As a small business owner, one of your top priorities is likely keeping payment processing fees low. With the rise of mobile wallets and contactless payments, you now have more options than ever when it comes to accepting transactions. Wave provides several payment solutions tailored to small businesses, each with their own fee structure. In this article, we’ll break down Wave payment fees so you can make the most cost-effective choice for your business.

Wave Invoicing Fees

Wave Invoicing is a free tool that lets you easily create, customize, send and track invoices online. This is an ideal solution if you bill clients on a recurring basis. There are no monthly fees and standard credit card processing rates apply when clients pay invoices online. You will pay:

• 2.9% + 30¢ for each Visa, Mastercard, Discover or American Express transaction
• 1% with a minimum fee of 5¢ for bank payments

So if you invoice a client $1,000 and they pay with a credit card, you would pay $29 in processing fees ($1,000 x 2.9% = $29). The 30¢ flat fee would not apply since it is below the percentage fee amount.

Wave Payments POS Fees

Wave Payments POS allows you to accept in-person payments using your iPad, tablet or smartphone. There are no monthly fees. You will pay:

• 2.6% + 5¢ for each debit transaction
• 2.9% + 30¢ for each credit card swipe
• 3.4% + 30¢ for each keyed credit card transaction

With POS, you also get access to Wave Payments Plus pricing if you process over $1,000 per month. This reduces your rates to 1.6% + 15¢ per transaction for all card types. Qualifying for the discounted Plus pricing can lead to major savings in payment fees.

Payments POS also supports free contactless payments through Apple Pay, Google Pay, and tap-enabled cards. So there are no additional fees to enable mobile wallet acceptance.

Wave Gift Cards Fees

Wave Gift Cards lets you create both digital and physical gift cards to help drive revenue for your business. Pricing is simple for this tool:

• 1% fee for each gift card sold
• 5¢ for each gift card redeemed

So if you sell a $50 gift card, you would pay a fee of 50¢. When the recipient uses that gift card to make a purchase, you would pay 5¢ in fees.

Gift cards do not expire, so you will continue collecting 5¢ fees each time someone redeems one. Selling gift cards through Wave is an excellent way to create repeat business.

Which Fees Are Right For You?

When selecting the right Wave payments solution for your business, consider transaction volume. Wave Invoicing is likely the most budget-friendly option if you only occasionally invoice clients and volume is low. The 2.9% + 30¢ credit card rates are competitive.

For accepting in-person payments, Wave Payments POS offers the best value with the discounted Plus pricing at 1.6% + 15¢ per transaction when you process over $1,000 monthly. This is comparable or lower than the rates charged by traditional credit card processors.

And don't underestimate the value of selling gift cards - the minimal 1% creation fee and 5¢ redemption fee make this a cost-effective tool for customer retention and recurring revenue.

Look at your sales patterns and volumes to determine where Wave can save you the most on payment fees. The great thing about Wave is that you can use their tools in tandem to accept payments across multiple channels. So you may invoice some clients, sell in-store gift cards to others, and process point-of-sale purchases from walk-in customers.

Wave keeps payment acceptance simple and affordable. Be sure to take advantage of exclusive discounts and pricing by signing up through your payments advisor. Keeping transaction costs low will help you bank more revenue over the long-term.