Payment Processing - Market Management

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

Create Stripe Account: Sign up at stripe.com
Complete Account Verification: Provide business information and bank details
Get API Keys: Find your publishable and secret keys in Stripe dashboard
Configure in LocallyGrown: Enter keys in your market's payment settings
Test Transactions: Use Stripe test mode to verify everything works
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)

💡 How You Pay LocallyGrown: LocallyGrown does NOT automatically deduct fees from your sales. Your admin panel shows a running fee balance (like a taxi meter) based on your sales. When you're ready to pay, use the PayPal button in your admin panel or mail a check. All customer payments go directly to your Stripe account—nothing is withheld.

Example Fee Calculation

$100 Order with Credit Card Payment

What you receive:

Customer pays: $100.00
Stripe fee (paid to Stripe): -$3.20 (2.9% + 30¢)
Deposited to your bank: $96.80

What you owe LocallyGrown (tracked in your admin panel):

LocallyGrown fee: $3.00 (3% of $100)

After paying your LocallyGrown balance, $93.80 remains for grower payments and market revenue. The market decides how to split this.

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

Customer Adds Funds: Via credit card or manual adjustment
Automatic Deduction: Orders are paid from balance first
Low Balance Handling: Charge remaining amount to card
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

Where the grower payment tools live: The Grower Checks (CSV), Total Sales Report (PDF), and Chargebacks buttons sit at the top of the Grower Management section on your admin page (they moved there from the Our Growers page). After a check run, red and green badges on that section's collapsed header total any grower account debits and credits still waiting to be cleared.

Reconciliation Process

Daily: Review new orders and payments
Weekly: Reconcile Stripe deposits with order totals
Monthly: Review platform fees and grower payments
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