Adding sales tax and processing fees to invoices

You can include certain taxes or additional fees on an invoice by creating them as products and adding them as line items.

Important: Laws and card network rules vary by location and change frequently. It’s your responsibility to confirm that any taxes or fees you charge are permitted and compliant.

In this guide, we'll cover:

• Creating a product for additional charges
• Adding sales tax to an invoice
• Adding a credit card processing fee to an invoice

Creating a product for additional charges

To add sales tax or a credit card processing fee to an invoice, you’ll first create a product.

1. Navigate to Settings > Services and products > Products
2. Enter a product name and price, based on the type of charge:
   • Sales tax: Enter a description that works for you and set the Price to $0
   • Credit card processing fee: Enter a name such as Credit Card Processing Fee or Credit Card Surcharge, and set a fixed Price

3. Click Save changes

Note: Percentage-based pricing isn’t supported, but you can adjust the amount directly on the invoice.

Adding sales tax to an invoice

Many practices add sales tax to invoices by applying a sales tax product as a line item.

Important: Some states require or prohibit sales tax for certain products and services. Be sure to verify applicable laws before charging sales tax to a client.

To add sales tax to an invoice:

1. Navigate to the client’s profile > Billing page and create or open an invoice
2. Select More > Edit in the top right corner
3. Click + Add Line Item
4. Click + Add next to the sales tax product

5. Enter the appropriate sales tax amount in the Amount field
6. Click Save

The Total on the invoice will update based on the amount entered.

Adding a credit card processing fee to an invoice

Some practices choose to pass credit card processing fees on to clients. This practice, often referred to as surcharging, is illegal in some states and restricted in others.

Important: Card network rules impose additional requirements on these fees, and some states prohibit them entirely. Always verify applicable laws and card network rules before charging a processing fee.

To add a credit card processing fee to an invoice:

1. Navigate to the client’s profile > Billing page and create or open an invoice
2. Select More > Edit in the top right corner
3. Click + Add Line Item
4. Click + Add next to the processing fee product
5. Adjust the Amount if needed
6. Click Save

Legal and compliance considerations

Important: This information is provided for general awareness only and is not legal advice. Consult a qualified attorney for guidance specific to your practice.

Is surcharging legal?

State laws related to credit card surcharges, often referred to as “surcharge bans”, vary widely and may prohibit charging additional fees for card use. Because these laws change frequently, it’s important to review your state’s requirements before applying fees.

Is it compliant with card network rules?

Card networks such as Visa impose detailed rules governing surcharges, convenience fees, and service fees. These rules may require prior notification, limit fee amounts, and include disclosure obligations.

Because card network rules change frequently, it’s your responsibility to ensure compliance before charging any additional fees.