Stop Losing Money on Hidden Processing Fees
E-commerce merchants and freelancers often underestimate the impact of payment gateway fees on their profit margins. While a 2.9% fee sounds small, when combined with fixed transaction costs, it can significantly eat into your net revenue, especially on lower-ticket items.
How do I pass Stripe or PayPal fees to my client?
If you want to receive exactly $1,000 in your bank account, you cannot simply add 2.9% + $0.30 to the invoice ($1,029.30). Why? Because the processor will take 2.9% of the new, higher total, leaving you short. To calculate the exact gross amount you need to bill, use this formula: (Target Net Amount + Fixed Fee) / (1 - Variable Fee Percentage). Our calculator's "Pass Fees to Client" mode handles this reverse math instantly.
Are payment processing fees tax deductible?
Yes. In most jurisdictions, merchant processing fees are considered standard costs of doing business (COGS or operational expenses) and can be written off against your gross revenue during tax season. Always consult with a certified CPA.