Processing Fees | Stripe – LMN

Processing Fees are now available to add directly to invoices with LMN Pay Powered by Stripe.

In this article:

Understanding the Fees

Setup Processing Fees in LMN

Customer Experience

Process One Time Payments

Payment Runs

QuickBooks Flow Changes

FAQ

Understanding the Fees

The “LMN Pay Powered by Stripe Processing Fee” is an optional tool designed to help you recoup some of your payment processing costs. This fee is collected from your clients and goes directly to you, not Stripe.

LMN Pay Powered by Stripe Processing Fees

What it is: This is a feature within LMN functionality. When enabled, it automatically adds a line item to invoices paid through LMN Pay.
Purpose: Allows our customers to add a fee on top of the invoice for any reason
Who pays it: This processing fee is paid by your customer directly to you
Important Note: This fee DOES NOT go directly to Stripe

Stripe Transaction Fees (Shown on Payout Report)

What it is: This is a fee charged by Stripe directly to you (the merchant) for all processed transactions. Stripe deducts this fee prior to depositing funds to your bank account. This is called Net Billing.
When it applies: This fee will be applied to all transactions on the full amount that you receive (invoice amount + Stripe Processing fee), regardless of whether the "LMN Pay Powered by Stripe Processing Fee" is enabled.
Billing: The merchant (you) will receive a payout report in LMN, under the Payout tab, which outlines what fees were deducted from Stripe before depositing into your bank account.

Setup Processing Fees in LMN

Log into LMN navigate to Settings > Account > LMN Pay
Under Payment Methods, check the box called Include processing fees of [X%] on invoices to initiate the ability to add processing fees to that specific payment method. Processing fees can be managed here, as well as directly on the invoice itself. Invoice-level controls will take precedence over the default settings you set here.
⚠️ We have removed dollar thresholds completely, and added processing fees in its place.
Enter the processing fee percentage(s) for Credit/Debit Card and Bank Transfer. Then click Save Changes.
💡TIP: You can turn off processing fees on one payment method and keep it for another should you choose.
QuickBooks Users: A NEW Processing Fees Cost Code is created for you once you enable the Processing Fees feature. You will need to make sure you Link this new Cost Code to the appropriate Service Item in the QuickBooks Sync Tool

Additional Notes

Invoices created before you enable Processing Fees will have fees turned off by default. This keeps things consistent for clients who have already received an invoice, and avoids an unexpected charge. You can still enable fees on any of these invoices individually if needed by opening up the invoice in LMN, and clicking Edit
From there, check the box on which payment method you’d like to enable processing fees on, and enter the percentage of that fee.

Customer Experience

Customer Checkout Workflow

With Processing Fees enabled in LMN, your customers will see different invoice totals before they pay. The amount depends on the fee percentages you set in LMN Pay settings and whether fees apply to card payments, ACH payments, or both.

For this example, we have enabled processing fees for both credit/debit card and ACH at 3% and 1% respectively as the merchant.

Step 1: Send your customer the invoice from LMN (which will also post it in their Customer Portal if they have an account).
⚠️ We recommend NOT exporting invoices over to QuickBooks until an online payment has been received. This is a new workflow recommendation to prevent overpayments in QuickBooks

Step 2: Your customer will open the invoice by clicking the Review & Pay Button in their email, or by clicking into the invoice from their Customer Portal (Create Account or Sign In).

Step 3: They will be presented with 2 new options on the right side of their invoice on top of the original invoice amount. This gives complete transparency to your customers on what you will be charging on top of the original amount, as well as putting the final decision in their hands.

Step 4: Your customer will choose between Bank Transfer or Card, and click Next

Step 5: The new invoice total will be reflected on the page they enter in their payment details. Once entered, they can click Pay($) to finalize payment

The final invoice for your customer will reflect the processing fees they Paid , as well as the status of the invoice and Balance of $0.00
Back in LMN, the invoice will reflect the Processing Fee having been applied, the new total and a balance of $0.00

Step 6: From the Invoice page in LMN, click on More and from the dropdown click Export to QB (if you use QuickBooks)

Step 7: Navigate to Payments in LMN to export any new payments. Click the box next to the payment, click on Update Status and from the dropdown click Export to QB.
💡Invoices must be exported over to QuickBooks first before exporting payment.

