Credit card fees and charges
InvestorKit has implemented new credit card fees for client transactions. This change reflects our commitment to maintaining sustainable business practices while ensuring transparent financial operations. This article outlines everything you need to know about our updated fee structure, including alternative payment methods and frequently asked questions.
For your convenience, we've provided detailed information about the changes, implementation dates, and answers to common queries. If you have specific concerns, our team is here to assist you.
Credit Card Transaction Fee
Overview
InvestorKit uses Stripe as our secure payment platform to process credit card payments. Stripe applies a transaction fee directly to the client — this fee is not controlled by InvestorKit, nor do we profit from it. It is simply the cost of offering a credit card payment option for convenience.
Stripe Credit Card Fee Breakdown
- Local Cards (Australian-issued):
- 1.70% + $0.30 per transaction
- International Cards:
- 3.50% + $0.30 per transaction
These fees are standard and charged by Stripe as the payment provider. We cannot waive or adjust them.
Key Points for Client Communication
When discussing credit card fees with clients, the following talking points should be used to maintain clarity, professionalism, and empathy:
1. The Fee Origin
- The credit card fee is charged by Stripe, not InvestorKit.
- InvestorKit receives no profit from these fees.
2. Comparison to Everyday Spending
- This is similar to the 1% or more surcharges commonly seen in local retail shops.
- Many people pay hundreds in small card fees over the course of a year without realising it, because it’s spread out.
3. Why the Fee Feels Large
- While credit card fees may seem significant when paid in one lump sum, they are the result of a percentage-based fee on the full transaction amount.
- For example, on a $10,000 invoice, the Stripe fee for an Australian card would be approx. $175 — a relatively small cost to complete the transaction securely and promptly.
4. Optional Payment Methods
- Most clients opt for bank transfer or direct debit to avoid card fees.
- Credit card payment is offered purely as a convenience for those who prefer it.
- Like any credit facility, it comes with fees — both from the provider (Stripe) and potentially the client’s issuing bank.
Client Credit Card Transaction Fee Policy Update
Overview
As part of a change to our billing procedures, InvestorKit clients will now be responsible for covering their own credit card transaction fees. Previously, these fees were absorbed by InvestorKit.
New Policy Details
- Effective Date: Friday, 12 July 2024
- Policy Change: Clients will now pay credit card transaction fees directly.
- Reason for Change:
- To align with standard industry practices.
- To support the long-term sustainability of our services amid increasing transaction volumes.
Key Points for Client Communication
This change does not need to be proactively communicated to clients. They will be made aware of the fees when they proceed to make a payment via credit card.
However, if a client raises a query, please be prepared to address it using the following points:
- Why the Change?
The decision was made to align with industry standards and ensure continued service sustainability.
- Fee Details:
Transaction fees vary based on the client’s credit card type and issuing bank.
- Alternative Payment Methods:
Recommend bank transfers or direct debits to avoid credit card fees.
- Impact on Transactions:
This applies to all future credit card transactions from the effective date onwards.
- Handling Queries:
Address client concerns respectfully and case-by-case. If needed, refer the client to our accounts team for further clarification.