One of the best ways to handle charging for subscriptions or repeatedly bought products is by sending a Recurring Invoice. They allow you to keep track of client payments and even automate the process.

Usually, on the first purchase of this kind of product, you may want to charge a bit extra—whether as insurance, to cover extra costs, or to open an account for the client. This is known as a set-up fee, and you can quickly add them to your invoices to keep track of the entire transaction in one place.

How to Add Set-Up Fees #

• To start, head over to the Products tab inside your Payments section and click on Create Product.
• Add the details as normal, continue to the Pricing section, and select the price type as recurring.
• In the amount field, enter the price that will be charged to your customers regularly—whether weekly, monthly, or annually, depending on your business model. Additionally, enter a compare-at price, then configure the billing period and trial period, and set the total number of payments that should be collected.
• Next, add the amount for the Setup Fee. When added to an invoice, this will be charged to your customers on the first invoice and disappear in the later ones.
• After saving the product with both the recurring price and the setup fee, go to the Recurring Invoices tab by clicking the option in the Invoices & Estimates dropdown.
• To initiate the process of sending recurring invoices to your client, select “+New,” then “New Recurring Invoice.”
• As you create the invoice, include the product you just set up, which contains both the recurring charge and the setup fee. The system will automatically apply both charges to the first invoice.

Once added, you will see two charges on your invoice: one for the product and one for the setup fee. Complete the invoice as usual. For subsequent invoices, the setup fee will not be included.

Scroll down to manage your recurring invoice settings. Here, you can customize the invoice frequency to suit your needs, such as monthly or weekly, and select the specific day (e.g., the first or last Friday). You can also define the interval between invoices, set the start and end dates, and specify how many days in advance the invoice should be sent.

There you have it! You can now easily add setup fees to your recurring invoices, eliminating the need to charge them separately or search through the system for the payment, as everything will be included under the same invoice.

Frequently Asked Questions #

What is a setup fee on a recurring invoice? #

A setup fee is a one-time extra charge applied on the first recurring invoice, often used to cover onboarding, account setup, or upfront costs.

Where do I add a setup fee? #

Create or edit a product in the Products tab under Payments, set the price type to recurring, and enter an amount in the Setup Fee field before saving.

Is the setup fee charged on every recurring invoice? #

No. The setup fee is charged only on the first invoice and is automatically excluded from all subsequent recurring invoices.

How do I send a recurring invoice that includes the setup fee? #

In the Recurring Invoices tab, click +New > New Recurring Invoice and add the product configured with both the recurring price and setup fee.

Can I control how often the recurring invoice is sent? #

Yes. In the recurring invoice settings you can set the frequency, specific day, interval, start and end dates, and how many days in advance it is sent.

Will the customer see the setup fee separately? #

Yes. The first invoice shows two charges—one for the product and one for the setup fee—so the breakdown is clear to the customer.