4, September, 2024
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How Much Does HoneyBook Charge per Transaction
Biography
Sarah Cruz writes about customer relationship management solutions, bringing a deep understanding of the financial services industry. With a proven track record in wealth management and client relations, she provides helpful pointers on how CRMs can enhance client service, streamline workflows, and, ultimately, drive growth within the financial sector.
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Biography
David Lee brings over 3 years of CRM experience to the table, with a proven track record of success in helping businesses leverage technology to achieve their customer relationship goals. He is a data-driven CRM strategist with a keen understanding of how to utilize CRM systems to gain actionable customer insights and personalize customer interactions. David is a regular contributor to industry publications and frequently speaks at CRM conferences, sharing his knowledge and best practices with the CRM community. He holds a Master's degree in Business Administration (MBA) with a specialization in Marketing.
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Latest Update:
Aug 22, 2024, 9:02 am
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Quick Introduction:
Are you considering implementing a solution that will help you run your business from one place, with no need to manage and collect payments through a third party?
HoneyBook CRM offers an all-in-one solution tailored for small business owners and creative entrepreneurs. With features like customizable invoices, client portals, and online payment processing, effortlessly optimize your back-end processes.
Discover how much HoneyBook charges per transaction and streamline the financial planning for your business and its transactions.
HoneyBook Transaction Fees
To facilitate transactions between your client’s card or bank account to your accounts, HoneyBook, as a payment processor, charges a transaction fee. The transaction fee is deducted from your payment total before it is deposited in your bank account.
| Transaction Type | Transaction Fees |
| Cash/Check | No Fees |
| ACH/Bank Transfer | Flat fee of 1.5% of total payment |
| Cardholder Entered Payment | 2.9% of payment + 25 cents |
| Card on File Payment | 3.4% of payment + 9 cents |
The percentage of transaction fees is determined by the amount of payment being made. Additionally, for card payments, 25 cents and 9 cents, respectively, are charged per transaction. You will be able to review the total amount of processing fees through ‘payment completed’ downloadable reports provided by HoneyBook. You will also be able to select the timeframe for these reports.
Cardholder Entered Payment vs. Card on File Payment
Cardholder-entered payment is one where the card is either being entered for the first time or its details are being entered again manually. For example, accepting payments for one-time transactions, initial deposits, and usage of new cards to complete a payment
A card on file refers to payments made from a card that is securely stored in the system from previous transactions. For example, payments made via autopay refer to the card on file payment type. HoneyBook noticed that clients relying on card-on-file payment types are 20% more likely to pay their dues on time.
Payment Processing Times
Based on the payment method used by your client, the amount of time it takes for a payment to reach your bank account varies.
| Payment Type | Processing Time |
| Card Payment | 2-3 Business Days |
| ACH/Bank Transfer | 7-8 Business Days |
Note: The above-mentioned payment processing times are applicable only for smart file-based payments. Payments made via lead forms will take 5-7 business days to process.
Also, once your client has made the payment, the status of the ACH/bank transfer will be ‘processing,’ whereas the status of card payments will be ‘paid.’
All these insights will be visible from the payments tab of your bookkeeping tool as well as on the invoice.
Setting up Your HoneyBook Account to Receive Payments
From the settings page, connect your bank account through the bank details section to easily receive your clients’ payments.
If you have already received a payment before setting up your bank details, the payment processing will begin after the bank details are verified.
The benefit of sending an invoice through HoneyBook is that your client will be able to review the payment schedule and make payments through card or ACH/bank transfer.
Wrapping Up
For seamless business transactions, gain clarity on HoneyBook’s transaction fees and optimize your financial planning. The transparent transaction fees of HoneyBook ensure cost-effectiveness and increased profitability for your business through informed decision-making.
