How GoDaddy Payment Processing Works and What It Costs
What GoDaddy Payment Processing Does
GoDaddy Payment Processing lets you accept credit cards, debit cards, and digital wallets on your website or in person. GoDaddy acts as the middleman between your customer's bank, your bank, and the card networks (Visa, Mastercard, American Express). When a customer swipes, taps, or enters their card, GoDaddy routes that transaction, holds the money temporarily, and deposits it into your business account.
GoDaddy offers two main paths: online payments through their website tools, and in-person payments through a card reader or point-of-sale system. Both charge you a percentage of each transaction plus sometimes a flat fee per sale. The exact rate depends on which plan you choose and how you accept the payment.
You do not need to be a large business to use GoDaddy's payment processing. Sole proprietors, freelancers, and small shops can all set up an account. GoDaddy handles the technical side—encryption, fraud detection, and compliance with payment card standards—so you do not have to build that yourself.
Key Takeaways
- GoDaddy charges a percentage of each transaction (rates vary by payment method and plan, typically 2.7% to 3.5% for online cards) plus sometimes a flat per-transaction fee.
- Money from card sales deposits into your business bank account, usually within one to two business days, though timing depends on your bank.
- GoDaddy's system encrypts card data and handles compliance, so you do not store raw card numbers on your own servers.
- You can accept payments online through your website, by invoice link, or in person with a card reader—each method has its own fee structure.
- Chargebacks and refunds reduce your account balance and may trigger additional fees if they happen frequently.
How Transaction Fees Work
Every time a customer pays you with a card through GoDaddy, you pay a fee. That fee is usually a percentage of the sale amount plus a flat amount per transaction. For example, a plan might charge 2.9% plus $0.30 per online card transaction. On a $100 sale, you would pay $3.20 and receive $96.80.
The exact percentage and flat fee depend on which GoDaddy plan you choose and how the payment happens. Online card-not-present transactions (customer enters their card on your website) typically cost less than in-person transactions, because in-person has higher fraud risk. Digital wallets like Apple Pay and Google Pay often have their own rates. ACH bank transfers (customer pays directly from their checking account) usually cost less than card payments.
GoDaddy does not charge a monthly subscription for basic payment processing, but some of their higher-tier plans include additional features—like invoicing, inventory tracking, or advanced reporting—and those plans do have a monthly cost. You only pay transaction fees when money actually moves.
When Money Lands in Your Bank Account
After a customer completes a payment, GoDaddy does not immediately send that money to you. Instead, they hold it temporarily while they verify the transaction is legitimate and check for fraud. This holding period is called the settlement cycle. For most businesses, GoDaddy settles transactions once per day, usually at night.
Once GoDaddy initiates the settlement, the money travels from GoDaddy's bank to your business bank account via ACH transfer. That journey typically takes one to two business days, depending on your bank's processing speed. Some banks deposit ACH transfers the same day they receive them; others wait until the next business day. Weekend and holiday delays are common—a transaction settled on Friday evening might not appear until Monday or Tuesday.
You can check your settlement schedule and pending deposits in your GoDaddy account dashboard. If you need money faster, GoDaddy offers expedited settlement options for an additional fee, though this is most useful for high-volume businesses.
Online Payments Versus In-Person Payments
GoDaddy handles online and in-person payments differently, and the fees reflect that difference. Online payments happen when a customer enters their card details on your website, through an invoice link you send them, or through a payment button you embed in an email. These are called card-not-present transactions. The customer's card never physically appears, so fraud risk is lower than you might think—the card networks and GoDaddy's fraud tools catch most problems. Online card payments typically cost 2.9% plus $0.30 per transaction, though rates vary by plan.
In-person payments happen when you swipe, tap, or insert a physical card into a GoDaddy card reader, or when a customer enters their PIN at your point-of-sale terminal. These are called card-present transactions. Even though the card is right in front of you, fraud risk is actually lower because the card networks trust the physical verification. However, GoDaddy charges slightly more for in-person payments—often 2.7% plus $0.30, or sometimes a flat rate like 2.6% with no per-transaction fee. Rates depend on your plan.
