How to Pass Payment Processing Fees to Customers in WordPress?

When processing payments online, businesses incur fees from payment gateways and financial institutions. To offset these costs, some businesses choose to pass payment processing fees to customers. In WordPress, this can be accomplished through various eCommerce plugins and methods.

However, before implementing this strategy, it’s important to consider legal, ethical, and customer satisfaction implications. Here’s a guide on how to pass payment processing fees to customers in WordPress, including best practices and considerations.

1. Understand the Legal and Ethical Considerations

Before passing payment processing fees to customers, ensure you comply with legal regulations and industry standards. Consider the following:

• Legal Compliance: Some jurisdictions prohibit surcharging customers for payment processing fees. Check local laws and regulations to ensure compliance.
• Ethical Practices: Charging customers extra fees can impact customer satisfaction. Consider how this might affect your brand reputation and customer loyalty.
• Transparency: If you decide to pass fees to customers, be transparent about the additional costs. Hidden fees can lead to customer dissatisfaction and legal issues.

Read: Top WordPress Plugins for Online Stores

2. Choose an eCommerce Plugin for WordPress

To pass payment processing fees to customers in WordPress, you’ll need an e-commerce plugin that supports fee adjustments. Popular eCommerce plugins for WordPress include:

• WooCommerce
• Easy Digital Downloads
• WP Simple Pay

Each plugin offers unique features, so choose one that aligns with your business needs. This guide will focus on WooCommerce, a widely used eCommerce plugin with extensive customization options.

Learn more: Selling a Single Product Online with WordPress

3. Add a Surcharge for Payment Processing Fees in WooCommerce

To pass payment processing fees to customers in WooCommerce, you can use additional plugins or custom code. A common approach is to add a surcharge at checkout based on the payment method. Here’s how to do it:

Option 1: Using a Plugin

Several plugins allow you to add surcharges to WooCommerce. Popular plugins for this purpose include:

• WooCommerce Fees and Discounts
• WooCommerce Extra Fees Plugin
• YITH WooCommerce Dynamic Pricing and Discounts

Here’s how to add a surcharge using the WooCommerce Fees and Discounts plugin:

• Go to Plugins ⟶ Add New in your WordPress dashboard.
• Search for “WooCommerce Fees and Discounts.” Click Install Now ⟶ Activate.
• After activating the plugin, go to WooCommerce ⟶ Settings ⟶ Fees.
• Click “Add Fee” to create a new fee for payment processing.
• Name the fee (e.g., “Payment Processing Fee”) and select the calculation method (fixed amount or percentage).
• Configure additional settings, such as the fee amount and applicable payment methods. Save your changes.

Place a test order to ensure the surcharge is applied correctly at checkout. Verify that the fee appears transparently on the invoice and order summary.

Option 2: Adding Custom Code

If you prefer to add custom code to WooCommerce, you can use WordPress hooks to add a surcharge at checkout. Here’s an example code snippet to add a fixed fee for a specific payment method:

/**
* Add a fixed fee for a specific payment method
*/
function add_fixed_fee_for_payment_method( $cart ) {
// Define the payment method to which the fixed fee will be applied
$target_payment_method = 'cheque';

// Define the fixed fee amount
$fixed_fee_amount = 5; // $5 as an example

// Check if the target payment method is in the cart
if ( is_admin() && ! defined( 'DOING_AJAX' ) ) return;
if ( ! is_checkout() || ! WC()->session ) return;

$chosen_payment_method = WC()->session->get( 'chosen_payment_method' );

if ( empty( $chosen_payment_method ) || $chosen_payment_method !== $target_payment_method ) {
return;
}

// Add the fixed fee to the cart
$cart->add_fee( __( 'Fixed Fee', 'your-textdomain' ), $fixed_fee_amount );
}
add_action( 'woocommerce_cart_calculate_fees', 'add_fixed_fee_for_payment_method' );

This code snippet adds a $5 fee for PayPal payments. Adjust the logic and amounts as needed for your business.

4. Communicate the Surcharge to Customers Transparently

To avoid confusion and maintain customer satisfaction, communicate the surcharge transparently. Consider the following best practices:

• Display Fees at Checkout: Ensure the surcharge is displayed clearly at checkout, so customers understand the additional costs before completing the purchase.
• Explain the Reason for the Surcharge: Include a brief explanation of why the fee is being added. This can help customers understand that the surcharge covers payment processing costs.
• Provide Alternatives: If possible, offer alternative payment methods that don’t incur surcharges. This gives customers flexibility and may reduce pushback against the fee.

Transparency and clear communication are key to maintaining customer trust and avoiding negative feedback.

Know more: How to Prevent Overselling Out of Stock Items in WordPress

Conclusion

Passing payment processing fees to customers in WordPress requires careful consideration of legal, ethical, and customer satisfaction factors. By using eCommerce plugins like WooCommerce and additional plugins for adding surcharges, you can implement this strategy effectively.

However, it’s essential to ensure compliance with local laws, maintain transparency, and communicate the surcharge to customers clearly. With the right approach, you can cover payment processing costs while maintaining a positive customer experience.