Processing fees

[Rob7c]

I know that processing fee for invoices is 2.9% plus 30 cents, but when I add the processing fee and charge it to client I still don't get back the exact invoice total because square then charges the rate on top of the service charge again? Example below.

Invoice total $1000

Fees $29.00 + $0.30= $29.30

$1029.30 charged

Then square takes this and charges

$29.85 + .30 = 

$30.15

I get paid $999.15 which is still $.85 short of original invoice?

I don't understand why the fee gets calculated again instead of once

How do you calculate so you get back your exact invoice total?

[Arie]

Hi @Rob7c 👋
 

I understand your confusion! To clarify, Square fees charged on whatever total is, as there is no surcharge function. If you would like to pass on credit card processing charges to your customers, you can use the following to calculate what you would charge.

For Square Invoices at 2.9% + 30 cents :
Transaction amount divided by 0.971 (then add 30 cents)

E.g. $100 / 0.971 = $102.98  you'd add $2.98 +30 cents, so $3.28 as a surcharge.

Why Wouldn't you just Add 2.9%? As you know, Square's card processing fees are based on the overall transaction amount. If you're adding $2.90 to a $100 transaction, the transaction becomes $102.90, not $100. Using the above formulas accounts for this small change to the overall fee on transactions if you're adding a surcharge, getting you as close to the intended amount as possible. 

Please let us know if you have any further questions, we're happy to help.