What To Know
- Honeybook charges a flat processing fee of 3% on all transactions, regardless of the payment method used.
- A scheduling and payment platform with a flat monthly fee and no processing fees.
- Can I avoid the Honeybook processing fee if I receive payments outside of the platform.
Honeybook is a popular business management software designed for creative entrepreneurs and freelancers. One of the key aspects of using Honeybook is understanding its processing fees, which are charged when you receive payments from clients.
Honeybook Processing Fee Structure
Honeybook charges a flat processing fee of 3% on all transactions, regardless of the payment method used. This fee is in addition to any fees charged by your payment processor (e.g., Stripe or PayPal).
Payment Methods and Fees
Honeybook supports multiple payment methods, each with its own processing fee:
- Credit/Debit Cards: 3% + $0.30 per transaction
- ACH (Bank Transfer): 1% + $0.30 per transaction
- Apple Pay/Google Pay: 3% + $0.30 per transaction
Calculating Processing Fees
To calculate the total processing fee for a transaction, simply follow this formula:
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Processing Fee = (Transaction Amount x 3%) + $0.30
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For example, if you receive a payment of $100, the Honeybook processing fee would be:
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Processing Fee = (100 x 3%) + $0.30 = $3.30
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Avoiding Honeybook Processing Fees
While Honeybook’s processing fees are relatively low compared to other platforms, there are a few ways to avoid them altogether:
- Offer Discounts for Bank Transfers: Some clients may be willing to pay via ACH to avoid the credit card processing fee. You can offer a discount for bank transfer payments to encourage this method.
- Use a Third-Party Payment Processor: You can integrate a third-party payment processor, such as Square or PayPal, into your Honeybook account. This may allow you to negotiate lower processing fees.
- Bundle Services: Consider bundling your services and offering a flat rate for multiple projects. This can reduce the number of transactions and thus the total processing fees.
Benefits of Using Honeybook
Despite the processing fees, Honeybook offers numerous benefits that justify its use:
- Streamlined Invoicing and Payments: Honeybook automates the invoicing and payment process, saving you time and effort.
- Client Management Tools: Honeybook provides robust client management features, including booking, scheduling, and communication tools.
- Project Management Capabilities: You can use Honeybook to manage your projects, track progress, and collaborate with team members.
- Enhanced Security: Honeybook complies with industry-leading security standards to protect your financial data and client information.
Alternatives to Honeybook
If Honeybook’s processing fees are a concern for you, consider the following alternatives:
- Dubsado: Similar to Honeybook, but with a lower processing fee of 2.5%.
- Flodesk: A CRM and email marketing platform with no processing fees.
- Acuity Scheduling: A scheduling and payment platform with a flat monthly fee and no processing fees.
FAQ
Q: Is the Honeybook processing fee negotiable?
A: No, Honeybook’s processing fee is not negotiable.
Q: Can I avoid the Honeybook processing fee if I receive payments outside of the platform?
A: Yes, but you will need to manually track and process those payments yourself.
Q: Does Honeybook offer discounts for high-volume transactions?
A: Yes, Honeybook may offer discounted processing fees for businesses with a high volume of transactions.
Q: What payment methods does Honeybook support?
A: Honeybook supports credit/debit cards, ACH (bank transfer), Apple Pay, and Google Pay.
Q: How can I calculate the total processing fee for a transaction?
A: Use the formula: Processing Fee = (Transaction Amount x 3%) + $0.
