thread Re: Queston about Processing Fees in Payments Troubleshooting

Queston about Processing Fees

BLH81 — Tue, 23 Dec 2025 17:14:27 GMT

I recently charged $30 at a nonprofit. I was charged $30.00 plus $0.98 (2.6% + $0.15) PLUS a 6.6% Processing Fee for a Total of $31.98. What is the 6.6% processing fee? Why was there $31.00 deposited to the nonprofit instead of just $30? Thank you.

Brian

Re: Queston about Processing Fees

TheRealChipA — Tue, 23 Dec 2025 18:16:09 GMT

Hi @BLH81.. I do not know what state you live in, so consider this just a best guess. Since you said non-profit, you would have to ask them. Obviously, they added the 2.6%+$0.15 to cover Square's card processing fee. Whether or not that is legal in your state I can not say. But what I can say is that THEY MUST, THEY ARE REQUIRED to post clear and easy-to-read notices about this "card surcharge." As for the 6.6% processing fee, you would have to ask them. Again, they should have clearly noted this on signs or other material. It sounds like they didn't, but you'll need to take that up with them.

One more thing. I'm going to tag the Community moderators here. Currently Square is piloting a surcharge protocol that they worked out with the card networks in order to keep us all in compliance. If this nonprofit you donated to is not in it, Square might want to know that so they can take appropriate action. But they will do so privately, if so. Please do not mention the nonprofit here.

@Kassi_@RSosebee1 @_Violet @MayaP @Summer2024 @Summer2024 @Ellie_@Katie_SQ @Laurie_@Sammie_CPlease read my comments above. Is this something Square would want to follow up on?

Re: Queston about Processing Fees

BLH81 — Tue, 23 Dec 2025 19:25:04 GMT

Thanks for the reply. I forgot to add that I charged (tapped) $30 and $31 of the $31.98 was deposited into the nonprofit account. In the Square Transaction Report, it shows $1.98 in the tax column. Seems like my total should have only been $30.98 ($30 + 2.6% + .15). Can't find any information about where that extra dollar may have come from.

Re: Queston about Processing Fees

TheRealChipA — Tue, 23 Dec 2025 19:32:42 GMT

Understood. Did you buy a product from the non-profit? If so, since you mentioned sales tax, most likely they had to charge you that. Even though THEY are tax exempt, their sales to the public rarely are. Can you post a screenshot of the receipt?

Re: Queston about Processing Fees

BLH81 — Tue, 23 Dec 2025 23:47:18 GMT

It was a $30 donation. If it was taxable $1 seems odd. I tried upload a photo but it wouldn't allow it. Let me try a screen shot.

Re: Queston about Processing Fees

TheRealChipA — Wed, 24 Dec 2025 12:22:48 GMT

Wait.... are you part of the non-profit? How is it you are showing me a screen shot from their dashboard? I am now thoroughly confused. I thought that you were the person who donated money to a non-profit asking about their fees. Now it looks like you work for the non-profit.

Regardless, the math adds up. I can not say what the 6.6% fee is. Only the person who set that up for the non-profit could say. If it was st up to have the person doing the donation pay the processing fees, it is too much, which is neither legal nor allowed by the card networks. If we want customers to pay our fees as sellers, that surcharge can't be more than the fees, ever. That is why there is an extra $1 in the deposit -- fees were $0.98, but the "processing fee" was $1.98. Hence, the extra $1.

Anyway, which ARE you -- the donator or the receiver?