How can I add a credit card surcharge to specific orders?

How can I add a credit card surcharge to specific orders?

Andrew_w87
Tourist
4 0 21

Hi All

Trying to find a way to add a Credit Card Surcharge to orders where customers choose to process their payment via credit card. A few things to note

1. I operate a store in an industry where margins are very low, so absorbing credit card rates is not viable

2. Similarly, I operate in an industry with a lot of competition, so simply increasing my product price or shipping price (we offer fixed price shipping) is not a suitable option

3. I have seen a number of apps suggested HOWEVER, it seems these apps can only add fees on an order in general, not based upon payment type. We also offer Direct Debit and a number of alternative payment methods, so applying a fee to all types of transactions doesn't help us either

All of my competitors who operate in the same industry get around this issue by adding a surcharge on credit card purchases (different platforms), so I need to try and achieve the same result, otherwise my stores will look more expensive to buy from over my competitors. 

I've done a heap of searching but there doesn't really seem to be any topics on this since 2019, so I'm hoping perhaps there have been some developments made in this space

Thanks in advance

Replies 76 (76)

Don
Shopify Staff
2780 199 393

Hi there @Andrew_w87!

I can confirm for you here that, as you suspect from your own checks, it would not be possible to levy a surcharge only against a certain payment method being used here.

There are fee-related apps in our app store that would allow you to add fees to orders as you've seen for yourself, but it would not be possible to discriminate in terms of which payment methods are being used in your store.

What I can do for you from here would be to file a feature request for this functionality, so our developers know this is something our merchants would like to see in the platform in the future.

You've already provided great info here on why this is important for your business, but do let me know if there's any info we can add to this request that is specific to your business needs.

This will help us to file the most accurate, useful request possible for our developers to work from.

 

Regards,

Don

Don | Social Care @ Shopify 
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Andrew_w87
Tourist
4 0 21

Hi @Don 

Thanks for your prompt response. Yes, please do file the request, as it's something based on what I've read on an extensive number of forum posts which would be well received by many.

I would expect that Shopify likely doesn't do this as a default option as they don't want to discourage customers from selecting Shopify Payments as payment option (when other options are available), but it's a catch 22 as I'm seeing this frequently as a reason for retailers moving to other platforms.

I think you've probably got all of the necessary information, however probably the only other thing I'd really like to see (which is in a similar space) would be the option to allow in-store pick-up, but be able to add a "handling fee". Reason being is that we're also a bricks & mortar shopfront, which offers installation of products that we sell. If a customer purchases something only to be shipped to them, the shipping fee covers it being sent direct from our warehouse to their address, but if they select in-store pick-up, we still have to get it shipped from our warehouse to our retail location, incurring similar cost as sending it straight to the customer, but without the cost being passed on.

I've come up with some dodgy workarounds where I can add 2 types of shipping and call one "pick-up", but it removes some of the functions (such as marking ready for pick-up) and customers are also finding confusing having to enter shipping specifics when they know they're not shipping.

I guess I'm somewhat complicating it but mentioning two separate topics on the one thread, but thought it worth mentioning as I would imagine it's in a similar area with regards to the development

Thanks again for your assistance 

Don
Shopify Staff
2780 199 393

Hi again @Andrew_w87!

Thanks so much for that info and apologies for my delay in getting back to you here.

I've been able to use the information on what you wanted to see in the platform, why it matters for your business, and what you've been doing as an alternative to file requests for both of these features internally on your behalf. 

Our Changelog page is always a great resource to keep an eye on for any updates to the platform released in the future.

Thanks again for taking the time to let us know how we can make Shopify work better for you!

Don | Social Care @ Shopify 
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POD253
Excursionist
11 0 12

Hi Don, 

This is something we desperately need. Before we switch to a different platform, is there any movement or options for passing credit card fees onto customers?

Koennn
Excursionist
22 0 29

Any update on this feature request? I hoped this feature would be included in de Winter Editions 2023, but unfortunately it didn’t. 

