Welcome to another session of our Studio Pro Learning Lab series! 💡 

In this session, you’ll walk away knowing: 

✔️ How to stay compliant while handling credit card surcharges 

✔️ Strategies to minimize payment headaches and protect your revenue 

✔️ And best practices used by high-performing businesses like yours across the country.

Studio Pro: Understanding Credit Card Fees, Surcharges, and Convenience Fees

This Q&A provides clarity on credit card processing fees, including surcharging and convenience fees, and explains how Studio Pro’s compliance tools help you handle these costs safely and legally.

Understanding Credit Card Fees and Compliance

Q: Why do credit card fees matter for studio owners?
A: Credit card processing fees are a normal part of doing business. They make transactions secure and convenient, but can reduce your profits if not managed effectively. Studio Pro’s goal is to help you recover these costs safely and stay compliant with federal and local regulations.

Q: What is the difference between surcharging and convenience fees?
A:

• Surcharge: A percentage fee added to a customer’s bill to recover credit card processing costs. It can’t exceed 3% and can only be applied to credit cards, not debit or prepaid cards.

• Convenience Fee: A flat, fixed fee charged for the convenience of paying online. It must be the same amount for all online payments, and it can’t be applied to auto-pay or payment plans.

Q: Can I use both a surcharge and a convenience fee?
A: No. You must choose one method or the other. These fees cannot be combined.

Q: Why is compliance important?
A: Non-compliance with credit card brand rules can lead to penalties, legal action, or even loss of payment processing privileges. Studio Pro’s new compliance tool helps prevent federal violations, but you should always confirm compliance with your local laws and consult a tax professional or attorney if needed.

Options for Handling Credit Card Fees

Q: What are the different ways to handle credit card fees?
A: There are three approaches:

1. Absorb the cost – Increase prices slightly to cover fees (recommended for simplicity and compliance).

2. Add a surcharge – Pass a percentage of the processing cost to customers.

3. Add a convenience fee – Charge a flat, fixed fee for online payments.

Q: Why does Studio Pro recommend absorbing fees?
A: It’s the simplest and safest way to stay compliant. Many studios raise tuition slightly to cover processing costs, offering “all-in pricing” so families see one clear amount without extra fees. This minimizes confusion and compliance risk.

Q: Can I include convenience or surcharge fees in auto-pay or payment plans?
A: Surcharging can be applied to Auto-Pay or Payment Plans. Convenience fees only apply to online payments.

Using Studio Pro’s New Compliance Tool

Q: What is Studio Pro’s surcharging and convenience fee tool?
A: The surcharging and convenience fee tool ensures that surcharges and convenience fees are only applied where allowed. It prevents settings that could violate Visa or MasterCard regulations.

Q: How do I get access to the new tool?
A: Under Magic > Online Registration, if you were on our legacy tool, you’ll see a blue banner in your account prompting you to set up your preferred option — surcharge, convenience fee, or absorb the cost.

For those who joined Studio Pro after November 2025, you should see these options to set up under Magic → Online Registration or More → Settings → Auto-Pay Settings.

Q: Where do I access the new settings once enabled?
A: You can find them under Magic → Online Registration or More → Settings → Auto-Pay Settings. Once saved, the new settings will override any existing convenience fee configurations.

Q: Does the tool ensure I’m fully compliant?
A: Studio Pro’s compliance mode prevents federal violations, but it cannot verify local regulations. Always double-check your state or regional rules with a qualified professional.

Frequently Asked Questions

Q: Can I apply surcharge fees only to certain classes or seasons?
A: No. Surcharges or convenience fees apply to all eligible online payments in your system once enabled.

Q: Can convenience fees apply to debit cards or ACH payments?
A: Yes, convenience fees can be applied to both debit cards and ACH online payments. Surcharging cannot be applied to debit or ACH transactions.

Q: Is Studio Pro Merchant Services PCI DSS compliant?
A: Yes. Studio Pro Merchant Services is powered by Stripe, a globally trusted, PCI DSS–compliant payment processor.

Q: How can I view the total merchant fees charged to my business?
A: Go to More → Merchant Services, filter by date, and click Download. The downloaded report includes all transactions and associated fees. You can total the “Fees” column to calculate the total fees for your selected period.

Q: How do I raise or adjust convenience fees?
A: If you plan to change your convenience fee, we recommend doing so at the start of a new season or billing cycle. Always communicate the change clearly to customers, explaining that the adjustment helps maintain payment security and compliance.

Q: Can I print or view convenience fees on parent statements?
A: Convenience fees currently appear only on receipts, not parent statements. Parents can see the fee on their transaction receipt, which can be printed or emailed from the line item view.

Q: Does the new tool override previous auto-pay or convenience fee settings?
A: Yes. Once the new compliance mode is active and you click Save, it will replace any previously configured convenience fee settings.

Support and Resources

Q: Who can I contact for help or to activate the new tool?
A: Email support@gostudiopro.com for assistance.