How does Pinch calculate the fees when surcharging customers?
Surcharge fees are calculated in a different manner to Merchant Fees (Which you can find on our pricing page) and are not directly displayed to payers as the Weighted Average fluctuates based on the value of the invoice.
How surcharge fees are calculated by Pinch.
Some merchants choose to pass on the Pinch merchant fees to their customers (the payer) in the final charge which is calculated as part of the the gross amount. This takes into account that increasing the final amount also increases the Pinch fee based on GST/VAT and Pinch's Flat fee plus a percentage of the total charge. This is calculated below.
The flat fee and the total charge percentage must be factored into the final charge amount to ensure that you receive the desired amount after Pinch deducts the fee from the charge.
Put simply, when you choose to surcharge your customer, they pay the fees on your behalf, and those fees are not the same exact rate that you as a Merchant pay. You should never quote your clients your Merchant rate, as this is not truely reflective of the final fees once the surcharge calculation taken into account.