How does the extra fees work/get charged?

  • Hi,

    I would like to know, how the extra fees get charged. Does it convert the total amount the customer needs to pay by adding the fixed amount or percentage to the checkout price and sends this amount to the payment gateway eg Stripe for processing, or does it actually change the amount that the payment processsor charges? Here is what I mean:

    If the payment gateway charges 10% for sake of easy calculation, and 10% of $100 is $10, then usually, the customer pays $100, and the payment gateway would charge $10 of the $100 that the customer pays, leaving the shop ower with $100 -$10 = $90.

    I would like to know what this plugin does:

    1. Does it add the 10% to the final checkout price so that the customer sees and pays $110, then the payment gateway continues to charge 10% of that payment (ie it is now 10% of $110, which is not $10 but $11, and $110 – $11 = $99)
    2. Or does it somehow charge the customer the total of $110 by making it the result of the original price of $100 + 10% of that original price, and forces the payment gateway to take 10% of the original price of $100 which is $10, so that the shop owner takes $100 as they should, and the additional $10 goes to the payment processor, and the customer still pays $110?

    Thank you

Viewing 2 replies - 1 through 2 (of 2 total)
  • Plugin Support komal-maru

    (@komal-maru)

    Hi @icecreamjelly,

    I apologize for the delay in getting back to you.

    From our plugin, the fees are added to the final cart total before being passed on to the payment gateway. So, in this case, it would follow scenario 1, where the customer pays $110, and if the payment gateway charges 10%, the store owner would receive $99.

    Yet, I’ll confirm this with the team on Monday and update you if there are any changes to this information.

    Thread Starter icecreamjelly

    (@icecreamjelly)

    Hello @komal-maru,

    I was wondering if there had been any updates to this. If, as you said, the situation is like in number 1, then that would mean the calculated surcharge is added on top of the total payment that the customer has to pay, then the real gateway will then charge their surcharge on top of that (ie the gateway surcharge will always remain at the top level of charges) as opposed to calculating it, charging the total, and then subtracting that surcharge from the total. This would make the payment gateway fee plugin somewhat useless: if this plugin simply calculates what a 10% surcharge of a $100 product is and then adds it to the product price to create the final purchase price of $110, and then the gateway charges 10% of THAT new total, then all the plugin does is calculate and add a percentage to the product price, something we can do manually, it doesn’t actually charge a gateway fee. I would like to be sure before I use this plugin.

Viewing 2 replies - 1 through 2 (of 2 total)
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