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Calculating Fees on Payment Gateways
Payment gateway fees can be worked out automatically for each order and posted to Xero as a bill, on the expense account you choose for that gateway.
Shopify Payments needs no fee set up. Shopify reports its own fee on each order, so the gateway shows Set by Shopify. Shopify POS fees are only reported in some regions. If your in-person sales come through with no fee, click Add POS rate in the Shopify Payments row and enter your in-person card rate. Where Shopify does report the fee, that fee is used.
How to Set Up Fees for a Gateway
- Open Setup - Payouts.
- Find the payment gateway in the table. If it isn't listed, click Add payment gateway and pick it in the new row.
- Make sure the Fees switch is on for that gateway.
- Under Fees go to, click each line to choose the Xero expense account for the fees, the tax rate on them, and the supplier the fee bills are addressed to.
- Click Fee per order and enter what the gateway charges you: a percentage, a fixed amount, or both. Enter the rate with tax included. If you are unsure, check your gateway statement or ask the provider.
- Click Save in the bar at the top of the page.
From then on, every order paid through that gateway and posted to Xero gets a bill for its fee. The example under the fee boxes shows the fee on a $100 order, so you can check your rate before saving.
If the fees in Xero don't match your statement, see Why your payment gateway fees don't match. For the other settings on this page, see Setup Payouts.
Note: These fees are payment provider gateway charges. If you're using an external payment gateway separate to Shopify or Paypal, Shopify charges an additional fee that can range between 1-2% depending on your region. This fee appears in your monthly Shopify bill and is not part of this calculation given it's a separate charge by Shopify and not the payment gateway provider.