Stripe Payment Fee added to order

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  • Hikamarket Multivendor Hikaserial Subscription Hikashop Business
2 weeks 2 days ago #309548

I've setup Stripe (V.2) to calculate the fee per order at 0.30 + 2.9% and this works fine except it ADDS the amount to the customer's order total when I need it not to do that. Is there a setting that I can alter?

I actually want the fee to be deducted from the amount that I use to calculate the vendor fee from. see image below. Instead it's adding it the net amount. does this work differently in Stripe (V 3.0)?

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2 weeks 2 days ago #309549

Hi,

No it works the same with all the payment plugins.
If you want the fees to be substracted, then you need to prepend the number with a minus in the settings of the payment methods.

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2 weeks 2 days ago #309609

Hi Nicolas, No, it doesn't work like that at all. See attached images.

The first is the sales order in Hikashop, the second is the sales receipt in Stripe.



This second one shows the facts.



As you can see the order value is incorrect. The customer either pays extra on top of the order price, OR they get a discount on the order price.

What actually needs to happen is that it is calculated in the same way as the VAT and deducted before the net figure but after the customer has paid the full price for the item. Then the amount left for the Vendor fee to be calculated is going to be 2.60 euros (net of the VAT and CC Fee).

I can't see any other way to do it. It MUST be treated in the same way as the VAT whichever way you work it.

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2 weeks 1 day ago #309619

Hi Nicolas

There's another issue that relates to this in that the credit card fee, whilst essential to correctly cost a sale, isn't usually shared on a bill of sale because it's only relative to the site owner and the vendor (and possibly not even the vendor). So, whilst there is a need to record this and account for it in the COGs (Cost of Goods Sold) there is, generally speaking, nowhere it needs to be displayed outside of the owner's accounting.

I mention this because it's a feature that doesn't work the way it is intended and I know you're working on Stripe V3.0 and this might still be relevant.

Unless a fix is put in place this aspect will have to be disabled because it results in incorrect values. However, it's unlikely to be useful even when fixed because of the above point.

As an aside, it is probably possible for the site owner to obtain the cost of the transaction from the payment provider's reports so it may not be necessary to include it at all if the above can't be resolved.

Regards

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2 weeks 1 day ago #309639

Hi

Sorry about this, but I've just discovered another issue with this payment setup.
Attached image explains.

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2 weeks 1 day ago #309630

Hi,

No no, the feature works as expected.
What you want is basically to add an extra line of information without changing the calculations and that's not the purpose of this feature. The purpose is to add a fee to orders based on the payment method selected in order to motivate people to choose one payment method over others (for example, bank transfers are free to receive, so you might want to offer it as a payment method without a cost while adding a 3% fee for Stripe. It doesn't necessarily need to be the same value as the fee charged by the payment gateway)
If you want to have the fee from your payment gateway match with the payment fee, then you need to adapt the percentage to take into account the fee.

So supposing the fees are: 0.30 + 2.9%
Let's take an order of 100€. That means you have a fee of 0.30 + 2.9 € = 3.20 €. So the total amount you receive is;100-3.2 = 96.8€
Then, you want to calculate it like that: 96.8 + 0.30 + 96.8 * X = 100 => 96.8 * X = 2.9 => X 2.9 / 96.8 = 2.99587 %
So you should enter a percentage of 2.99587 in your payment method with a fixed cost of 0.3 and that way, the payment fee and the total amount should correspond to what you get on the payment gateway.

If you don't want the total to change, then you can't use the "price" and "percentage" settings of payment methods. In that case, you would have to build a custom plugin implementing the "additional" system of the cart to add that information line to the carts with the calculations similar to what I described above.

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2 weeks 1 day ago #309647

Nicolas, I think you have designed a programmer function that looks good, but doesn't work for most ecommerce businesses.

I've been on thousands of eshops over the last ten years. I buy nearly all my items online. I have NEVER seen this option for the user. I wouldn't be interested in the slightest in using one system over another. In fact, 90% of the eshops I visit only have one option for payment. Nowhere in the world do the credit card companies ADD a fee to your purchase price as a buyer. They ALWAYS charge the retailer for this fee. Same with a discount for this fee - it just DOESN'T happen.

With Hikamarket there IS value to be gained in providing the VENDOR with alternative methods of payment so THEY can decide to pay less for their users's purchases, but in neither of these options is it offered as an absorbed cost and yet it should be.

You have designed a very sophisticated tool which is of no use to me in any of my ecommerce shops.

Regards

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2 weeks 1 day ago #309648

Hi,

As you said previously, the fee from the payment gateway is usually absorbed by the merchant. In that case, I don't see the point in displaying it to the customer. I've never seen any merchant with a need for that, so I'm not sure why you're trying to do it. It would only make sense to display it if you were actually charging the customer for it.
And I've seen tens of thousands of online shops in the last 10 years and I've seen at least several of them using that feature to add additional fees based on the payment method selected, even though I agree with you that in most cases you don't need that. We've added it mainly because it was already there for the shipping methods and they share the same code for calculations so it was easy to add.
Note that I remember one famous website doing this on their website as I'm using from time to time: EasyJet. They charge you a few euros more when you pay with a visa/mastercard card on their website instead of the other payment methods available.

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2 weeks 20 hours ago #309675

Nicholas,

You're quite right. The fee is normally absorbed by the merchant and I'm not trying to show the fee to the consumer (quite the opposite). If I calculate the fee the system not only shows it to the consumer, but either adds it or deducts it from their order.

I need it to do what it is supposed to do - calculate the CC fee and allocate it to the COG. Then, it goes into the total of net cost from which the sub-vendors can be paid their commission/royalties. e.g.

Item is sold for £3.99 on the front-end
Back-end calculation: - VAT £1.00= £2.99
CC fee: - 0.30 + 2.9% (0.39)= £2.60.
Royalty x 70%= £1.82 paid to subvendor.

There is zero benefit in calculating this charge unless it is allocated somewhere. There is no way to do that in Hikashop. Which is why I'm pointing it out to you so that you can either fix it, or not.

As a business (and ecommerce is a business) I need to account for all costs of goods to get to a point of profitability. The CC Fee is a real cost and it needs to go somewhere, just not to the consumer. Until you can fix that it's a non-usable feature except in 0.002% of e-shops. And that was my point. (your quote of several shops in tens of thousands proves my point).

If your programming V3.0 you should try and fix that if you can. Ideally there should be a dropdown box [allocate cost to] [VENDOR], [SUBVENDOR] or [CUSTOMER]

Regards

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2 weeks 11 hours ago #309683

Hi,

I understand what you want to do. The allocation of the payment fee to the vendor is something that could be added. That's something that would have to be added in HikaMarket since it's HikaMarket adding vendor-related features to HikaShop.
I've noted it on our end.

Thanks for your feedbacks here.

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