Advice adding the credit card service fee to invoices

 Hi, I’m Joel, and I run a sprinkler company.

I recently contacted Jobber’s customer support team to request the integration of a 3% convenience fee for credit card payments. They said some states don’t allow it, but I don’t think that’s true where I live.

For example, my friend runs an HVAC company, and their invoicing software automatically adds the credit card fee when customers choose that payment method. I’ll ask for the name of their software as a comparison.

Also, businesses in my area, including the city government, charge this fee. I recently paid my property taxes with a credit card and was charged a 3% convenience fee, so I don’t see how this could be illegal here.

This feature would really help. This was my first year using Jobber, and managing this manually during our busy fall season was overwhelming. With four technicians doing 10 blowouts a day (40 invoices daily), I couldn’t keep up. Blowout costs vary, so I had to calculate the 3% fee manually. Eventually, I gave up and just absorbed the fee, which hurt our bottom line.

We’re already paying Jobber fees for using their payment system, plus the 3% credit card fee. That adds up. Adding this feature would save time and money while making invoicing more efficient.

I hope Jobber considers adding it soon!

We’ve covered these fees for years in our mark-up on each and every project.

I'm struggling with this as well. We have been adding it into the cost for the most part, and if it is a really large job, we ask them to mail a check. This can delay work and is problematic. I like your idea about a cash discount, that could work.

Good morning. We ran into this issue immediately after starting Jobber. We are a GC and we Remodel everything for Residential and Commercial. What we do is put all of our quotes as OPTIONAL and make 3 OPTIONS.  CASH/CHECK OPTION, CREDIT OPTION, AND FINANCING OPTION. We then Recommend the Cash/Check option so that gets sent out highlighted but also does not get sent with the financing options in the body of the email or text quote. 

Boom! Your welcome!

But I agree, Jobber needs to integrate something where you can put a percentage, and it automatically inputs these options instead of us having to make 3 copies.  

Rick- El Toro General Contractors Inc.  

We add a line item to our quotes/invoices for the 2ish% surcharge (manually calculate it then enter it onto that line item). During our quoting process this line item is explained to our customers and sometimes they'll decide up front that they're paying with checks. Otherwise the description explains if they pay online the surcharge is due but it can be avoided by paying with cash/checks. Most of the times our customers will mail a check in for the total less the surcharge, in which case we edit the invoice to remove the surcharge then process their payment. Other times, customers will tell us they'll pay with check and ask us to resend the invoice excluding that charge. 

What we do is work a 3% fee in all estimates and hourly and if the client pays with Credit well it’s covered, But if they don’t it’s a bonus 😜

Thanks, everyone, for your advice!

cpa1and Rick25 y'all's strategy is what we ended up implementing. We're adding it as an optional, but pre-selected line item with a description as to what it is and how to avoid it. That way they have to take action in order to remove it, which would give me confidence that they read and understood payment options.

I also added a clause in our addendum describing the surcharge process, adding that if they exclude the line item but pay with a credit card anyway upon invoicing, we'll send them an additional invoice for the surcharge. Not that everyone reads their addendum....

So I also added reminders about this in the auto emails for new quotes, quote approvals, booking confirmations, and invoices. Hopefully that does the trick!

I’ve used a lot of CRMs and have been really impressed with Jobber so far, but I’d love to see this option added. This work-around meets most of our goals, but I do have to overcommunicate with clients to make sure they understand the surcharge item on their invoices, which can be a bit much. Plus, it makes the upfront cost on their estimate look unnecessarily inflated which can make for an offputting first impression when competing for bids. 

Again, thanks for the thoughts!

I own a mobile RV repair and maintenance company and have been absorbing the CC fee as part of doing business.  At the end of the year, it's a big pill to swallow when you collect all the information for tax purposes and see this figure.  Some of my distributors are now charging 3+% when I order parts and supplies.  For those of you who currently charge a CC convenience fee, have you had any negative feedback from your clients?

We have recently started using Jobber and were using Quickbooks online for invoicing before this. We were absorbing the 3% charge on smaller invoices but turning the online payment option off for bigger invoices - usually over $1500. Being able to turn off the ability for customers to pay through the client hub on certain invoices would give us more control over which invoices we are absorbing the cost on.

