Which payment method has lower fees?
The fees are comparable, but let's break them down:
Stripe Standard Fees:
Domestic cards: 2.9% + $0.30
International cards: 3.9% + $0.30
Additional 1% for currency conversion
PayPal Invoice Fees:
Domestic: 2.99% + $0.49
International: Additional 1.5%
Currency conversion fees vary
Example: On a $500 invoice
Stripe fee: $14.80 (you receive $485.20)
PayPal fee: $15.44 (you receive $484.56)
The difference is minimal. Choose based on client preference and convenience rather than fee differences.
How do I pass processing fees to my clients?
Both Stripe and PayPal allow you to transfer processing fees to your clients:
In Invoizar:
1. Go to Settings > Payment Options
2. Enable Client Covers Processing Fees
3. Choose your fee calculation method:
Distribute: Spreads the fee across all invoice line items proportionally
Surcharge: Adds the fee as a separate line item at the bottom
The fees are automatically calculated based on the payment method your client chooses. Your clients will see the adjusted total before they pay.
Note: Some states and countries have regulations about surcharging. Check your local laws before enabling this feature.
How do I issue a refund?
You can process refunds through either the payment processor's dashboard or sometimes through Invoizar.
Through Stripe:
1. Log into your Stripe dashboard at dashboard.stripe.com
2. Go to Payments
3. Find the transaction to refund
4. Click Refund
5. Enter full or partial refund amount
6. Confirm the refund
Through PayPal:
1. Log into PayPal at paypal.com
2. Go to Activity
3. Find and click the transaction
4. Click Issue Refund
5. Enter the refund amount
6. Select reason for refund
7. Click Issue Refund
Refund Timeline: Clients typically receive refunds within 5-10 business days, depending on their bank's processing time.
Are there fees for refunds?
Stripe: You forfeit the processing fee when issuing refunds. The $0.30 fixed fee is not refunded to you, but the percentage fee is returned.
Example: $100 payment had $3.20 fee. You refund $100. Stripe returns $2.90 to you, keeps $0.30.
PayPal: The percentage fee is refunded, but the fixed fee is not.
Example: $100 payment had $3.49 fee. You refund $100. PayPal returns $2.99 to you, keeps $0.49.
Partial Refunds: Fees are proportionally returned based on the refund amount.