thread Re: Process Fees in Payments Troubleshooting

Process Fees

WarrenHen1 — Sat, 20 Sep 2025 10:35:29 GMT

How can I figure out the processing fees to pass on to the customers? I see the different % and cents to charge for swipe as well as manual, but when I figure them it always seems I get shorted on my end. So for example, for a manual enter-charge is $400. I add the 3.5% + .15 so total charge is $414.15. but then it only gives me $399.50. Am I figuring it wrong? Any suggestions?

Re: Process Fees

alexandriak — Thu, 02 Jun 2022 18:14:09 GMT

You'll want to charge a little bit more so that you aren't shorted.

Make sure this is something you can do in your state, some states do not allow you to charge customers for using credit cards.

Re: Process Fees

Candlestore — Thu, 02 Jun 2022 22:53:02 GMT

@WarrenHen1 ;

The problem with trying to calculate the exact rate Square charges to charge a customer is... In your example of $400 dollar Item, then add the 3.5% for Manual entry plus the $0.15 for the transaction fee this would be :

$400x1.035 +.15 = $414.15 as you stated. BUT if you ring up that as the sale to have the added Fees included now Square is charging the 3.5% on the $414.15 not just the $400 you originally started with.

So if you have to take the 14x.035 = $0.49 additional off your sale (+/-) rounding errors.

So if you want to charge the processing fee, my suggestion is increase your price by 5%

Your $400 item will now be $420, Give a 5% Cash Discount brings cash sale back to $400

CC card customers would pay $420.

Square would charge you 420x.035+.15= $14.85

$420-14.85 = 405.15

but on a $4 sale ??

4x.035+.15 =.29 for the Square fee

would be 7.25% effective rate or .29/4.00

And at Squares Minimum CC transaction of $1 you would be at an effective rate of 18.5% using your transaction information from your original question.

This is why some stores limit what will be accepted on a credit card. Usually something like a $5 or $10 minimum transaction for CC.

Again make sure you can Legally add or give a cash discount for your area.