Absorb fees for Pre-Approvals and Payment Plans

When you want to encourage customers to commit to automated payments, one way to make the process smoother is by covering the transaction fees on their behalf. 

How it works

• When a customer accepts a Pre-Approval, you can choose to remove the surcharge they would normally see.

• This feature can be applied at two levels:

  • Account level – Apply the setting to all customers.

  • Per-customer level – Apply the setting only to selected payers.

By removing the surcharge at these key points, you make the customer’s decision easier and help them move from ad-hoc payments to fully automated payments.

Why use this feature

Businesses often find that absorbing fees on automated payments is a small investment that pays off quickly in improved cash flow and stronger customer retention.

By making the payment experience more seamless, you increase the likelihood that customers will opt into Pre-Approvals or Payment Plans.

Important details

• You can manage fee absorption separately for Pre-Approvals and Payment Plans, depending on your preference.

• Any subscriptions that were set up before you applied this setting will continue to follow the fee rules that were active at the time they started.

Updated 2025