Processing One Time Payments

You will be able to add processing fees directly to an invoice you are running on behalf of your customer inside LMN.

Open up the Invoice in LMN and click on Add Payment💡Note: The Processing Fee column will remain empty until you have successfully processed an online payment.
Click on Select Payment Method
Choose between 2 options:
- Option 1: If a Default Payment Method has already been saved in the CRM for this customer, you can select it here. This will also show you what the processing fees would be if you processed the payment.
- Option 2: If you are making a one time payment with a credit/debit card you received over the phone or in person from your customer, click on make a one-time card payment to bring up the card entry form. Processing fees will auto fill in the field below to make it easy to let the customer know what the new total will be before you hit Process Payment
Once pricing is confirmed, click Process Payment
In both options listed above, the result will be the same. The Processing Fee will be reflected on the final invoice with the updated amount and a balance of $0.00

Payment Runs with Processing Fees

When you initiate a Payment Run in LMN, and Processing Fees are enabled in LMN Pay Settings, each invoice that is run will have the appropriate processing fee automatically applied.
⚠️ There is no separate column for Processing Fees on this view at this time. The fee will show up on each individual invoice once the Run is complete. We hope to update this modal in the future.

Navigate to Payment > Payment Runs
Select the box next to the invoice you wish to run payment methods against
Click Payment Run
Next, Type in CONFIRM, and click Run

You can see that the new total, with the processing fee, has been reflected on the Payment(s) after the Run is complete.

New QuickBooks Workflow

If you are currently utilizing our QuickBooks Sync Tool to export your Invoices and Payments from LMN, there is a new workflow that you and your team will need to adopt to avoid overpayments being recorded in QuickBooks. Let’s dive in!

🛑 Failure to adapt to this new workflow will result in an overpayment in QuickBooks once you send the payment over (the new payment captured will be MORE than the original invoiced amount).

Navigate to Settings > Account > LMN Pay
Enable Processing Fees.
Once enabled, and configured, you will see this banner below that will let you know a NEW Processing Fees Cost Code has been created and added to LMN on your behalf. You will need to link this new Cost Code to the appropriate Service Item in the QuickBooks Sync Tool.
This new Cost Code can be located in Settings > Estimates > Cost Codes⚠️ The NEW Processing Fees cost code cannot be edited or deleted.
Next, go into the LMN QuickBooks Sync Tool and navigate to SETUP > Link Service Items.
From here, link the Cost Code Processing Fees to the appropriate Service Item in your QuickBooks to record this revenue (e.g. other income, sales, processing fee revenue).⚠️ This step is critical for mapping the processing fee from LMN to QuickBooks.
Since we do not add the processing fee to the invoice total until the payment has been successfully processed, we strongly recommend adjusting your workflow to wait to export invoices over to QuickBooks until the payment is made.

In Conclusion:

Step 1: Generate Invoice in LMN, Approve and send for payment (or approve and initiate Payment Run)
Step 2: Leave the Invoice in an Approved status until payment has been captured with the processing fee added (whether from your customer paying the invoice directly, or from you running the payment on their behalf)
Step 3: Once payment has been processed, and the balance on the invoice in LMN is $0, click on More, then click on Export to QB
Step 4: Open Payment in LMN, and click on Export to QB
In QuickBooks, once the paid LMN invoice has been exported over, the Processing Fee line is now a separate line item on the invoice, linked to the Service Item you chose in the QuickBooks Sync tool. This new line item brings your invoice total up to match with the new total that was paid with processing fees.
⚠️ If you send over an invoice without a payment first, the invoice total will not reflect the new total with fees. This will create an overpayment when you export the payment from LMN, as it will not match.

Once your payment has been exported to QuickBooks, it will mark the invoice as paid in full with a balance of $0.

