At Parting Pro, we use Stripe to securely process all online payments made through our platform. Like most online payment providers, Stripe charges a standard processing fee of approximately 3% per transaction.
We understand that payment processing fees can raise questions, especially if you’re new to online billing. This article will help explain:
Why this fee exists
What the fee covers
Your options for managing the fee
What to expect when setting up your Stripe account
Why Does Stripe Charge a Processing Fee?
Payment processing fees are a standard part of doing business online. Just like a utility or software subscription, they support the behind-the-scenes systems that allow money to move securely and efficiently between parties.
Stripe’s processing fee (typically 2.9% + $0.30 per transaction) covers:
Card network costs: Stripe pays fees to card issuers (like Visa and Mastercard) every time a payment is processed.
Security and fraud prevention: Stripe invests in powerful tools to protect you and your families from fraud, identity theft, and unauthorized transactions.
Platform reliability and support: Their technology ensures payments are processed quickly, disputes are handled properly, and your funds are deposited smoothly.
This fee ensures your business can accept payments online with the same confidence and reliability as major e-commerce platforms.
How Can I Manage This Fee?
You have two main options:
✅ Option 1: Absorb the Fee
This is when you pay the Stripe fee as a regular business expense. Your families will see the full price of your service, and Stripe deducts their fee before depositing funds into your account.
Example:
Your fee: $1,000
Stripe fee: $30
You receive: $970
This is the most common approach and considered standard across online industries.
✅ Option 2: Pass the Fee to the Family
You can choose to have the 3% Stripe fee added to the family’s payment, so they cover the cost instead of you.
Example:
Service price: $1,000
Family pays: $1,030
Stripe deducts $30
You still receive: $1,000
This option is available in your Parting Pro settings and can be enabled at any time.
How to Explain the Fee to Families
If you choose to pass on the Stripe fee, it’s important to communicate it clearly and thoughtfully. Here’s how to approach the conversation:
Keep it transparent: Let families know that the added fee is for secure, convenient online payment processing and goes directly to the provider (Stripe), not your business.
Use simple language: You can say something like,
"We use a trusted payment provider to ensure your online payment is safe and seamless. They charge a small processing fee to cover things like security and transaction costs. We don’t make anything from it, it’s simply part of providing a secure way to pay.”
Are There Any Ways to Avoid the Stripe Fee?
Stripe fees apply only to online card payments made through the platform.
If you’d prefer not to pay (or pass along) the fee, you can always accept offline payments instead such as checks, ACH transfers, or cash. These payment types do not incur Stripe fees, and you can still record them within Parting Pro for tracking and reporting.
What to Expect When Setting Up Stripe
To begin accepting payments, you’ll need to create and verify a Stripe account. Stripe may ask for:
Your business name, address, and bank info
Your EIN or Social Security Number
A brief description of your services
A representative’s ID information (name, DOB, etc.)
These steps help Stripe comply with financial regulations and ensure secure payouts.
Stripe setup is quick, secure, and only needs to be completed once. If you ever need help, our team is happy to assist.
Final Thoughts
Payment processing fees are a normal part of accepting payments online. Whether you choose to absorb the cost or pass it on, Stripe gives you the tools to collect payments efficiently, securely, and in a way that works best for your business.
If you have any questions about Stripe, fees, or how to manage your payment settings, feel free to reach out to your Client Success Manager.