Passing on Processing Fees to Customers

Kelly Cullum Updated by Kelly Cullum

Passing processing fees to your customers

You can pass processing fees to your customers by adding the fees to the sale amount.

Be sure to check with your legal counsel to confirm it is acceptable to pass processing fees onto the customer for your business type.

How do you calculate the sale amount to include processing fees?

Processing fees typically include a percentage (discount rate) and a fixed fee. A common example would be, 2.9% + $0.30 per transaction. To calculate the total amount to charge the customer please see the formula below. The "Target Amount" is the total amount (including fees) that you want to charge your customer. The "Gross Amount" is the sale amount prior to adding the processing fees.

In the circumstance the Gross Amount is $100 and the processing fees are 2.9% + $0.30 per transaction the Target Amount is $103.30.

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