Are Square's processing fees calculated before or after Taxes?
The fees are calculated on the total being processed with the Credit Card companies. So that includes any taxes or fees you are applying to a sale. If it is a $90 sale with 10% sales tax then it is a total of $99 on which the fee would be based.
Thanks.
Hi KayDeeBee,
Fees are based on the TOTAL Amount of the sale (which would include Sales Tax if applicable).
jk
Thank you.
Credit card Processing fees and Square Processing fees are all based on the total collected. It's a hidden cost of doing business that unfortunately we are forced to factor in when it comes to processing costs and cost of doing business.
Much like all processors charge you even when it includes tips, the overall amount is what they're charging based on.
On a $100 sale with a 6% sales tax I am collecting $106.00. Assuming a 2.6%+0.10 transaction I'm paying Square $2.85 in processing fees. Assuming it was based on a pretax amount Square would be taking $2.70 in processing fees.
For sake of my sanity I just assume they're taking 5% of my sales and another 6% for taxes, that way I'm pleasantly surprised with whatever meager scrapings I'm left after my cogs and rent.
Square takes peanuts while my landlord and vendors/utilities take whatever is left.
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