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What’s the best way to go about handing credit card processing fees onto a customer?
We currently process credit card payments using an EFTPOS machine, rather than using an integrated payments processing option. If we are to hand the processing fee onto the customer (e.g. 1.5% of the overall order), what is the best way to go about this? If a customer pays for an order before dispatch using a credit card, we can just add a non-stock item line “Credit Card Processing Fees” to the order. However, if the invoice has been sent, and the customer pays the invoice by credit card, we can’t go and add that non-stock line…
Does Acumatica have a function that can deal with this?
Daniel,
The bigger question here is 'Is it legal to charge a customer as service fee to use a credit card'? In most states, this is not allowed and will result in fines and legal hassles so buyer beware. I don't believe there is any problem with granting cash discounts on the other hand.
I 'm not aware of a way to add a charge automatically to an invoice based upon the default payment method associated with the customer.
Ok, thanks for the help Shawn. We will keep using our current process then.
Here in Australia we are allowed to hand on the credit card processing fee, on the condition that the business "is only allowed to pass on to the customer the costs that the business was charged for accepting payment of that payment type." E.g. if the bank surcharge was 1%, the business cannot charge the customer more than 1%.
It almost seems like you want some kind of "negative discount", but I'm not sure if that's possible.
There is a "free item" discount, but I don't know if it can be used to add a "not free" item to the order, like the “Credit Card Processing Fees” non-stock item line that you mentioned.
Daniel,
First, thank you for reminding me of the global reach of Acumatica. I loose site of that at times and forget that others are in different countries with different laws. Humbling and empowering at the same time. Also, thank you for being patient with my oversite.
Second, I like Tim's idea. Have you thought of using a negative discount? I'm not sure how you apply it based upon payment type but maybe create a discount code applied at the document level and set the 'Applicable To' to Unconditional.
Please note: I haven't worked with document level discounts in the past so I am not the person to advise on the set up on the Discount Code. However, I have seen negative discounts work in other systems and would at least give it a shot here.
Good luck and let us know what you find.
Hi,
I thought I would throw my hat into the ring on this.
I've just created a negative Document discount that the user will chose to add at the time of Sales Order creation. I've used an unconditional discount as it can relate to anyone.
The set-up of the discount also has the advantage of Sequence Number, so you can add multiple charges if you have them. i.e Visa -2.5%, Mastercard -1.5%. I know it may not happen, but it is there if needed.
Once added you link it on the Sales Order > Discount Details tab, which will create the surcharge. NB: It is worth mentioning that in NZ, the credit card surcharge is taxable, so no need to get fancy trying to remove it from the taxable total.
The last thing to mention, which is extremely important from an aesthetic point of view, is to do with the Pro Forma or Invoice form. It might be an idea to show the CC Charge as an extra box in the Totals area. As it stands with the default form it will show under Less Discounts as a negative amount. You should be able to hide the amount from the Less Discount box and add to another, better labelled option. This figure can then be multiplied by -1 to show a positive amount. The underlying table and field for this is SOOrderDiscountDetail.DiscountID and SOOrderDiscountDetail.DiscountAmt
Hopefully this all makes sense.
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