Summary
If you're looking to offset payment processing costs, there are two main ways to pass service fees onto your members: by adjusting membership pricing or by applying a tax.
This guide walks you through both options, including how to set up a tax in your dashboard with step-by-step instructions.
Two Options for Passing Fees to Your Members
Option 1: Include the Fee in Your Membership Price
The first and simplest option is to build the service fee directly into your membership pricing.
For example, if your original membership fee is $100 and your processing fee is 3%, you would update your membership price to $103. This way, the cost is covered without any visible additional charges to your members.
Pros:
Simple to implement
Seamless user experience (no extra line items)
Cons:
Less transparent—members may not realize why the cost is slightly higher
Option 2: Add a Tax to Cover the Fees
Another option is to add a custom tax to your membership pricing. This tax passes the service fee directly onto the member and is clearly visible at checkout.
Pros:
Transparent: Members see exactly what the service fee is for
Keeps base membership pricing consistent
Easy to adjust or remove later if needed
Cons:
Adds a line item at checkout, which may raise questions
Requires extra step compared to simply adjusting the membership price
Description of screenshot: Displaying an example of a 3% tax rate
How to Set Up a Tax for Service Fees
Go to your dashboard:
Navigate to Finances > Taxes & Settings (or click here).Create your tax rule:
Fill out the form to specify the tax name, rate, and which memberships it applies to.Important Settings Tip:
If you do not want the tax to be included in the membership base price, make sure to uncheck the “Include Tax” option. This ensures the fee is added on top, not blended into the total.Save your settings:
Click Set Tax to apply your changes. Going forward, the service fee (tax) will appear separately when a member pays.
Description of screenshot: Displaying where to set up the Tax
Frequently Asked Questions