When it comes to online payment methods for small businesses – and large – redPAY gives business owners the freedom to manage our low-cost processing fees as they see fit.

While it is increasingly acceptable across many industries to pass payment processing fees onto the user of the service, (e.g. credit card surcharge at utility companies, restaurants and telephone bills) – many organisations see advantages to absorbing the fees or creating a shared payment system with their clients.

The options you have with redPAY are as follows:

1. Business pays the payment processing fee

In this case, you as the Service / Product provider will be liable for all payment fees.

The Advantages of this are:

It’s a way to promote uptake of the redPAY service for your clients/members. This may assist you to gain a 100% uptake of redPAY by all your customers, thereby increasing the likelihood of you being paid on time, having better cash flow in your business and fewer bad debts.

Additionally, by having all your clients paying via redPAY, your business reaps all the benefits that flow from accepting online payments.

Perhaps the biggest advantage, is that by absorbing the fee, you are saying, “we value your business and we are happy to wear this.” Absorbing the fee, can provide a competitive advantage over other businesses that on-charge it.

2. Client pays the payment processing fee

In this case your client will be liable for all payment fees.

The Advantages of this are:

Your business is not liable for payment collection charges, and you do not have to raise your fees to cover the costs.

By being transparent with the cost your clients can see that you are not marking it up in any way. It’s a low-cost impost from a financial institution, which is out of your control, and it is the price your clients pay for the convenience of online payments.

While you are oncharging the cost, you have gone with a financial payment provider that is one of the lowest cost providers on the market.

Generally speaking, if clients are happy with quality of service or product they receive from you, they will accept this price. If not, they might shop around.

3. Business and Client share the cost of the payment processing fee

In this case you decide to apportion the processing payment across both parties.

You could elect for the business to cover the flat bank processing charge and oncharge any credit card surcharges if applicable.


You could elect to cover any credit card surcharges if applicable and oncharge the flat bank processing charge.

The Advantages of this are:

In this scenario you are seen as going some ways to cover the costs of online financial transactions that are of a benefit to you – and your client.

It will be seen as an important and fair gesture by your clients.

4. These arrangements can change

As the owner of the business you also have the freedom to change the way you absorb or on-charge the payment processing fee over time – or for selected customers.For example, as part of an introductory offer, you might choose to absorb the payment charges for the first 12 months.

This flexibility is another reason why redPAY is such a valuable online payment method for small businesses. Even medium to large businesses appreciate this flexibility.

I am a Business

wanting a better way to
collect payments

I am an individual

paying money to a
business via redPAY

I am a client

already using redPAY

Speak to one of our redPAY solution specialists today!

contact the team

Speak to one of our redPAY solution specialists today!

contact the team