What “2.9% + 15¢” means: card fees in plain numbers

Almost every card fee is written the same way: a percent, a plus sign, and a few cents. Here is how to read it and what it means for a real sale.

The two parts

• The percent is taken from the sale amount. It grows with the sale.
• The fixed part is charged once per sale, whatever the amount.

On Pavo’s Free plan, a tap is 2.9% + 15¢ and a payment by link or QR code is 3.3% + 30¢.

Three sales, worked out

• A $5.00 tap. The fee is $0.29. You get $4.71.
• A $48.00 tap. The fee is $1.54. You get $46.46.
• A $125.00 pay link. The fee is $4.43. You get $120.57.

Look at the first one. On a small sale the fixed part is most of the fee. That is how percent-plus-cents pricing works anywhere, and it is why some sellers set a small minimum for cards where the card rules allow one.

Why a link costs more than a tap

When a card is held to a phone, the card proves it is really there. When a card number is typed into a web page, there is more room for fraud, so it costs more to process.

The costs that are not in the headline

The rate is only part of what you pay. Before you pick a way to take cards, check these too:

• A monthly fee. Pavo’s Free plan has none.
• Hardware. A reader costs money. Pavo uses your phone.
• A fee to move your money to your bank. Standard payouts on Pavo have no fee.
• Whether processing is included. Pavo’s rate on Free is one number with card processing inside it.

Seeing the fee before the sale

You should not need a calculator. Pavo shows the fee and what you get under the amount before you charge, on every sale.

If you sell a lot

Pavo Ultra is an optional plan for US sellers at $15 a month. On Ultra a payment carries only Stripe’s fee, 2.7% + 15¢ per tap and 2.9% + 30¢ by link, with no Pavo fee. Whether that saves you money depends on your sales: see is Pavo Ultra worth it.

Working the fee into your price

You have two honest choices. You can absorb the fee as a cost of doing business, like fuel or supplies. Or you can set your prices a little higher for everyone, so the fee is covered whichever way a customer pays. Many small sellers do the second. It is simpler than a separate card price, and customers see one clear number.

To see what the fee does to your month, add up your sales in Pavo and look at the fees line beside them. That one figure tells you more than any rate table.

Tap when you can

If a customer is standing in front of you, take the tap instead of sending a link. On a $125.00 sale a tap costs $3.78 and a link costs $4.43. Over a month of sales the difference adds up.

Outside the United States

The rates in this article are for US sellers. Pavo is open in other countries with rates in the local currency. The questions on the home page list each one.