I’ve been using Shopify payments for over a year and just decided to check some calculations. Turns out they are charging the % for CC processing fees on the total, INCLUDING the sales tax. What?? That should not be happening. It means the CC processing fee varies depending on what the sales tax % is where you sell your items. Totally wrong to do this. Square doesn’t do this…they deduct the sales tax before calculating the processing fee. So do other payment processors I’ve used in the past. So, my question is…are all of you paying processing fees on the after tax totals, or is this an error on my account? Thanks.
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Yeah, I just noticed this too, and I can’t understand why we would be essentially charged a fee for charging a mandatory tax. Seriously, why isn’t anyone talking about this???
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Apparently, according to this article from March 2023, some states have introduced legislation to exempt sales tax from processing fees. Don’t know the current status, or if other states will follow suit. https://restaurant.org/education-and-resources/resource-library/state-bills-to-exempt-sales-tax-from-swipe-fees-would-be-huge-savings/
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I just noticed this too. We should not have to pay a fee on sales tax when we are essentially a pass through for the state sales tax.
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Right? How do we get Shopify to answer to this?
It isn’t a Shopify issue. It is the way it is handled in the state and it requires state legislation to change it. See the article I posted at the link above.
I noticed a bigger issue here, they charge even when the tax is only estimated and in the end it’s a non taxable sale (shipped to other state). Anybody noticed this?