"And I knew this was bound to happen, but a new client called to say that he needed to be able to pay
by credit card, which I, of course, had disabled. Ignition definitely won’t work for me if I’m going to get
hit with CC fees. Thankfully my Ignition rep gave me a super detailed workflow about how to handle it
in Ignition if someone requests to be able to pay by CC, but it is definitely more work. I also asked me
rep for wisdom and guidance about how other firms tackled the processing fee issue and actually had
a great email exchange about this more “philosophical issue”. How do you handle this issue, reader?
Do you worry about processing fees? Have your thoughts on it changed in the course of your
business? Comment below on the newsletter."
A: For a few small businesses, I work as a freelance OBM, although invoicing is free, credit card payments cost 3% per payment. By adding the 3% to all my prices through markup, I can circumvent this charge discretely. Suppose I need $35 per hour to perform collections for a small business, then my price sheet will show $36.50 (after rounding). Markups are calculated on all my up-front (flat) pricing and updated annually.
A 3% markup on $35 is calculated as follows: 35 ÷ 0.97 = $36.08
In order to calculate a different percentage than 3%, like 8%, you would subtract 8 from 100 (100 - 8 = 92) and move the decimal point over. It would be .92 in this instance - I hope this was helpful to you or others.
"And I knew this was bound to happen, but a new client called to say that he needed to be able to pay
by credit card, which I, of course, had disabled. Ignition definitely won’t work for me if I’m going to get
hit with CC fees. Thankfully my Ignition rep gave me a super detailed workflow about how to handle it
in Ignition if someone requests to be able to pay by CC, but it is definitely more work. I also asked me
rep for wisdom and guidance about how other firms tackled the processing fee issue and actually had
a great email exchange about this more “philosophical issue”. How do you handle this issue, reader?
Do you worry about processing fees? Have your thoughts on it changed in the course of your
business? Comment below on the newsletter."
A: For a few small businesses, I work as a freelance OBM, although invoicing is free, credit card payments cost 3% per payment. By adding the 3% to all my prices through markup, I can circumvent this charge discretely. Suppose I need $35 per hour to perform collections for a small business, then my price sheet will show $36.50 (after rounding). Markups are calculated on all my up-front (flat) pricing and updated annually.
A 3% markup on $35 is calculated as follows: 35 ÷ 0.97 = $36.08
In order to calculate a different percentage than 3%, like 8%, you would subtract 8 from 100 (100 - 8 = 92) and move the decimal point over. It would be .92 in this instance - I hope this was helpful to you or others.