Seacliff_Cody
Visitor
1 0 2

Hi Don,

I'm deeply interested in this as well. We use a payment provider that offers a laybuy type service, but they take 6% of our revenue. Being able to pass this on to the customers who use it and not the rest would be a godsend.

Thanks

Don
Shopify Staff
2780 199 393

Hi there @Seacliff_Cody!

 

Thanks for adding your feedback here on this topic!

 

I've filed a request for this again based on the specific info you shared here, so thank you again for taking the time to share it.

 

The more requests for a given functionality, the more likely it will be for consideration for addition to the platform in the future.

 

While we can't confirm if a specific request will be granted or when this does seem to be a frequent one, so hopefully we'll see it join the updates over on our Changelog page someday.

 

All the best!

Don | Social Care @ Shopify 
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mabbgpaper
Visitor
1 0 2

This is something we are looking to do as well. In our area most small business are doing this and using a 3rd party. It would be phenomenal to be able to do it automatically or as an option with Shopify payments. We do not want to go to a 3rd party to be able to do this. I hope this can be something that is done quickly and I have seen multiple forums asking for this option. 

kschwarzarc
Visitor
1 0 4

Hi Don,

I would also like to check back, if there is any progress with this topic. I'm currently still deciding if shopify is the right platform for a number of customers. A feature to pass on creditcard/paypal fees would be a real help.

Shounteal
Tourist
10 0 6

Would also like to know about this. I definitely need to be able to address processing fees as a surchage with a single click!

FridgyRentals
Excursionist
15 0 30

Hi Don

Why has this not had any movement since May 2021?  There are 1000's of Shopify sites that need this.  I just had my 2 websites transferred to Shopify from Wordpress and I am so disappointed in the expense of apps, lack of functionality that Im thinking of paying again to have my sites transferred back.

Also the customer is basically non existent....this post is a classic example.

 

DKusters
Tourist
5 0 9

I'm jumping in on this topic as well, has there been any progress lately? Shopify has rolled out a number of updates lately, but unfortunately this doesn't seem to be included.

 

With increased bank fees, this has become a serious pressing issue, and I'm sure there are 1000's of shops that would be highly interested in tis feature. But since it discourage the Shopify payment method it is not likely to be introduced at all.

 

I'm considering moving to another platform as I'm getting more experience in e-commerce I recognize a number of limitations with Shopify where other e-commerce platforms are more customer focused. 

FridgyRentals
Excursionist
15 0 30

Heartily agree👍🏽

C’mon Shopify, have a listen to your customers please. We need:

 

The ability to add a credit card surcharge. 

The ability to take a credit card ‘hold’ for rental companies.  

Sooner would be better please Shopify!

CompulsionT
Visitor
1 0 1

Hi Don, please can you look into this again. So many people have been asking for this for years and still the same responses! Please sort it out. We have buy now pay later finance payment options that charge us a 6% surcharge for using their service, plus we get charged the 2% shopify fee for using non-shopify payments. So around 8% fee on items that are circa $2000 is a lot of money to waste. We cant even pass some of this surcharge cost to our customers as you guys wont listen to us and add a custom surcharge option. Only been on shopify for a year, considering cancelling our plan and changing to a different ecommerce platform if this doesnt get sorted fast!

Lor4army
Visitor
2 0 2

We are a store that is in need of being able to add a credit card surcharge.  I am a little disappointed that I have asked for this in the past and I feel Shopify is moving too slowly on getting something in place for their clients.  Credit card charges are so expensive and only going up.  Need to the help.

Andrew_w87
Tourist
4 0 21

Hi Don. 

 

Just bumping this topic to see if there has been any progress in the last 12 months? I note that lately Shopify has rolled out a series of useful updates, but disappointingly, this doesn't seem to be one. 

 

With bank fees increasing, this is becoming an increasingly pressing issue, and I think there's no doubt that there's quite a bit of interest in in this feature

 

I look forward to receiving your response

kappadragon
Visitor
2 0 1

Also interested, we are in a low-margin industry as well and need a way to pass on fees. It is now approved in Canada to pass on CC fees to customers, so this is not a question of legality.

