Payment Processing

Set up secure online payments and manage financial transactions in your market

Payment Method Options

LocallyGrown.net supports multiple payment options to meet your market's needs and customer preferences.

💵 In-Person Payments (Default)

Best for: Small markets, cash-focused communities, minimal tech setup

  • Customers pay cash or check at pickup
  • No online payment processing fees
  • Simple reconciliation
  • Builds personal relationships
Pros: No transaction fees, personal interaction, simple setup
Cons: Requires exact change, potential no-shows, cash handling

💳 Integrated Online Payments (Stripe)

Best for: Growing markets, tech-savvy customers, guaranteed payments

  • Secure credit/debit card processing
  • Payment at time of order
  • Automatic refund processing
  • Customer card storage for repeat orders
Pros: Guaranteed payment, convenience, professional appearance
Cons: Processing fees (2.9% + 30¢), requires Stripe setup

💰 Customer Account Balances

Best for: CSA-style markets, frequent customers, prepayment systems

  • Customers prepay into account balances
  • Fast checkout using stored funds
  • Manual or automatic balance adjustments
  • Refunds processed back to balance
Pros: Very fast checkout, customer commitment, cash flow
Cons: Requires customer education, balance management

Setting Up Stripe Integration

For online payments, LocallyGrown.net integrates with Stripe, the leading payment processor.

⚠️ Important: You need your own Stripe account. LocallyGrown.net does NOT process payments for you - we facilitate the connection between your market and your Stripe account.

Stripe Setup Process

  1. Create Stripe Account: Sign up at stripe.com
  2. Complete Account Verification: Provide business information and bank details
  3. Get API Keys: Find your publishable and secret keys in Stripe dashboard
  4. Configure in LocallyGrown: Enter keys in your market's payment settings
  5. Test Transactions: Use Stripe test mode to verify everything works
  6. Go Live: Switch to live mode when ready for real transactions

Stripe Features Available

  • Secure Processing: PCI-compliant payment handling
  • Multiple Card Types: Visa, MasterCard, American Express, Discover
  • International Cards: Accept cards from global customers
  • Automatic Retries: Handle failed payments gracefully
  • Fraud Protection: Built-in fraud detection and prevention
  • Mobile Optimized: Works seamlessly on all devices

Understanding Stripe Fees

Standard Stripe Fees (paid directly to Stripe)

  • Online payments: 2.9% + 30¢ per transaction
  • International cards: Additional 1.5%
  • Currency conversion: Additional 1%
  • Disputes/chargebacks: $15 fee

These fees are separate from LocallyGrown.net's 3% platform fee.

Fee Structure and Revenue Model

Understanding how fees work helps you price products appropriately and communicate costs to growers.

LocallyGrown.net Platform Fee

  • Base Rate: 3% of all sales
  • What's Included: Platform access, hosting, customer support, updates
  • What's NOT Included: Payment processing fees (those go to Stripe)
  • Billing: Monthly invoicing based on sales volume

Example Fee Calculation

$100 Order with Credit Card Payment

  • Customer pays: $100.00
  • Stripe fee: -$3.20 (2.9% + 30¢)
  • Net to market: $96.80
  • LocallyGrown fee: -$3.00 (3% of $100)
  • Available for growers/market: $93.80

The market decides how to split the $93.80 between grower payments and market revenue.

Market Revenue Options

  • Grower Percentage: Set what percentage growers keep (e.g., 85-95%)
  • Customer Surcharge: Add a percentage to customer orders
  • Membership Fees: Annual or lifetime customer memberships
  • Vendor Fees: Charge growers a participation fee

Customer Account Balances

Account balances provide a convenient prepayment system for regular customers.

How Balances Work

  1. Customer Adds Funds: Via credit card or manual adjustment
  2. Automatic Deduction: Orders are paid from balance first
  3. Low Balance Handling: Charge remaining amount to card
  4. Refunds: Returned to balance or original payment method

Balance Management Features

  • Manual Adjustments: Add/remove funds with detailed reasons
  • Balance History: Track all balance changes
  • Balance Monitoring: Track customer account balances
  • Refund Processing: Handle returns and order changes

Best Practices for Balances

  • Encourage prepayment with small discounts
  • Monitor customer balances regularly
  • Clearly communicate balance policies
  • Process refunds promptly and transparently

Financial Reporting and Reconciliation

Keep track of all financial activity with built-in reporting tools.

Available Reports

  • Sales Reports: Revenue by time period, grower, product
  • Payment Reports: Transaction details, payment methods
  • Balance Reports: Customer account balances and adjustments
  • Fee Reports: Platform fees, processing costs
  • Grower Earnings: Individual grower revenue and deductions

Reconciliation Process

  1. Daily: Review new orders and payments
  2. Weekly: Reconcile Stripe deposits with order totals
  3. Monthly: Review platform fees and grower payments
  4. Quarterly: Analyze trends and adjust fee structure if needed

Tax Considerations

  • 1099 Forms: Required for growers earning over $600/year
  • Sales Tax: Varies by state and product type
  • Business License: May be required for market operation
  • Record Keeping: Maintain detailed transaction records
💡 Tax Tip: Consult with a local accountant familiar with farmers market operations and your state's tax requirements.

Security and Compliance

LocallyGrown.net takes payment security seriously with industry-standard protections.

Security Measures

  • PCI Compliance: Stripe handles all card data securely
  • SSL Encryption: All payment pages use HTTPS
  • Tokenization: Card numbers are never stored locally
  • Fraud Detection: Automatic monitoring for suspicious activity

Data Protection

  • Customer Privacy: Payment data protected by Stripe's security
  • Access Controls: Limited admin access to financial data
  • Audit Trails: All payment actions are logged
  • Data Backup: Regular backups of transaction records

Compliance Requirements

  • PCI DSS: Stripe maintains compliance certification
  • Data Processing: GDPR-compliant data handling
  • Financial Regulations: Meets banking and payment standards
  • State Regulations: Compliance with local payment laws

Troubleshooting Payment Issues

Common payment problems and their solutions.

Common Issues

💳 Card Declined

  • Insufficient funds or credit limit
  • Card expired or invalid
  • Bank fraud protection triggered
  • Solution: Customer should contact their bank

🔄 Payment Processing Error

  • Temporary connection issues
  • Stripe service disruption
  • Invalid API configuration
  • Solution: Check Stripe status, verify API keys

💰 Balance Discrepancy

  • Refunds not processed correctly
  • Manual adjustments entered incorrectly
  • Timing differences between systems
  • Solution: Review transaction history, reconcile with Stripe

🏦 Bank Deposit Delay

  • Stripe deposit schedule (2-7 business days)
  • Weekend and holiday delays
  • Account verification requirements
  • Solution: Check Stripe dashboard for deposit status

Ready to Set Up Payments?

Get your market's payment system configured for secure, convenient transactions.

Create Stripe Account Market Configuration Payment Support