RJSIGKITS
Board Regular
- Joined
- Apr 15, 2013
- Messages
- 109
Hi Guys.
So, I'm really confused here, in that I am trying to work out a formula that tells us what we need to charge a customer to cover our card processing fees.
Sounds simple enough - add the processing fee percentage to the sale, right?..
Wrong, because when I then process the transaction to include the fee, I get charged on the total transaction, so in a sense, paying fees on fees....
EG:
Customer order Value is £5,000
Card processing fee is 2.75%
2.75% of £5,000 is £137.50 - Total charge to customer of £5,137.50
To Process the £5,137.50, I get charged 2.75% on that, which is £141.28 - so I only get £4,996.22 of my order value.
Okay, granted, on the smaller individual orders it's not so important, because we're only talking a few pounds here or there, but on larger orders, and on a decent volume of orders, this actually adds up to quite a lot of extra money to throw away.
I need two excel Formulas that will calculate accurately the amount I need to charge my clients in order to still take home their order value after processing fees (On this example, the full £5,000):
I need one to work it at the 2.75% as described here, as well as one to work out the fees on a transaction with higher fee % (If I Have to key in the card number, as this is considered high risk) at 3.4% of the order value. (It also charges me 20pence in this instance, but I think I can handle a few 20ps here or there.)
Please help, because I'm tearing my hair out, here!
Thanks in Advance
Regards
So, I'm really confused here, in that I am trying to work out a formula that tells us what we need to charge a customer to cover our card processing fees.
Sounds simple enough - add the processing fee percentage to the sale, right?..
Wrong, because when I then process the transaction to include the fee, I get charged on the total transaction, so in a sense, paying fees on fees....
EG:
Customer order Value is £5,000
Card processing fee is 2.75%
2.75% of £5,000 is £137.50 - Total charge to customer of £5,137.50
To Process the £5,137.50, I get charged 2.75% on that, which is £141.28 - so I only get £4,996.22 of my order value.
Okay, granted, on the smaller individual orders it's not so important, because we're only talking a few pounds here or there, but on larger orders, and on a decent volume of orders, this actually adds up to quite a lot of extra money to throw away.
I need two excel Formulas that will calculate accurately the amount I need to charge my clients in order to still take home their order value after processing fees (On this example, the full £5,000):
I need one to work it at the 2.75% as described here, as well as one to work out the fees on a transaction with higher fee % (If I Have to key in the card number, as this is considered high risk) at 3.4% of the order value. (It also charges me 20pence in this instance, but I think I can handle a few 20ps here or there.)
Please help, because I'm tearing my hair out, here!
Thanks in Advance
Regards
