Today’s topic is a bit more practical, but it’s one I get asked from time to time: Should I pass credit card fees on to my buyers?
It’s an understandable question. With processing fees typically landing between 2% and 3%, and even higher for certain cards like American Express, those charges can add up quickly—especially when you’re selling higher-priced originals.
Still, in my experience running a gallery and selling thousands of artworks, I’ve come to a clear conclusion: it’s almost always better not to pass those fees along.
The Hidden Cost of Friction
Yes, you’ll save a few percent by charging the buyer, but at what cost? Every layer of friction you introduce in the purchase process increases the chance that the buyer will hesitate, stall, or walk away entirely.
Think of your own experience. You’re dining at a restaurant and at the bottom of the bill it reads, “3% fee added for all credit card payments.” It’s not a huge amount, but it leaves a bad taste. It signals a business that’s nickel-and-diming its customers. Now imagine that same feeling at the moment someone is deciding whether or not to spend $3,200 on your painting.
This is not the moment to invite second thoughts.
Make It Easy to Say Yes
In any sales process, your goal is to remove as much resistance as possible. That includes:
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Clear pricing
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Easy-to-understand policies
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Convenient payment methods
Credit cards—and particularly tap-to-pay and digital wallets—have made it easier than ever for collectors to make purchasing decisions quickly and comfortably. I want to encourage that behavior, not penalize it.
My philosophy has always been: if a fee helps close a sale, it’s not a fee—it’s a cost of doing business.
But What About American Express?
Yes, AmEx charges higher fees. But they’re worth every penny.
Over the years, we’ve seen that American Express cardholders are among our most enthusiastic buyers. They often spend more, buy faster, and are comfortable making premium purchases. Turning them away or penalizing them is just not worth it.
If you want to be in the business of selling fine art, you need to be ready to serve people who expect—and appreciate—a frictionless experience.
Absorb the Fee, Make the Sale
Rather than worrying about squeezing every last percentage point out of a transaction, focus on the lifetime value of a collector. Make the purchase easy, seamless, and enjoyable—and they’ll be far more likely to come back and buy again.
In short:
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Don’t pass fees to your buyer.
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Accept every major card, including AmEx.
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Make it easy to spend money with you.
The sale you lose over a 3% fee will cost you far more than the one you absorb and close.
I agree with everything you wrote here except about AMEX. Aside from my life as an artist I have been in the art software business for over 20 years and whenever we had a problem with a credit card company it was invariably with AMEX. We quit taking their cards about 8 years ago and have found that most of the people who buy our app have other cards and don’t mind using them. I love your blog man.
Totally agree.
I completely agree with you!
nickel and diming clients is a sure method to lose sales and turn off any possibility of word of mouth referrals. work it into your pricing formula without identifying it as a seperate charge.
You may have to re-think your pricing. Most transactions today are with a credit or debit card. The fee should be factored into the price.
Agree, without question.
I once had a customer balk at my initial intent of wanting to charge them sales tax on a $300 purchase so I let it go. Was that the correct thing to do? I had to pay my end of the sales tax on it, so at $25 I had $225 I wouldn’t have had otherwise.
Huh. Ever since I started doing it about 40 sales ago, I find that my customers just take it for granted because everybody does it. So I’m 9 months in to selling my mineral Mosaics and mixed media pieces, and I’ve sold over $60 with the highest price. One at $270. I have at of at least three of my works. And I’ve had a number of collectors could come back at later shows to buy more. I’d love to hear alI I could be doing it better. And I think I’ll keep charging the 3% with and of course this is what everyone does. Attitude, with a smile. And I’ve never had a customer change their mind. Instagram com/rockmosaics
I agree with Terah. I would collect 8.25% sales tax. Not charging sales tax is equivalent to giving a 7.7% discount. I’d do that to make a sale. The 3% credit card charge is a no-brainer. I don’t want to turn off a customer, I could always raise my prices by 3% if I wanted to—I round them up to the next $5 anyway.
Thank you, Jason for posting this and for enklightening me on American Express.
Our local convenience store’s gas pumps have 2 prices- cash and card. The card price is $.10 higher. I don’t get gas there. The mark up is too great.
The credit charge on the bottom of a kicak restaurant is offensive but the plastic still comes out, and as I watch, most sales are plastic.
If my profit margin is so slim, I feel I have to pass on my cost of doing business to my clients, maybe it’s time to gently re-evaluate my price structure.
What is a kicak restaurant? Nothing on Google.
Agreed! No nickel and diming. So petty.
And sometimes to close, I pay the tax.
Thank you for this post.
The credit card fee is figured into my asking price. I would never ask for this with the idea that it could turn off a customer. Rarely have I ever been asked to absorb a credit card fee. The exception is occasionally a non profit and they ask in a way that you can easily refuse. I do add the sales tax to the price as that is a normal part of any business and I have never lost a sale because of that.
I’m in a small town in the south. Every business, even the furniture store, adds the credit card fees to the bill— except for the artists and one inexpensive restaurant. In fact, they offer a cash discount and even print the cash price on the bill where you’d normally see the line about the card fee.
I agree with others, not worth haggling over fees or taxes. Although I rarely encounter someone who complains about taxes.
I’m an artist, not an accountant and my opinion is my own. These cc fees art bank fees and are written off on my Schedule C. Just like my Bank of America business account charging me $16/ month.
I have always absorbed the cc fees. Like you stated, it’s part of the price of doing business. I also tell my clients checks are great too. If it’s a larger purchase, I’ll let them write two checks, 1/2 and 1/2. They can post date the second check and I let them walk out with the artwork. It makes a larger purchase more affordable in increments.
I totally agree, always just been part of doing business in my last 25 years.
I’d say it depends on your typical price. Several years ago, one of my boss’s restaurant-owner friends said he had to raise prices 6% across the board to cover the CC fees. And now, I see a growing number of small businesses either not accepting CC or stating “cash prices.” It’s nice if you can work from a “suggested retail price” of 4x your “wholesale,” but a lot of us can’t move art at those prices. Starving artists are already paring margins down just to get sales; they may not have room to swallow CC fees.
I hear you—fees can feel like a squeeze, especially when margins are already tight. But in my experience, Wendy, making the process as easy as possible for buyers pays off in the long run. That said, each artist has to make decisions that align with their market and price points.
I agree! Lately it seems everyone vets, dentists and some retailers are tagging on a 3% credit card fee. Most of the time I’m not aware of the total bill until the work or purchase is completed. It really bothers me to spend 5K at the dentist and then to tag an additional $150. It feels like I’ve been sucker punched.