Processing fee of 3.5 percent and 15 cents

[Davisber]

I can't seem to be able to capture the 3.5 percent and the 15 cents processing fees. I add it to the sale so I can pass the fees to customers and when the square fee comes out it is always more and I guess it is because square is taking fee on the fee I added in

[RHatch · Accepted solution]

Simple math,  a $100 item upped 3.5% is $103.50.  But that doesn't work because when you take 3.5% off, you are taking it off $103.50 not $100 so now instead of $3.50 it is $3.62.  You need to increase your price by 3.63%.  

Why are you keying in all the cards?  I just assume because you are working with the key in rate.  Swiping or chipping the card will reduce chargeback risk.  

Also, this is illegal in many states to charge a fee for credit card processing so you may want to check this out in the state you are in.

[smitchells2019]

So if its illegal to charge a processing fee for a credit card, Then why are you charging a processing fee?

[GlassJudy]

@RHatch didn't say he was charging a processing fee in his reply, and even if he is, he may be doing business in a state in which it isn't illegal.  This issue has been discussed endlessly here in the Community, and the calculation he cited is what many people do charge (in various ways) because it's the way to make sure you will get all of your fees reimbursed.  Yes, some states do make it illegal to pass processing charges on to the customers, but that doesn't mean that there are no ways to get around it.

[RHatch]

@GlassJudy is correct.  Basically it comes down to this.  In most states you can't charge the customer processing fees (as a line item). In other words show it or have a different price for cash versus credit.   But you can adjust your prices up to compinsate for the %.  I have a friend that increased his prices 1.5% just because he estimated 50% of his sales would go on CC versus cash.