Rebilling Stripe processing fees to clients is legitimate for B2B invoicing in most US states and Canadian provinces — disclose the fee clearly as a named line item on the invoice.
The math: Stripe's standard rate is 2.9% + $0.30 per transaction. On a $5,000 invoice, that's $145.30. On a $10,000 invoice, $290.30. ACH via Stripe costs 0.8% capped at $5 — for large invoices, encouraging ACH payment eliminates the rebilling question entirely.
Three methods to rebill:
- Explicit line item: "Credit card processing fee (2.9% + $0.30) — $145.30" — most transparent, cleanest for client AP
- Baked into rate: increase effective hourly or project rate to absorb the fee — works for stable retainer clients
- Separate reimbursable expense invoice: tag the Stripe fee to the client project in ExpenseBot, then generate a reimbursable expense invoice — common in agency billing
Schedule C treatment: the Stripe fee you paid is deductible on Line 10 (commissions and fees/merchant fees). The amount you collected from the client as a surcharge is ordinary income. Net tax effect is zero — but both sides must be recorded. Record gross payment as income, Stripe fee as a separate expense. Do not subtract the fee from income at source.
How ExpenseBot tracks Stripe fees: Gmail payout emails from Stripe are scanned automatically. The fee appears as a separate expense entry tagged to "Payment Processing." Add the client project tag to make it available in the reimbursable expense invoice builder.
Legal: Stripe's ToS allows surcharging with disclosure. B2B surcharges are generally permitted; consumer transaction surcharges have state-level restrictions in some jurisdictions.
See also: Stripe Payout Rebill Guide | Reimbursable Expense Invoice