ProsperYarn
Tourist
5 0 10

Any news on this feature being added? I am in same situation and really need to add a surcharge to certain payment methods. 

Ray32
Excursionist
12 0 13

Hey, Don! Any news on this??? I am following as I am running into a similar issue selling high-ticket items. Like local businesses, I would like to have that option to just negate all credit card fees to the customer. Those fees get big fast on larger items!

POD253
Excursionist
11 0 12

We had to add a drop down menu on the cart page - when someone selects that they want to pay with a card - a 3% fee is applied to the entire order. The catch is that it does not capture fees on sales tax. So it's a fix - just not the best one. Atleast we aren't completely losing our a$$es. 

Shounteal
Tourist
10 0 6

I have been adding it manually but it's a pain. @APOD How did you set up the drop down exactly? 

Ray32
Excursionist
12 0 13

@POD253how did you add the drop down? Thanks!

POD253
Excursionist
11 0 12

It is an app called UpCharge: Surcharges. It is considered a "cart fee". You can adjust the fee you would like to charge and apply it to the entire cart- but again, please note that this will not add a fee to tax amounts. 

POD253
Excursionist
11 0 12

This is still the number one reason we are considering leaving shopify. We have more than $2M in sales a year through our site, this feature has to be a priority. 

Andrew_w87
Tourist
4 0 21

Hey @POD253 , are you able to give any info on how you did this?

A quick google search suggests fairly advanced coding in checkout.liquid would be required, but I'm hoping perhaps you might have some sort of copy & paste coding we could try?

twobob
Visitor
3 0 23

Hi Don

 

<< Introducing a Credit Surcharge feature will INCREASE MERCHANTS profits by ~10% to 50% >>

 

The average credit card fee is 1.5% to 2.0% (and can be as much as 8% with BNPL).  The average ecommerce net profit margin is 5% to 20%.  For simplicity, let's assume Aussie merchants are paying 1.5% in credit card fees and their net profit margin is 10%.  All other things being equal, allowing Shopify merchants to pass on the credit card costs through a Credit Card Surcharge feature will increase net profit margins from 10% to 11.5%.  Or put another way, their net profit will increase by 15%.  That would be a substantial and real uplift for Shopify merchants.  (The profit uplift could be as much as 80% for merchants currently using BNPL!)

 

So many other Australian retailers (both online and offline) have credit card surcharges, so consumers are generally happy to pay them.  Introducing a credit card surcharge may lead to an increase in abandonments, or may not, but shouldn't that be up to the merchant to decide?

 

So Don - please - take this to the team and explain that introducing a Credit Card Surcharge feature in Australia (and perhaps other countries) will INCREASE your merchants profits.  It'll make them even happier, fewer will go out of business and Shopify will be lauded in the streets by Aussie online shoplify businesses when this is released!  (And you'll be a hero too!).

 

Please make this the #1 feature request.

 

Thanks, Brian

 

Some source documents for you:

"Businesses can charge a surcharge for paying by card, but the surcharge must not be more than what it costs the business to use that payment type."

Australian Competition and Consumer Commission (ACCC)

https://www.accc.gov.au/business/pricing/card-surcharges

"5% to 20% net profit margins"

6 Ways to increase profit margin for ecommerce businesses (Shopify)

https://www.shopify.com/blog/profit-margin

BNPL merchant fees:

https://www.shopify.com/blog/buy-now-pay-later

RBA on Surcharging:

https://www.rba.gov.au/payments-and-infrastructure/cards/q-and-a/payment-card-surcharging/merchants....

ProsperYarn
Tourist
5 0 10

Absolutely should be the #1 feature request. CC Fees are killing my margin.

POD253
Excursionist
11 0 12

Hi Don, 

Another year, and the same request - any update on adding this feature? 

