Funeral balances are often large, which makes payment processing fees worth understanding rather than glossing over. A card fee that sounds small as a percentage becomes a real number on a five-figure balance. The fees themselves are normal and charged by the payment provider, but how a software vendor handles them, whether they pass them through or add a markup, is something to pin down before you commit.
How the fees work
- Card fees are typically a percentage of each payment, so they grow with the balance.
- ACH fees are usually lower, often closer to a flat amount, which helps on large balances.
- Fees are charged by the payment provider, not the software vendor.
- A vendor can pass fees through at cost, or add a markup on top.
The questions that matter
| Question | Why it matters |
|---|---|
| Pass-through or markup? | A markup raises your cost on every payment |
| Card and ACH rates? | ACH can save real money on large balances |
| Any platform fee on payments? | Some tools add a layer beyond the processor |
| Who is the processor? | Determines the underlying rates |
Be accurate with families
However you handle fees, the amount a family is charged should be accurate and clearly itemized. The FTC Funeral Rule emphasizes accurate, itemized price information, so any fee or surcharge passed to a family should be transparent and recorded on the case. This is operational guidance, not legal advice; check the FTC resources and your counsel.
What to ask software vendors
- Do you pass processing fees through at the provider rate, or add a markup?
- What are the card and ACH rates?
- Is there any platform fee on payments beyond the processor?
- Can I offer ACH for large balances?
How FuneralHQ handles this
FuneralHQ passes payment processing fees through at standard provider rates with no platform markup, and supports ACH so you can steer large balances to the lower-fee method. Fees are separate from your per-company subscription. See the pricing page.
Related resources
Read ACH payments for funeral homes and what should be included in software pricing.