If you accept both online and in-person payments, you will see separate line items on your settlement report for each type. This helps you track which sales channel costs you more in fees.
Chargebacks and Refunds
A chargeback happens when a customer disputes a charge with their bank and the bank reverses the transaction. The money comes back out of your account, and GoDaddy usually charges you an additional fee—typically $15 to $25 per chargeback—for handling the dispute. Chargebacks are rare if you run an honest business and deliver what you promise, but they do happen.
A refund is different. You choose to give the customer's money back, usually because they returned a product or you made a mistake. When you issue a refund through GoDaddy, the money goes back to the customer's card, and you do not pay an additional fee. However, you also do not get back the transaction fee you paid when the original sale went through. If you sold something for $100 and paid $3.20 in fees, then refunded the $100, you keep the $3.20 loss.
If chargebacks become frequent—more than a small percentage of your total sales—GoDaddy may flag your account for review or raise your rates. This is why accurate product descriptions, clear refund policies, and good customer communication matter.
Security and Compliance
GoDaddy encrypts all card data using industry-standard protocols, so customer card numbers are never stored on your own website or servers in readable form. When a customer enters their card on your site, GoDaddy's secure servers handle the data, not your hosting account. This protects both you and your customers from data theft.
GoDaddy is PCI DSS compliant, which means they meet the Payment Card Industry Data Security Standard. This is a set of rules that all payment processors must follow to keep card data safe. Because GoDaddy handles the compliance work, you do not have to hire a security consultant or undergo expensive audits yourself—though you are still responsible for keeping your own business systems secure (strong passwords, updated software, etc.).
GoDaddy also monitors transactions for fraud patterns. If they detect unusual activity on your account—like a sudden spike in transactions from a single country, or repeated failed card attempts—they may flag or hold those transactions while they investigate. This can delay your settlement, but it protects you from becoming a target for fraud.
How to Set Up GoDaddy Payment Processing
To start accepting payments through GoDaddy, you need a GoDaddy account and a business bank account. GoDaddy will ask for your business name, tax ID, and banking details. They verify this information before activating your account, which usually takes a few business days.
If you want to accept payments on your website, you log into your GoDaddy account, navigate to the payment processing section, and choose whether you want a payment button, a full checkout page, or an invoice system. GoDaddy provides code snippets you can paste into your website, or you can use their drag-and-drop tools if you do not know how to code. For in-person payments, you order a card reader from GoDaddy, download their point-of-sale app to your phone or tablet, and connect the reader via Bluetooth.
GoDaddy's dashboard shows you all your transactions, settlement history, and fees in one place. You can download reports, set up automatic payouts, and adjust your settings without calling customer support.
Frequently Asked Questions
What if a customer's card is declined?
GoDaddy will tell you immediately that the transaction failed. The customer's bank rejected it—usually because of insufficient funds, a wrong card number, or fraud detection on their end. No fee is charged for a declined transaction. You can ask the customer to try a different card or payment method.
Can I use GoDaddy payment processing if I do not have a website?
Yes. You can send payment invoices via email, accept in-person payments with a card reader, or use GoDaddy's point-of-sale app on your phone. You do not need a website to process cards through GoDaddy.
What happens if I refund a customer after they have already received their money?
The refund goes back to the card they used to pay. If they paid with a debit card, the money returns to their checking account. If they paid with a credit card, the refund appears as a credit on their next statement. GoDaddy handles the routing; you just initiate the refund in your dashboard.
Do I pay GoDaddy fees on tax or shipping?
Yes. GoDaddy calculates fees on the total amount the customer pays, including tax and shipping. If a customer buys a $50 item, pays $5 tax, and $10 shipping, you pay the transaction fee on the full $65.
What if I want to switch to a different payment processor?
You can stop using GoDaddy payment processing at any time. Your existing transactions and settlement history stay in your GoDaddy account for your records. You will need to set up a new processor and update your website or point-of-sale system to use it instead.