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How to Pass Service Fees to Your Members

Learn how to pass the service fees onto your Members

Leah Pelkey avatar
Written by Leah Pelkey
Updated yesterday

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

  1. Go to your dashboard:
    Navigate to Finances > Taxes & Settings (or click here).

  2. Create your tax rule:
    Fill out the form to specify the tax name, rate, and which memberships it applies to.

  3. 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.

  4. 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

Where can I find the Join It service fee for my package?

You can view the service fee for each package in this article here or on our pricing page here.

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