Is there a way to add automatic percentage to sale, like an item?

[lakesidecabinet]

I am curious if I can create an item that automatically adds a set percentage onto a sale. Simular to gratuity, but we can set the percentage. 

[rich_glazerman]

I believe you should be able to use a Tax to do this. It can be turned on / off per transaction as you need. Unless what you want is to be able to put in a custom percentage per transaction.

[airbrushbeauty]

the problem being, when you go to tax reports, it will NOT separate sales tax from CREDIT CARD tax. So you end up owing more "sales tax" to the state. hmmm can anyone help with this?

[Amessnger · Accepted solution]

We do this by creating a tax named "Credit card convenience fee." That is how it will appear on their receipt. Always make certain to inform the customer up front so they are not taken by surprise.

[Sean]

@rich_glazerman @Amessnger - Thanks for helping out with this one. 

@lakesidecabinet - As mentioned, you could use the tax feature to add an automatic charge to each sale, but there are some considerations. If you plan to pass a fee for credit card acceptance along to your customer, you'll want to check out this article that covers requirements for surcharges. 

[lakesidecabinet]

Thank you very much for the information, it is greatly appreciated! However for the use and refernece to others, being that we are located in MN, the regulations for surcharges on credit card transaction has recently been waived as of 2015 in MN. We currently have used you suggestions and now are all set up! 

Thank you very much for you suggestions!

[Sean]

@lakesidecabinet - Glad to hear the information was helpful, and thanks for pointing out this change in your state. I will sync with our Legal and Content teams to see if we can get these details updated! 

[john36910]

Can this "Credit Card Convenience fee" be set up to automatically apply ONLY on Credit Card Purchases??

[jjgard]

No, there is not a way to add a 'tax' a.k.a. 'Credit Card Convenience Fee' to automatically apply to credit card transactions.  You'd have to ask the customer how they are paying and apply the 'tax' yourself.

[Bronze_Palms]

Create it as a tax! When transaction come through on Etsy, we have a tax set up as 11% (because we earn about 89% of the sale) so we are not recording revenue that is overshot. At the end of the year when we are doing taxes, we record that 11% as a Platform expense and it is a write-off.