How to Manage Credit Card Surcharge Fees in SPARK MEMBERSHIP
Credit card surcharge fees allow businesses to pass some or all of the cost of credit card processing to customers. In SPARK MEMBERSHIP, you can configure the surcharge percentage and fixed fee, control where the surcharge applies, and update individual invoices or memberships as needed.
Set Up Credit Card Surcharge Fees
To configure surcharge fees:
Log in to SPARK MEMBERSHIP.
Open Point of Sale settings.
Locate the surcharge or pass on fees settings.
Enter the applicable:
Percentage fee
Fixed fee amount
Enable the credit card surcharge option.
Apply the surcharge to the appropriate memberships, invoices, or checkout pages as needed.
Make sure the percentage and fixed fee values match the rates that should be passed on. If you are unsure of the applicable processing rates, review your merchant statement or confirm them with your payment processor.
How the Credit Card Surcharge Is Calculated
SPARK uses the percentage fee, fixed fee, and transaction subtotal when determining the surcharge amount. The calculation can be represented as:
pr = 1 - (percent / 100)
CC Surcharge = fixed fee + ((subtotal / pr) - subtotal)
Example
For a $14.00 subtotal with a 5% surcharge and a $0.25 fixed fee:
Step 1: Calculate pr
pr = 1 - (5 / 100)
pr = 1 - 0.05
pr = 0.95
Step 2: Calculate the surcharge
0.25 + ((14 / 0.95) - 14)
0.25 + (14.74 - 14)
0.25 + 0.74
Credit Card Surcharge = $0.99
This calculation helps account for both the percentage-based fee and the fixed fee.
Manage Surcharges on Invoices
If surcharge fees are enabled by default for invoices, you can turn the surcharge off for an individual invoice when needed. This allows you to control which invoices receive the surcharge without changing the default configuration.
Manage Surcharges on Memberships
To configure surcharge fees for memberships:
Go to Point of Sale settings > Settings.
Scroll to the pass on fees section.
Configure the surcharge amount.
Select where the surcharge should apply.
Existing memberships may need to be updated individually to include the surcharge.
Update Surcharge Settings
If the surcharge percentage or fixed fee changes:
Open the left-side menu.
Select Point of Sale settings.
Locate the surcharge settings.
Update the applicable percentage or fixed fee.
Save the changes.
If a large number of existing memberships need to be updated, follow the current Spark support process for determining whether a bulk update is available.
Compliance and Best Practices
Surcharge requirements can vary based on location, payment processor, and other applicable rules. Before enabling or changing surcharge fees:
Confirm the applicable surcharge requirements for your business.
Make sure the configured percentage and fixed fee are accurate.
Verify that surcharge settings match the intended payment-processing costs.
Review existing memberships if surcharge settings have changed.
Incorrect surcharge settings can result in customers being overcharged or undercharged.
Troubleshooting
The surcharge amount looks incorrect
Verify:
The percentage fee
The fixed fee
The transaction subtotal
The surcharge settings in Point of Sale settings
Use the surcharge formula above if you need to validate the calculated amount.
Existing memberships are not applying the surcharge
Review the membership details and confirm that the surcharge is enabled. Existing memberships may require individual updates depending on how they were originally configured.
I need to update many memberships
Follow the current Spark support process to determine whether the memberships can be updated in bulk.
Before You Finish
Confirm that:
The surcharge percentage is correct
The fixed fee is correct
The surcharge is enabled where intended
Existing memberships have been reviewed if necessary
The calculated surcharge amount is accurate