Hi Katie!

You're right—the fees usually come up when using a credit card to make a purchase for the grant, and they’re typically around 2–4%. At our institution, when we use a procard for grant-related purchases, the item itself is charged to the grant, but the processing fees are automatically moved to an unrestricted fund. I’ve always found that a bit odd, since the fees are clearly tied to the grant purchase.

I’m also really curious to hear how others are handling this—it's definitely a gray area!

Warm Regards,
Linda Phinguyen

-----Original Message-----
From: Walker, Katie - kwalker at bu.edu (via resadm-l list) <xxxxxx@lists.healthresearch.org>
Sent: Wednesday, May 14, 2025 10:09 AM
To: xxxxxx@lists.healthresearch.org
Subject: [RESADM-L] RE: Clarification on Charging Credit Card Processing Fees to Federal Grants

What type of processing fees are you talking about?

If it's a fee for associated with using the card for a grant-related purchase I would say yes under the umbrella of "cost of doing business" assuming that the cost is reasonable and that there's no reasonable way to avoid it under your organizational policy.

Two examples I'm thinking of are the 2% charges we receive here when using cards for international transactions, and the $3 or whatever fee that some places charge you to use a credit card rather than provide banking information.

If the grant needs the item and the way to acquire it requires a small fee, that's a legit grant-related cost to me. If the fee is significant, or there's an equivalent version that comes without the fee, that's when it gets more complicated.

Would be curious what other people have to say though.

Katie Walker | Director, Finance & Administration | Center for Psychiatric Rehabilitation Boston University | Sargent College of Health & Rehabilitation Sciences xxxxxx@bu.edu  |  cpr.bu.edu  | 940 Commonwealth Avenue, Boston, MA 02215

-----Original Message-----
From: Linda Phinguyen - linda.phi-nguyen at ucr.edu (via resadm-l list) <xxxxxx@lists.healthresearch.org>
Sent: Tuesday, May 13, 2025 9:14 PM
To: xxxxxx@lists.healthresearch.org
Subject: [RESADM-L] Clarification on Charging Credit Card Processing Fees to Federal Grants

Hello,

I’m receiving conflicting information regarding whether credit card processing fees are allowable charges on federal grants. I’ve reviewed the CFR and FAR but haven’t found anything explicitly addressing this.

Any guidance or insight you can provide would be greatly appreciated!

Thanks,

Linda

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