to pay over time. At any time, you can adjust BNPL as an available payment method in your settings. You can learn more about offering BNPL to clients here: How to Use Buy Now, Pay Later (BNPL) Payment Methods