Overview
In this article, we'll cover frequently asked questions about Fergus Pay:
Q- What are the Processing Fees?
Each transaction completed with Fergus Pay includes processing fees that vary depending on your region. We regularly review our fees to align with the current market rates.
Payment Method | New Zealand | Australia | United Kingdom* |
Credit & Debit Cards (Visa, Mastercard) | 2.95% + $0.30 | 1.95% + $0.30 | 1.6% + £0.20 |
5% + $0.40 | 5% + $0.40 | 5% + £0.25 | |
3.95% + $0.30 | 3.75% + $0.30 | 3.45% + £0.20 |
The fees are calculated as a percentage of the total invoice amount plus a fixed amount. For example, a $100 invoice in New Zealand would incur fees of $2.95 plus $0.30 for a total of $3.25 ($103.25). In Australia and New Zealand, the fees can be either absorbed by your business or passed on to the end customer.
*The United Kingdom has legislation that states you cannot pass on the fee to your end customer and must absorb the processing fee.
Q- What are the different ways you can manage the Processing Fees?
In New Zealand and Australia, you can manage your fees in two different ways. In the United Kingdom, you cannot pass the fee to your end customer, and you must cover the processing fee.
You can choose to cover the fee and not pass it on to the customer. Our data indicates that customers are 2.5 times more likely to pay by credit card when the fee is covered. You can choose to increase your margins to offset the processing fees. Your customer will see that the invoice total amount and the credit card payment amount is the same. When the invoice is paid with a credit card then the fees will be subtracted from the final amount that will be paid out.
You can choose to pass the fee on to the customer. Your customer will see that the invoice total amount and the credit card payment amount are different as this has the fees added. When the invoice is paid with a credit card then the fees will be subtracted from the credit card payment amount and you will be paid out the invoice total amount.
Please note: The options to add the processing fee as a separate line item on your invoice, or to only pass the fee on above a set invoice threshold, are no longer available for new Fergus Pay setups.
If you are already using these settings, they will continue to function as they do today.
Q- What are the benefits of covering the fees on the invoice?
Faster payments: Receive payments in just 1-4 days, compared to the typical 14 days!
No mismatches: The invoice amount will match the payment amount perfectly.
Less follow-up required: Customers are 2.5 times more likely to pay immediately if you cover the fee instead of passing it on to them.
Q- What are the Payment Limits?
Fergus Pay has transaction limits that vary depending on your region. These limits are designed to protect your business and reduce potential losses from fraudulent activity. For details specific to your account or region, please contact our support team.
Q- Can my customer still pay by bank transaction?
You can enable or disable Fergus Pay at the invoice level using the Online Payments toggle on the invoice page. When online payments are disabled, only the bank account details will be shown.
Q- Is it possible for my customers to pay their invoice using an American Express card?
Yes, Fergus Pay is powered by Stripe, which accepts American Express cards when paying an invoice.
Q- How long does it take to receive a payout?
Payments typically take 1 to 4 business days to be received. However, the first payout for every new Stripe account is typically paid out 7 days after the first successful payment is received. This waiting period can be up to 14 days for businesses in certain industries. Learn more
Q- How do I find which invoices are included in my batch payments for reconciliation?
Payments will be synced to your accounting package as a transaction that you will need to reconcile against the corresponding invoice. To view payment details:
Go to Settings > Payments to see transactions and payouts
Use the Fergus Pay Report for a detailed breakdown of batch payments
When you receive credit card payments in your bank account, they will show as deposits from Fergus.com. A single deposit may contain a payout for multiple invoices. The quickest way to reconcile this deposit against your invoices is to consult the Fergus Pay dashboard and click on the Payouts tab, which can be found in the Settings menu under Payments.
Click View Details for any payout, and you will see a breakdown of which invoices this deposit covers. You can use this information to reconcile against your invoices, as usual, in your connected accounting package.
Q- How do I process the payments in my accounting package if I have covered the service fee?
Since the payment will be less than the service fee, you will need to assign the payment to the invoice and then assign the outstanding remainder to an account code for transaction fees.
For more detailed information on how to do this in Xero, click here.
For more detailed information on how to do this in MYOB, click here.
For more detailed information on how to do this in QuickBooks, click here.
Q- Why was the surcharge fee deducted from the payment even though it was set up to be passed on to the customer?
If you decide to pass the surcharge onto your customers, be aware that it will only apply to new and unapproved invoices. For invoices generated prior to the implementation of Fergus Pay, the surcharge fee will automatically be deducted from the payment. To effectively pass this surcharge fee on to your customers, you must manually adjust the payment terms on the invoice page.
Q- Is there still a PDF file attached to the invoice emails?
By default, if Fergus Pay has been activated, the invoice PDF will not be attached to the email, which has a few advantages.
Removing the PDF attachment and adding a button lets us track whether your customers have viewed the invoice or just opened the email. (This information will be available for you under Invoicing Tools in the Job Card)
By removing the PDF as an option, we can direct your customers straight to the payment portal. This makes it easy for your customers to pay the moment they view the invoice and removes some of the "barriers to entry." With this method, you are more likely to be paid on the day of invoicing.
Finally, this method is more secure. Invoices are much harder to alter when presented this way.
Please note: If you wish to send the invoice as a PDF attachment when billing your clients, please email support@fergus.com and request that PDF invoices be activated in your account.
Q- Can I use my existing Stripe account?
It depends on your account type. We use Stripe Connected Express accounts. If you already have this type of account, enter your email during signup, and we'll connect it automatically. If you have a different Stripe account type, you'll need to complete the standard onboarding process.
Thank you for taking the time to read our Article. If you have any questions, please get in touch via support@fergus.com