How Buyer Tips Lead to Lower Processing Fees
Last month, we announced that Farmers who run their business on Barn2Door would be able to offer buyers the ability to give a preset tip (3%, 5%, 10%) or a custom tip (any amount) at checkout. Farms have already seen results from accepting customer tips, using the extra cash to cover their processing fees.
Since 2019, 78% of Farmers using Barn2Door have enabled Buyer tips at check-out. Here’s the data captured across 1000’s of Farmers based on real outcomes when using tipping:
25% of Farms have covered 100% of their processing fees, plus have additional monies left over
75% of Farms have covered an average of 48% of their merchant fees
As a result, 1 in 4 Farmers who utilize Barn2Door tipping pay nothing for processing credit cards (which have been offset by tips)! And, 3 out of 4 Farmers only pay about 1.5% in processing fees. That is about half the going rate for merchant processing on all other platforms!
1 in 4
Farmers pay 0.0% in Processing
3 in 4
Farmers pay 1.5% in Processing
As 60% of Americans now regularly purchase groceries online, it’s important that Farmers offer the same convenience. Americans are already accustomed to tipping in every other aspect of their lives (food delivery, baristas, restaurants servers), so why shouldn’t Farmers accept tips? If your Farm can lower or eliminate credit card processing fees altogether by offering buyers the ability to tip, then you’ll increase profit margins for your business.
Have questions on how your Farm can turn on custom tipping in your Barn2Door account? Navigate to the Store tab in Barn2Door, Manage, and under options, switch on the toggle for “Allow Customers to Tip.” If you want more information regarding best practices to grow and manage your business, attend the next Connect session!
Barn2Door provides an all-in-one solution for Farmers to grow and manage their business. If you’re curious to learn why successful Farms run on Barn2Door, watch this 5-minute video.