Fees not matching

mindy · ‎10-14-2016

A transaction we processed for $150.00 was manually input so we added 3.5% (5.25) + .15 which was processed as $155.40 ($5.40 in fees) however the amount being paid to us is only $149.81. Does anyone know why?

brju2013 · ‎10-14-2016

The fees are based on the value, so you would actually want to solve for X in the equation below and then subtract 150:

X - (X(0.035) + 0.15) = 150

Simplified: 0.965X = 150.15

Therefore, X would be approximately 155.60 (exact answer is 155.595854922). So, your fee would be $5.60.

However, you need to be aware it is prohibited in some states to pass the fees onto the customer (see https://www.sellercommunity.com/t5/Questions-How-To/How-do-I-add-a-surcharge-to-my-customers-bill/m-...)

VanKalkerFarms · ‎10-17-2016

@brju2013 Love the algebra 🙂

I'l try to point out why what you did didn't work. You correctly identified the fees you would be charged on the $150 but by adding that result on top of the $150 so $155.40. But now had a new fee of $5.59 that would be charged based on the larger total. So subtracting $5.59 from $155.40 you get $149.81 which you were correctly charged.

Be very careful when passing on Credit Card fees as brju2013 stated.

Bob Van Kalker
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