Understand everything you need to know about HoneyBook payment fees, including how they compare to others, which fees are applied to different transactions, and what you get out of using HoneyBook payment processing.
HoneyBook is the standard for independent businesses to manage every part of their clientflow. That means you have access to tools for selling your services, booking clients, managing communication, organizing projects, and more–all in one place.
The biggest benefit of an all-in-one system is the time and money you save without navigating between multiple programs. One example of a critical tool that’s already built into HoneyBook is payment processing.
By combining everything you need for booking projects and getting paid, it benefits both you and your clients. On your end, the back-end process is more efficient, and on the client side, they get to experience a streamlined and professional booking experience.
- Why does HoneyBook have transaction fees?
- What are HoneyBook’s transaction fees?
- How do HoneyBook’s fees compare to others?
- What are the benefits of HoneyBook payment processing?
- Why use HoneyBook for payment processing?
Why does HoneyBook have transaction fees?
HoneyBook doesn’t charge fees for access to the payments functionality, but it has transaction fees when a client pays you by card or ACH payments (bank transfer). That means you can still accept cash and check payments and mark them as paid in HoneyBook without incurring fees.
However, the convenience and professionalism of online payments are unmatched. Your clients are already used to checking out instantly when they’re online shopping, and they’ll expect a similar experience when they book your services.
82% of Americans are already using digital payments, and that trend will only continue to grow. Millennials and Gen Z are beginning to become the majority of the workforce, and they’re already showing a strong preference for a variety of digital payment methods as well.
Transaction fees are necessary for payment processors like HoneyBook to be able to facilitate the transaction between your client’s card or bank accounts and your account.
Without a payment processor, you would have to set up your own payment gateway, comply with certain requirements, and take full responsibility for protecting cardholder data. TLDR; it just isn’t realistic for independent business owners to accept payments without one.
By using a payment processor, the fees cover the convenience, security, and professionalism of offering online payments.
What are HoneyBook’s payment fees?
Beginning December 14, 2022, HoneyBook is rolling out new transaction fees for members. Our fees are changing for the first time in eight years to allow for more pricing transparency, a seamless workflow experience for members, and to maintain a competitive offering.
In the eight years since we first established our transaction fees, we’ve continued to expand the functionality, flexibility, and security of HoneyBook payment processing. Members now have access to benefits like automated invoices, flexible payment schedules, and dedicated dispute support.
Despite the additional benefits, HoneyBook payment fees are still some of the lowest in the market compared to other common payment processors. Our transaction fees apply to credit card processing, including cardholder-entered payments and card-on-file payments. There are also separate fees for ACH bank transfers and instant deposits.
|Card on File||ACH Payments (received from clients)||Instant Deposit (optional service for transfer of received funds)|
|2.9% + 25¢||3.4% + 9¢||1.5%||Additional 1%|
Cardholder-entered payments means you or your clients are entering their card information for a first-time payment or manually entering it again at any point. These payments take about 2-3 days to deposit into your bank account. Some examples of these transactions include:
- You’re accepting payment for a one-off transaction
- You’re charging your client for the initial deposit before moving to autopay
- Your client is changing to a new card to complete payment
Card on File
Card-on-file payments are made using a card that’s stored in your HoneyBook account. Because these are card payments, they also take 2-3 business days to deposit.
The best example of a card-on-file payment is when you have an ongoing project with a client and you’ve set up recurring payments to automatically charge their card throughout a predetermined payment schedule.
Among HoneyBook members, we found that card-on-file payments are 20% more likely to be paid on time. They make the payment process easier by enabling auto pay and ensuring clients don’t need to input their credit card information manually for each invoice.
ACH payments are direct transfers from your client’s bank account to yours. ACH payments have lower processing fees than card payments, but they take longer to deposit (7-8 business days) and are less secure than card payments.
With ACH transfers, you can face nonpayment due to insufficient funds or closed accounts, which is why card payments tend to be more reliable for business owners.
Instant deposits are an option to fast-track the process of receiving card payments to your bank account. They only work for payments received via debit and credit cards, so you wouldn’t be able to instant deposit an ACH payment.
While card payments typically deposit in 2-3 business days, you can use HoneyBook instant deposit to receive your payments in about 30 minutes. Because of the convenience, instant deposits include an additional +1% fee, but they’re optional for depositing your payments.
How do HoneyBook’s fees compare to others?
Not only does HoneyBook offer some of the most competitive processing fees on the market, but it also offers more convenience for independent business owners. While other business management tools leave it up to you to research, set up, and integrate payment processing, HoneyBook already has it built into the platform.
Other common payment processors like Stripe, Square, and PayPal have higher transaction fees, without additional features built for independent businesses. Some may also include hidden fees, like statement fees, monthly minimums, annual fees, and more.
HoneyBook payment fees are only for processing and instant deposits. Along with competitive transaction fees, your HoneyBook subscription also comes with much more. You have all the tools you need to manage every step of your clientflow, including:
- Lead capture and management
- Online contracts
- Client communication
- Project management
- Customizable, interactive client files
What are the benefits of HoneyBook payment processing?
HoneyBook isn’t just a standard payment processor. Along with additional features that help you manage your business, you also get the following benefits while accepting payments:
- Invoice templates with customizable payment schedules, including recurring and milestone-based payments
- Ability to allow clients to pay faster and on time with autopay
- Built-in payment reminders and notifications
- Secure encrypted end-to-end payments
- Easy payment tracking and reconciliation
- Payment reports and statuses for cash flow management
- Fraud monitoring and support
- Dispute management
- Access to HoneyBook Capital*
- Access to instant deposits (1% additional fee)
- No international transaction fees
- No premium card/card brand fees (e.g. to accept American Express cards)
*HoneyBook Capital is currently only available for eligible users
Why use HoneyBook for payment processing?
HoneyBook goes beyond payment processing to offer an all-in-one clientflow management platform. That means you can manage your pre- and post-booking processes in addition to accepting payments.
You can capture leads with a branded contact form, vet inquiries with questionnaires, set meetings and sessions with our scheduling tool, and book clients with invoices, contracts, and proposals. With customizable file templates, you can build the process that best fits your business and the way you want to work.
HoneyBook offers independent businesses more than payment processing. It creates a better, branded experience that seamlessly combines the booking process with other stages in your clientflow. As a result, your payment process is more streamlined, professional, and repeatable for all clients.