Convenience fee: definition, example, and why it matters
Most US states allow passing the actual card processing fee (typically 3%) to the customer. Must be disclosed before payment. Some states (CT, MA) cap or prohibit surcharges — check local law.
Short definition. A surcharge added when a customer chooses a more expensive payment method.
Category. Convenience fee is a payments term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds convenience fee into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does convenience fee mean?
Most US states allow passing the actual card processing fee (typically 3%) to the customer. Must be disclosed before payment. Some states (CT, MA) cap or prohibit surcharges — check local law.
Related terms
Card payment — A payment made by credit or debit card, processed online or in person.
Stripe — A payment processor that lets businesses accept cards, ACH, and wallets online.
