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Processing Fees on E-commerce Store Checkout

Processing Fees allow store owners to automatically add a percentage-based fee to E-commerce checkout totals and display it transparently to customers.

Updated over 2 months ago

Who This Is For / When to Use

This article is for:

  • Store owners who want to pass payment processing or convenience fees to customers.

  • Admins configuring E-commerce checkout pricing.

  • Support teams explaining extra charges shown at checkout or on receipts.

Use this when:

  • Customers ask why a “convenience fee” appears on their order.

  • You need to enable or adjust processing fees for an E-commerce store.

What Is a Processing Fee

A Processing Fee is an optional percentage-based charge added to E-commerce checkout totals.

Key characteristics:

  • Calculated as a percentage of the total transaction amount.

  • Displayed as a separate line item at checkout and on order receipts.

  • Rounded to two decimal places.

  • Fully configurable by the store admin.

How Processing Fees Are Calculated

The Processing Fee is calculated using the following formula:

(Subtotal − Discounts + Shipping + Taxes) × Processing Fee %

Important behavior:

  • The fee is added after shipping and taxes are applied.

  • The final fee is rounded to two decimal places.

  • The fee increases proportionally with the order total.

Where Customers See the Processing Fee

During Checkout

Customers see the Processing Fee as a separate line item in the checkout summary before payment.

On the Order Confirmation Page

After checkout, the Processing Fee is shown in the order confirmation breakdown.

On the Order Details Screen

Admins and customers can also see the Processing Fee inside the order details view.

How to Enable Processing Fees for E-commerce Stores

Follow these steps to enable Processing Fees:

  1. Go to Payments → Settings → Miscellaneous Charges → Processing Charges.

  2. Toggle Enable passing processing charges to customers.

  3. Enter a Processing charge name (for example: “Convenience Fee”).

  4. Set the percentage value.

  5. Under Enable for, select E-commerce Stores.

  6. Click Save.

Important Notes and Limitations

  • Upsell products do not currently support processing fees.

  • Processing Fees apply only to new checkouts after the setting is enabled.

  • Disabling the feature does not remove fees from existing orders unless the order is editable.

  • Store owners are responsible for complying with local laws regarding payment surcharges.

FAQ

What is the Processing Fee based on?

The Processing Fee is calculated on the total amount due, including subtotal, shipping, and taxes, minus any discounts.

Can I rename the Processing Fee?

Yes. The label is fully customizable (for example: “Convenience Fee” or “Payment Processing Fee”).

Does the Processing Fee apply to all products?

It applies to standard E-commerce store products only. Upsell products are not supported.

Will existing orders update if I change the fee?

No. Changes only apply to new orders unless an existing order is editable.

Is the Processing Fee shown to customers?

Yes. The fee is clearly displayed during checkout, on the order confirmation page, and in order details.

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