thread How do I calculate the processing fees? in Archived Discussions (Read Only)

How do I calculate the processing fees?

AmerRefinish — Thu, 03 Jan 2019 18:36:42 GMT

We charge a flate rate of $150 per 1st hour, and $90 per each additional hour, and as of right now it is all manual entry. Is there a current formula to help figure out what fees we are being charged? I saw one thread with a formula, but that confused me even more:

$100 = (100 + $0.15) / (1-(3.5 / 100)) - $100 = $3.78 (total charge of $103.78)

I would like to know why using that formula is correct versus:

$100 + 3.5% ($3.50) + $0.15 = $103.65 (total charge)

The difference may not seem like much, but when the inital charge is over $5,000 it can add up.

Thank you in advance for your help with this matter.

Re: How do I calculate the processing fees?

puka — Sat, 05 Jan 2019 18:16:04 GMT

Hi @AmerRefinish - I'm not sure where the first formula came from, but it's actually a lot simpler than that. We calculate as follows for a $100 manual transaction fee:

$100 x 0.035 = $3.50

$3.50 + $0.15 = $3.65

$3.65 is your total processing fee.

For your rate of $150 for the first hour:

$150 x 0.035 = $5.25

$5.25 + $0.15 = $5.40

$5.40 is your total processing fee if your client was provided an hour's service.

You can also just look up your fees per transaction through your Square Dashboard and the calculation is done for you. Hope that helps clarify things for you. 👍