Credit card fees charged on authorized amount, not captured

NickCMM
Tourist
10 0 3

Has anyone else noticed that the Shopify credit card fees are charged on the Authorization amount, regardless of what the Captured amount is? This would be for those that are setup to manually capture payments.

We've had a few instances where customers accidentally added items in their order that didn't mean to, so we cancel them and then capture the net amount (actual sale amount).  Despite the capture amount being less, what the customer is actually paying us, Shopify credit card rates are still based on the Authorization amount.  Seems unusual to me. 

 

So if a customer places an order that was "Authorized" for $10,000, then decides to cancel several items and only $1,000 is "Captured" (the actual amount of sale), I'm on the hook for fees based on the $10K and not $1K ??

Replies 8 (8)

NickCMM
Tourist
10 0 3

This was an oversight on my part.  The full amount authorized was listed in the payout, as well as a refund, which made it tough to differentiate.  The credit card fees were charged on the lower, correct amount.  Sorry for confusion

MNgrant
Shopify Partner
9 0 0

I am trying to set a limit on an order authorization. I had a customer run three separate transactions for the same items for $2,000 per charge. The items were in high demand so they were on backorder nd the orders needed to be cancelled. I was left with the 2.6% credit card processing fees and no sale. So, at the threshold of $1,000 a order can be authorized but not charged unless approved would be the goal to keep from loosing out on a sale and the associated processing fees. Let me know if you have any ideas on how to solve this issue. 

NickCMM
Tourist
10 0 3

I'm not an expert, but we had a similar issue and I set the payments to be captured manually.  I then setup a Flow (shopify flow app) to capture payments on orders automatically given certain conditions were met.  Just a thought.

MNgrant
Shopify Partner
9 0 0

Thanks, NickCMM. Yes, I was looking into the flow app. I was chatting with support, but they were not sure how to do it. It looks possible, but it depends on the threshold that Shopify uses to charge you the fees. I was told my fees we not refundable since the order was submitted and completed in the capture process. I am not sue how to set a pre-authorization with out getting charged the fees.

 

NickCMM
Tourist
10 0 3

I assume there must be a condition where you can set the flow to not capture if the order exceeds a certain amount.  Start with "order created", then "check if" order total exceeds this amount is an option. Then "do this" Capture Payment.  I haven't personally seen an order total option, but there are so many other options I'd be surprised if it didn't exist.

NickCMM
Tourist
10 0 3

Another option is to set payments to capture manually and do it yourself.  You can check each other to legitimize it and then capture, cancelling any others with issues.

MNgrant
Shopify Partner
9 0 0

I did manual captures a long time ago. I found capturing a payment was a step my employees sometimes missed. Then I had to contact all of the customers that got free products and let them know we still needed to charge their card. They all paid but I don't think anyone appreciated paying later. Not good for return customers.

NickCMM
Tourist
10 0 3

If you're higher volume, it's not ideal.  The Flow option would be ideal.