How Payment Processing Fees Work in Floorzap

Key Takeaways: 

• Surcharges are only applied for credit card payments.
• ACH payments do not incur any surcharge.
• Surcharges are passed through to your customer to help cover your payment processing costs.
• You still pay payment processing fees, and those are deducted from your payouts.
• Floorzap syncs all payments and surcharges cleanly into QuickBooks Online.

Step 1: Invoice Generation

When you generate an invoice in Floorzap, the system calculates the total amount due for the products and services provided. At this stage:

• No payment processing fee or surcharge is applied yet.
• The invoice reflects the customer’s total due amount before any consideration of payment method.

Step 2: Customer Makes a Payment

When the customer chooses a payment method: 

If the Customer Pays by Credit Card:

• A credit card surcharge (e.g., 3%) is automatically applied to the total.
• The surcharge is clearly shown on the payment screen before the customer confirms the transaction.
• A line item is automatically added to the invoice to reflect the credit card fee (see image below) 
• Example:
  • Invoice Total: $1,000
  • Surcharge (3%): $30
  • Customer Pays: $1,030

If the Customer Pays by ACH (Bank Transfer):

• No surcharge is applied.
• Customer simply pays the invoice total.
• Example:
  • Invoice Total: $1,000
  • Surcharge: $0
  • Customer Pays: $1,000

Step 3: Merchant Portal & Fee Settlement

In your Floorzap Payments merchant portal:

• You’ll see gross payment amounts, including any surcharges collected.
• The processing fees charged by the merchant account provider are deducted from your payouts, not shown to your customer.
  • Example:
    • Gross Payment Received: $1,030
    • Processing Fee (e.g., 2.9% + $0.30): $30.60
    • Net Deposit to Your Bank: $999.40
• The surcharge helps you recoup these fees, but your actual net revenue is always the gross payment minus the actual processing costs.

Step 4: Syncing to Quickbooks Online

When the payment is synced from Floorzap into QBO:

• Invoice is marked as paid or partially paid based on the customer's payment (including any surcharge).
• Two line items appear in QBO:
  • Revenue: The original invoice amount.
  • Expense (if applicable): This is shown as a separate line item categorized as "Credit Card Fee" income.
• You can match the net payment (after fees) in your bank feed to the QBO payment record.

If you need help reconciling specific payments or setting up surcharge tracking in QBO, reach out to support, and we’ll walk you through it!