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scottp@amdistributors.com

Adding credit card processing fees to invoices

Posted By

Wondering if anyone can recommend a solution for adding a 2% credit card processing fee to invoices for customers paying by credit card? Some of the dilemmas I am facing is automating the process. For example when a salesperson writes an order and it is sent to the warehouse for shipment the order amount needs to be pre-authorized for the order total plus the 2% processing fees. Additionally there could be backorders and freight added to the order thus changing the total. In a perfect scenario there would be a way to calculate the total automatically.

Any recommendations or examples of others doing similar scenarios on Sage 2016 would be appreciated.

Thanks

Scott Payne

  • Since it looks like you are using Sage 100, I am going to move this post to that Support Group so that other users of this software will see it and can offer you their thoughts and insight.

    Thanks,
    Derek
  • We must do the same when customers pay their open invoices by Credit Card after taking the full duration of their net day terms.
    We created an item code of "/CRCD" to use for CREDIT CARD PROCESSING FEES. This is linked to a GL account that captures and reports Bank & Merchant Fees.
    The proper amount has to be calculated (currently by manual process as we are not automated for this variable amount) and entered on the EXTENSION box of the order or invoice. Funds are collected by the hit to credit card and then posted to proper GL bucket to capture such additional 'transfer' fees. We also provide a copy of this invoice to the customer as it will show as part of their annual expenditures for their annual filings.
  • in reply to Dean @ MRI
    While not the exact same thing, I have done something similar by using a negative discount percent on the totals tab of the invoice. This of course assumes that you are not using the discount for something else. The discount percent would have to be entered manually.

    If it needs to get fancier, you would have to do some scripting.
  • in reply to TomTarget
    Thanks for the reply Dean,
    I did explore this scenario already but the "Discounts" in Sales order post values to the same account used by AR discounts. Since this is ultimately an income it needs to post to a different account. Other issues I face with this overall plan is automating the process. I need it to not rely on action from a salesperson. My thoughts were to somehow use a script to trigger inputting the negative value in the discount field based on the terms code or credit card payment selection. I know how to write crystal reports but never VB Scripts. Regardless the biggest hang up is that it posts to the wrong GL account and excludes freight totals.

    I can't believe more people are not doing this? It is legal in 38 states to now charge a "processing fee" for using credit cards. Most companies build the cost in the margins but that is difficult with distribution with lower margins.

    I am going to keep investigating! Thanks..
  • in reply to [email protected]
    Use a sales tax, I've used this for adding similar fees.
  • in reply to 49153
    That is a great idea but unfortunately there are instances we charge sales tax. I may explore it though..

    Thanks 49153!
  • in reply to [email protected]

    I'm looking for something automated to handle this, e.g. an Enhancement or a Script.  One potential problem with using a Script is that we'd also need to 'not' charge a fee if it's a debit card as apparently cc fees aren't allowed to be charged to debit cards; only credit cards.

  • in reply to zip

    Maybe we can use a udf checkbox for the debit card piece.

  • in reply to zip

    There may be rules as to how you can implement pricing for credit card vs cash.

    My understanding ( and I’m not an expert ) is in most cases a discount for cash is acceptable while a surcharge for credit card is not. 


    See - https://www.cardfellow.com/blog/cash-discount-eliminate-processing-fees/

    I would talk with your credit card processor on this to ensure compliance.  American Payments just introduced a new feature for their Click to Pay which I believe allows for cash discounting but they’d be best suited to answer the detailed questions on when and how that can be implemented. 

  • in reply to Wayne Schulz

    I too am using a / code and figuring it by hand.  If somebody figures out something I would love to hear about it.  TIA  Tracy

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