About Transaction Fees
Billing is an important piece of the Coworks platform. Coworks will automatically generate invoices and bill your customers on a recurring basis to collect revenue.
Learn more about auto-drafting payments here.
Each transaction incurs a transaction fee (from Stripe) that Coworks allows you to pass on to your members (see here).
Passing the right fee requires us to know how the member is going to pay (ie via credit card or bank). This is done by setting the default payment method for the member prior to the invoice being generated.
However, what happens if there is no default payment method? In this case, the invoice is emailed to the user and they're able to pay via a link in the email. At this point it is unclear how the customer intends to pay (credit card, bank, check, etc.) before the invoice is sent. We only know how they paid after the payment is sent.
This is why we've added the ability for you to set the default behavior of how emailed invoices should act.
Changing the transaction fee settings
To change your transaction fee settings, go to the "Community" tab in the lefthand sidebar of your Coworks dashboard. Under the top level "Settings" tab, you should see a section for "Billing" on the left side. Navigate there directly using this link.
There is a dropdown labeled "Fee Behavior When No Default Source". Here, you can choose whether to pass transaction fees by default for emailed invoices. Your options for what types of fees to pass (bank account or credit card fees) will be determined by the two toggles above the dropdown.
How to set transaction fee behavior for emailed invoices This setting is only for automatically generated invoices and NOT one-off manually created invoices (you will have the option to pass fees or not at the time of invoice creation for those).
Passing fees by default will ensure that all emailed recurring invoices are appended with transaction fees regardless of the default source on file. Otherwise, emailed invoices will NOT include transaction fees when generated automatically.
Paying via check/cash
Scenario: What if you have a few members who pay you by check or by cash who should not be paying transaction fees?
For this scenario, you can go to the individual team and override the transaction fee settings to ensure that transaction fees aren't added. This will ignore your community transaction fee settings for that specific customer. You can learn how to set that up here.
Happy Coworking!