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Convenience Fees

Charge a Percentage-Based Fee on Online Payments to Offset Processing Costs

Written by Ashley Owens

INTRODUCTION

Feature Summary: Convenience fees allow your organization to charge a percentage-based fee on the total transaction amount for specific types of non-card-present payments - such as online bookings and registrations paid with a card on file or manually entered card details.

Use Cases:

  • Offset online payment processing costs by passing a percentage-based fee to members

  • Track convenience fee income separately using a dedicated revenue category

  • Give members full transparency on fees before they confirm payment

Example:


OVERVIEW

Convenience fees apply only to non-card-present transactions - meaning payments made online without physically swiping or inserting a card. They do not apply to in-person or manually processed payments.

Before enabling this feature, review the following:

  • Convenience fees are not permitted in all jurisdictions. You are responsible for verifying compliance with your local and/or state/provincial regulations before enabling this feature.

  • It is recommended that you provide members with at least 30 days' advance notice before convenience fees take effect. Check your local guidelines for how and where this notice must be posted.

Excluded Transaction Types

Convenience fees do not apply to the following payment methods:

  • Credit Card Swipe/Manual

  • eCheck

  • Pre-Authorized Debit

  • Cash

  • Manual CC

  • Check

  • Account Credit


NAVIGATION

To enable convenience fees, navigate to Settings > Billing Settings > Integrated Payments and follow the instructions below.


SETTINGS

Enabling and Configuring Convenience Fees

Enable Convenience Fee - Check this box to turn on convenience fees for your organization.

Disclosure - When enabled, a disclosure notice appears confirming that convenience fees may only be applied to purchases made online in the member portal or using a card on file - not to card-present transactions (Chip/Swipe/Tap). You must check Check to agree to above disclosure before the remaining configuration fields become available.

Note: By law, convenience fees may not be applied to transactions using a card-present terminal for payment (Chip/Swipe/Tap).

Apply Convenience Fee Only When Paying an Invoice - Check this box to restrict convenience fees to invoice payments only. When unchecked, the fee applies to all eligible online transactions.

Convenience Fee % - Enter the percentage to charge as a convenience fee.

Note: Convenience fees cannot exceed 4% of the transaction total. Lower caps may apply in certain jurisdictions.

Convenience Fee Revenue Category - Select the revenue category where convenience fee income will be recorded. If your club uses Revenue Categories, you can direct fees to a dedicated category for financial reporting purposes.

For example: Selecting "Convenience Fees" as the revenue category lets you track this income separately from court reservations, event registrations, or membership dues.


Important Notes: Convenience Fee Rules and Limitations

  • Maximum fee percentage - A convenience fee cannot exceed 4% of the transaction total. Lower caps may apply in certain jurisdictions.

  • Recurring transactions - Convenience fees may not apply to recurring transactions, depending on your jurisdiction and the card type used.

  • In-person transactions - Convenience fees cannot be applied to in-person transactions.

  • Bona fide convenience - Convenience fees should only be charged when you are providing a genuine convenience to the member, such as the ability to pay online rather than in person.

  • Fee calculation - Convenience fees are calculated on the full transaction total, including sales tax.

For example: A member books a court for $10.00. With a 6.5% sales tax, the taxable total is $10.65. If your convenience fee is 3%, the fee charged is $0.32, bringing the member's total to $10.97.


ADMIN PERSPECTIVE

How Convenience Fees Appear on a Member's Account

Convenience fees are posted as a separate line item on the member's account, displayed alongside the base transaction fee and total payment.

For example: A member pays for a court reservation online. Their account ledger under their member profile - Billing tab shows:

  • Fee: Court Reservation - $30.00

  • Fee: Convenience Fee (3%) - $0.90

  • Payment: Total Paid - $30.90

Reversals

If you revert a payment that included a convenience fee, the convenience fee is voided automatically and removed from the transaction list.

Refunds

Convenience fees are listed as a separate line item on the Refund Links screen. Admins can optionally select the convenience fee line item independently and choose where to refund it.

For example: A member paid $30.00 for an event registration and a $0.90 convenience fee. On the Refund Links screen, both charges appear as separate line items Admins can refund the convenience fee independently, the registration fee independently, or both.


USER PERSPECTIVE

When a member checks out online using a saved card or by entering card details manually, CourtReserve displays a notice informing them that a convenience fee will be applied, along with the exact fee amount, before they confirm payment.

For example: A member books a court reservation and selects their card on file. Before completing checkout, they see a notice that a $0.32 convenience fee (3%) will be added, bringing their total to $10.97.

The transaction receipt also displays the convenience fee as a separate line item so members have a clear record of what they were charged.

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