Jeff Nauman

Merchants May be Able to Recoup High Costs from Convenience Fees

Using a Convenience Fee to Offset Credit Card Fees

Credit card processing fees can really add up over the course of the months and year. Instant Accept provides a method for merchants to pass some of those fees along to their customers. This method is known as charging convenience fees.

Convenience Fees with QuickBooks and Instant AcceptGetting reward points or cashback is a huge incentive for consumers to use their credit cards for purchases that they could otherwise pay cash for. According to the U.S. Consumer Financial Protection Bureau’s 2018 Consumer Credit Card Market Report, credit card spending using rewards cards has continued to grow in the last few years. The growth has been across all categories of consumers. At the time of this report, consumers tapped into rewards cards for more than 80 percent of their credit card purchases. Somebody has to pay for those rewards as the costs of these perks are passed along to the merchants accepting the credit card payments.

A merchant can consider charging convenience fees or a surcharge. A convenience fee is different than a surcharge, one significant difference is that a surcharge can be applied on credit cards but not on debit cards. Instant Accept will be able to support surcharging within the next few weeks. However, at this time, we will look at convenience fees and how a merchant might apply them.

When can Convenience be Applied

A Convenience Fee can only be charged when the purchaser is using an alternative (non-standard) payment method. Let me share an example. would be that the merchant normally takes payments in person, but a convenience fee could be charged if they are receiving the payment via the phone or online.

Credit card companies have rules regarding the ability to charge convenience fees. I will touch on a couple of them here. Check directly with your processor to make sure all the guidelines are followed.

A few of Visa’s rules include:

  • Convenience fee can only be charged online
  • Convenience fee must be disclosed from the beginning and an alternative payment method must be available
  • Cannot be charged on recurring transactions

Mastercard, American Express, and Discover all have their own set of rules as well. Please consult with your credit card provider to get a complete set of guidelines. Here is an excellent blog on Merchant Maverik by Hsin-Wei Luang.

Convenience Fee in Instant Accept & QuickBooks (The Big Promise)

In setting up your QuickBooks® convenience fees that comes in through Instant Accept, first set it up in QuickBooks®. This can be done by the following steps.

  1. creating an income account called Convenience Fee
  2. Create a product called Convenience Fee that links to that income account

Be sure to provide a message offering an alternative payment method such as ACH. Check with your accountant in regard to how they would like to see convenience fees setup for your business.

In Instant Accept, we have a tab under our Hierarchy category which makes it easy to set up a convenience fee that is fairly simple.



As you can see in the screenshot above, a convenience fee can be set up as a percentage, flat fee, or a combination of the two. A threshold amount of when to start charging the fee can also be setup.

Convenience Fees in Action

To see a short demonstration on how the convenience fees works within Instant Accept and our real-time synchronization into QuickBooks® please see our convenience fee demo video. For more information on Instant Accept and to learn more about our feature-rich integration with QuickBooks® please Contact Us or call (855) 220-2840.

Creating Invoices For QuickBooks From Within Instant Accept

Creating Invoices and Updating QuickBooks®

Create and Update Invoices in InstantAcceptInstant Accept is a software application that allows QuickBooks® users to use credit card processing services outside of QuickBooks® Payments. Instant Accept has a secure integration with QuickBooks® Online, Desktop Financials, and Point of Sale versions. In addition to saving merchants money on their processing fees, Instant Accept has numerous other features. One of these features is creating invoices and updating existing invoices.

Many businesses have salespeople and outside service people that take orders and payments remotely. These new orders and payments then need to be manually entered into the business’s QuickBooks® accounting package. This can be time-consuming and increases the possibility of entry errors.

Instant Accept offers a solution to this problem. With Instant Accept new invoices can be created, existing invoices can be updated and payments accepted all outside of QuickBooks®. QuickBooks® is then updated in real-time through InstantAccept’s secure real-time synchronization.

Increase Profitability

This solution can help a business increase profitability in several ways. First, the business does not need to pay for additional users, saving money on monthly or annual fees. Second, the business can protect their sensitive data from employees that do not need access to certain areas within their QuickBooks®. Finally, the business’s outside salespeople become much more efficient. As a result, salespeople are able to close the sale and get paid right on the spot. Greatly reducing the chance of delayed payments or the buyer changing their mind. For a short demo on this capability check out our Creating an Updating Invoices video.

All types of businesses that make sales outside their brick and mortar location can benefit from Instant Accept’s creating invoices feature. First of all, businesses with outside sales and service people. Also, businesses that make sales at trade shows, swap meets, fairs, kiosks, etc. If they are using QuickBooks® Online or Desktop Financials at the office this offers a low-cost Point of Sale solutions and many other benefits.

Instant Accept has many other features and benefits including accepting ACH payments, setting up recurring payments, stored customer profiles, batch emailing of invoices, EMV/PIN debit acceptance, and much more.

For more information on Instant Accept visit our website at or click the button below to sign up for a free trial. You can also feel free to call us at 855-220-2840.