Given how well Jobber works, it being able to add on a 3% charge automatically when customers pay online seems like a feasible work around?

You’ve touched on an important issue that most us face. Balancing customer convenience, revenue protection, and administrative efficiency can be challenging, but there are strategies to address this. Here are some suggestions for each aspect of your question:

1. General Approach to Credit Card Fees

• Transparency: It’s great that you’re focused on being upfront with clients. Transparency helps build trust. Always clearly state any potential fees on your estimates, invoices, or contracts so clients are aware of their payment options and associated costs from the start.
• Legal Compliance: While it’s legal in Colorado and many states to pass on credit card fees, ensure your approach complies with any card network rules (e.g., Visa or Mastercard). These often require explicit disclosure of the fees.

2. Strategies for Handling Fees

Option A: Absorb the Cost as Overhead

• Many businesses choose to absorb credit card fees as a standard operating expense and factor it into their overall pricing. While this may slightly increase your costs, it simplifies transactions for clients and eliminates the risk of administrative hiccups.  This is what we do at Griffin Waste Utah.
• Pros: Simplifies billing, improves customer satisfaction, and makes you more competitive in markets where clients compare bids.  Customers never feel like you "nickel and dime" them, if it is just $**bleep**.XX dollars.  It appears there are no games.  Let your competitors offer the more confusing (to the client) options, which complicate the billing.
• Cons: You bear the costs directly, which can eat into your margins if not carefully managed.  With Jobber, it is a known fee, so it easy to manage.

Option B: Offer a “Cash Discount”

• Rather than explicitly charging a fee for credit card payments, you can offer a small discount (e.g., 2-3%) for clients who pay by cash, check, or bank transfer. Frame it as an incentive rather than a penalty for credit card use.  You mention this, and it is way to save the fees.  But as a company that works mostly for individual clients (you said you were a tree-servicing business) I'd say making it simple is best.  One price.
• Pros: Positive framing can improve client perception and encourage cheaper payment methods.
• Cons: Discounts may reduce your revenue slightly, though likely less than absorbing all card fees.

Option C: Directly Pass on the Fee

• If you prefer to pass credit card fees to clients, clearly state that a service fee will be added for credit card payments. For example: “A 2.5% processing fee will be applied to all credit card payments.”
• Implementation Tip: Jobber supports automatic fee calculations to avoid manual adjustments. 
• Pros: Protects your margins.
• Cons: Risk of pushback from clients who dislike additional fees.  Some clients will see this as "being cheap."

3. Streamlining Payment Processes

• Avoid Administrative Messes: To prevent the refund/reinvoice issue you mentioned, consider including multiple payment options in your invoices with clear terms. For example:
  • “This invoice reflects a 2.5% service fee for credit card payments. Clients paying by debit, check, or ACH transfer are eligible for a fee waiver.”
• Payment Portals: Jobber let clients select their payment method before completing a transaction, automatically adjusting fees accordingly. 
• Educate Clients: During the initial client onboarding or estimate phase, communicate payment options and associated costs. This reduces surprises and builds understanding.  But, I fear it causes misunderstandings when it comes time to collect payment.

4. Practical Tips to Keep in Mind

• Competitive Positioning: Assess whether your local competitors charge similar fees. If most absorb credit card costs, passing fees to clients could make your bids less competitive.
• Customer-Centric Options: If a client is unhappy about the fee, consider absorbing it in specific cases to maintain goodwill, especially for high-value or repeat customers.
• Tracking Fees: Track how much you’re spending annually on credit card fees and compare it to the cost of offering a cash discount or higher pricing overall.

Closing Thought: The right approach will depend on your client base and business goals. Whichever strategy you choose, consistency and clear communication are key. It’s also worth testing different approaches (e.g., absorbing fees for a quarter vs. passing them on) to see what works best for your business. Good luck streamlining your process and protecting your margins!  My business is different from yours--I rent dumpsters, you manage trees.  I don't know how different our customers are, but we've chosen to absorb the fees, and make payment simple, straightforward, and with no surprises.  For us, it is the right way.  For you, well, you seem to understand these issues, it is just a matter of choosing which works best for your clients (not for you!). Your business, and mine, are both here to help our clients!