💡Troubleshooting Tip: Troubleshooting Tip: If there is a negative balance, or a credit memo on your customers account in QuickBooks, this means you exported the invoice prior to receiving an online payment. Use one of the following options below to fix:
- Option 1: You can delete the invoice & payment from QuickBooks and resync them from LMN to get the totals to match.
- Option 2: Manually add a line item to the invoice in QuickBooks called Processing Fees with the fee total that is in LMN. This will bring the invoice total up to match the payment that is due to be Exported over

FAQ

Customer Support

One of the great things about switching to LMN Pay Powered by Stripe is that Stripe Support is Granum Support. You will continue to receive the same world class Customer Support your used to, without the need to call a third party for online payment assistance. Trust Granum Support to handle all your payment questions!

Email lmn-support@granum.com or message us through our in-app Support Chat
You can also reach us by phone during business hours (8am - 6pm EST) at 1-888-347-9864.
After-hours support is available for urgent needs, handled on a case-by-case basis.

Email Template

We have provided a template for you HERE to use that will help notify your customers of this change. Feel free to adjust to your business needs.

Commonly Asked Questions

Can I turn off/on Processing Fees on a specific CRM customer?
You will be able to adjust and control processing fees directly at the invoice level, and global platform level (LMN Pay Settings). There is no Processing Fee control on the CRM level at this time.

Will adding a Processing fee to my customers invoices recover 100% of the transactional fees we are charged from Stripe?
By turning on the Processing Fee feature, you will recover most of the processing cost from your customer, but not all of it. This is because Stripe calculates its fee on the full payment amount, including the processing fee added to the invoice.
Example:
If your customer’s invoice is $1,000.00 and you add a 3% processing fee, the customer will pay $1,030.00.
Stripe then charges 2.99% + $0.30 on the full $1,030.00 payment. That works out to $31.10 in Stripe fees.
Since you collected $30.00 from the customer as the processing fee, your remaining cost is $1.10 out of pocket.
💡Tip: To recover that remaining amount, we recommend adding a line item to the overhead section of your LMN Budget. This helps spread those leftover fees across all of your estimates over the course of the year.

Will turning on Processing Fees affect current outstanding invoices in LMN?
Invoices created before you enabled processing fees will have fees turned off by default. This keeps things consistent for clients who have already received an invoice, so no one gets an unexpected charge. You can still enable fees on any of these invoices individually if needed.

What if I have outstanding invoices in QuickBooks that do not have Processing Fees added and my customers choose to pay online after I turn on this feature?
Invoices created before you enabled processing fees will have fees turned off by default. This keeps things consistent for clients who have already received an invoice, so no one gets an unexpected charge. You can still enable fees on any of these invoices individually if needed.

If you do enable fees individually on an invoice that has already been sent to QuickBooks, you will need to either

a) Delete the invoice from QuickBooks and resync from LMN after payment is made.
b) Add a line item called Processing Fees to the invoice in QuickBooks once the fee is recorded in LMN after the payment is received. This will bring your invoice total up to match the payment ready to be Exported from LMN.

If we can no longer export outstanding invoices to QuickBooks, how can we monitor our A/R in LMN?
You are able to see all outstanding invoices and send out invoice reminders directly from LMN in your Invoice List. You can filter by age, status, stage, and date range.
Filtering by Age is the best way to view and action your most outstanding invoices
To send email reminders, toggle the invoices you wish to select, click on Update Invoices, then click on Send Invoice Reminders

To see which invoices have had a processing fee added, look to the NEW column called Processing Fees in your Invoice List. You will be able to filter your view by ascending or descending by clicking on the column header.

To see an overview of all invoice activity in LMN, including overdue invoices, navigate to Analytics, then click on Invoices, and Invoice Overview
💡 Tip: Utilize the filters across to see overdue invoices per CRM account, division, or date range.

If you need to export your list of invoices, scroll down to the bottom of the Invoice Overview section until you get to Invoice List. From there, click on the three dots to initiate an Export to Excel.