Trish457
Excursionist
34 0 28

Hi Don It seems this has been an issue for some time. Our store uses Shopify POS and this needs to be updated. Square and other pos systems have this ability. Can you please update and push for this? Ive spoke with agents and there is a way to add a dollar amount extra charge but not a percentage. The percentage would help so we can add the fee manually but it is not a fix. As we are busy store and it would slow down checkout. Please open this issue back up. 

toddsladylove
Visitor
1 0 1

Since this has YET to be implemented- PLEASE get on it . THIS IS UTTERLY ridiculous., every other platform has this feature. If I t is not implemented I WILL Be leaving Shopify. Y'all eat us up on fees already, every app needed to run an efficient business costs, instead of being built in. RIDICULOUS. Get it together - submit the request and get it implemented SOONER rather than later. this has been an ongoing request for over 4 YEARS NOW 

 

jennaveere
Tourist
7 0 13

Any updates here? We really need this as well.

Epsryn
Shopify Partner
11 0 5

BNPL are actual thieves, taking 6% + a fixed amount from the total sale. shopify then takes 2% from the total sale, this includes shipping. So any BNPL sales are around 10-12% of the sale margin. They are disgusting thieves and they do not make customers aware how much they rip off small businesses.

On top of this, they often hold 30% of the sale as "rolling reserve" for 3 months. so they have this massive rolling reserve of money that isn't theirs that they then no doubt invest or loan out to make more money.

There should be a shopify option to add a surcharge for credit cards and BNPL transactions. In that surcharge a simple statement letting the customer know how predatory BNPL is could be included so they are aware.

How there is no option to add fees onto certain transactions is crazy, considering all competitors not using shopify do this....

jennaveere
Tourist
7 0 13

WHHHHAAAT? I guess I need to look into Shop Pay a little more because that was not disclosed. Thanks for the info.

PeterPens
Visitor
2 0 23

Hi there,

 

We are also interested in such a feature. We should be able to configure this in your application rather than going to third party apps. I don't trust the apps when it comes to the final check out page where they are entering payment information.

 

Kind regards,
Peter

TMAce
Shopify Partner
12 0 14

Any update on this?    We would really benefit from this as we want to sell products in a low margin business and would not be able to absorb credit card fees.

Trish457
Excursionist
34 0 28

Would love an update on this. It is a real issue. Other platforms have this options , Come on Shopify!!!!!!!!!!

Trish457
Excursionist
34 0 28

I think if everyone on this tread reached out to customer service every day for a week maybe they would push this through 🤷‍♀️

tenboone
Visitor
2 0 1

Bumping this up, any updates?

FridgyRentals
Excursionist
15 0 30

Hey there folks

I DO have something to report.  I have engaged a local tech firm to code an add on to my site that will bypass shopify payments and go direct to stripe AND.....wait for it....use Stripes ability to take an 'authorisation' on a customer credit card and add a surcharge.

I have an appointment to test it tomorrow so report back in a week or so how it all goes.

Cheers👍🏽

 

tenboone
Visitor
2 0 1

This is amazing news! Thanks Fridgy! 👊 Sending ease that everything works out amazing! 

Ray32
Excursionist
12 0 13

Yo! @FridgyRentals please please please tell us how it goes !!

Trish457
Excursionist
34 0 28

Does this mean you would stripes POS system to use this? 

POD253
Excursionist
11 0 12

How did this go for you??

peanut98
Visitor
2 0 1

Hello!  I was curious if your work around actually worked? I'd love a report on passing along the cc fees. 

 

POD253
Excursionist
11 0 12
Ugh, it works better than not having anything in place. We are still not
able to collect credit card fees on the tax amount - which is still a huge
concern for us. We have held out waiting for an update that will
include this feature from Shopify, no luck yet.
peanut98
Visitor
2 0 1

Could you provide some insight on how we can implement this on our site? Even if it's not including tax, I'd prefer a % increase vs other options.

Thank you!

GOTEMKICKS
Tourist
3 0 0

any word on this ? 

 

KymLeibham
Tourist
10 0 8

No update at all. So disappointing. 

Koennn
Excursionist
22 0 29
Nothing in the latest update 😞