Fees

Chris76 · ‎06-19-2017

I'm trying to understand fees for manually entered transactions.

For example, today I charged my customer over the phone $4,000.00 and since I include fee in the transaction total came up $4,140.00 ( with 3.5% processing fee).

Why am I getting $3,994.95 deposit to my bank account?

VanKalkerFarms · ‎06-19-2017

you didn't take into account that there would be a fee for processing the additional $140. Square charged you fees based on a transaction of $4,140 because that is how much you charged. to cover your fees and your additional fees on your fee you need to use 3.63% to get you to your goal of $0 cost in fees to you.

Depending on what state you are in you need to be careful charging customers credit card fees as it is illegal in multiple states. Here is a previous discusion on this topic with lots of info including forms you need to fill out to not invalidate your acceptance of visa aand mastercard payments. https://www.sellercommunity.com/t5/Questions-How-To/How-do-I-add-a-surcharge-to-my-customers-bill/m-...

here is another link. https://squareup.com/help/us/en/article/5671-can-i-apply-a-surcharge-to-square-sales

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Here is a copy paste from another one of my posts.

It is because you are taking 3.5% of the additional $3.65 also, so you have to take into account for that too.

$3.50 for CC charge

$.15 for swipe on manual

$.13 for the CC charge on the $3.50

so take your total you want to net. Times it by 1.0363 and add $.15. Your net after fees should be what you want.

Example

If manually entering a $100 sale

use 3.63% + $.15

100*1.0363=103.63

103.63+.15=103.78

charge 103.78 and your fee from square will be $3.63 + $.15 netting $100

Example

If swiping the card for a $100 sale

use 2.83%

$100*1.0283=$102.83

Charge $102.83 and your fee from square will be $2.83 netting $100

Bob Van Kalker
My Van Kalker Farms Garden Center website
My Rise'n Roll Bakery Schererville Indiana Facebook Page
My Rise'n Roll Bakery Cedar Lake Facebook Page

BBTeaHouse · ‎03-30-2018

I know the Original Post is old, but I just want to add my response for future reference.

If you want to get $4,000.00 AFTER fees (15 cents plus 3.5% of whatever number you manually type into Square), then you should charge your customer $4,145.23.

Square Fees: 0.035 x ($4,145.23) + $0.15 = $145.23

So then, $4,145.23 - $145.23 = $4,000.00 that you get to keep.

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Algebra math for calculating the amount you should charge (C) to get what you want ($4,000):

*Note: This math only applies to the fee structure Square charges for manual entry transaction.

C - ( Cx0.035 + 0.15) = 4,000

C - 0.035C - 0.15 = 4000

0.965C - 0.15 = 4000

0.965C= 4000 + 0.15

C = (4000.15) / 0.965

C = 4,145.23

So, the simplest way to calculate how much you should charge to get what you want is:

First, add 0.15 to the amount you WANT

Then, divide that number by 0.965

Finally, round the result up or down to the nearest cent.

Note*: This math only applies to the fee structure for manual entry transaction.