🛠️ How to Pass Payment Processing Fees to Customers
⚙️ Navigate to Payment Tax Settings
Go to Payments → Settings → Taxes.🧾 Create the fee as a tax
Due to system configuration, this fee must be added as a tax.⚠️ Be careful how you name the fee
Labeling this as a card processing fee increases the risk of chargebacks with Stripe and Square.
We recommend naming it something like “Payment Processing Fee.”💳 Set the correct percentage
We recommend a 3% fee.
Since Stripe and Square charge 2.9%, setting it slightly higher helps demonstrate that you are not directly passing their fee to the customer.📝 Add a brief description
Use something short and neutral, such as:
“Non-cash payment transaction fee.”➕ Click Add
This saves the fee in your system.
(It is not yet applied to your products — the next step explains how to do that.)📦 Attach the fee to your products
Go to Products → Products.
Open each product, scroll down to Attach tax rates, and select:Your regular tax
Your payment processing fee
Be sure to save each product.
🚫 Exclude security deposits
Do not apply this fee to security deposits.
Security deposits are fully refundable and cannot legally have taxes or processing fees applied.
💡 Pro Tip
Wording matters. Charging card fees is technically a penalty to your customers, which increases the chance of chargebacks, disputes, and lost revenue. Using neutral language and a percentage slightly different from Stripe or Square’s exact rate helps reduce these risks while keeping your pricing transparent and compliant.