How Xeroom Handles Stripe Fees
How Stripe fees are handled with Xeroom
There are two fees to consider when using Stripe. The first is a surcharge that you can add to your customer’s order ie a revenue to you and the second is the fee that Stripe charges you for the transaction ie a cost to you. These show up on an order as Fee 1 and Fee 2 below.
Surcharge – Fee 1
This is a surcharge that you add on to you order for customers who pay with Stripe to cover the costs to you made by Stripe. I suggest only using this if you can provide the customer with a no-surcharge alternative eg bank transfer so that they don’t feel forced to use it but instead see it as an option. This fee is set by you and I use the Woocommerce Booster plugin which has a module to set this – Gateways Fees and Discounts Module Options – and these are my settings. This fee will show up in Xero as an extra line on the invoice. Paypal and other surcharges that you wish to make are handled in exactly the same way.
This is how the fee appears on the customer sales invoice in Xero:
Stripe Charge – Fee 2
There are the transaction fees that you get charged by Stripe. On customer checkout Stripe feeds the actual fee back to Woo and it is displayed at the foot of the order as shown in the example above. Stripe charges a straight 2.9% + 30c but this can vary and for regular credit cards via a payment merchant account there is a full schedule of fees.
Xeroom does NOT import these fees into Xero as you can import these fees along with any other fees that Stripe charges to you directly into Xero from Stripe as a live feed. Xeroom simply takes what is needed for the creation of the customer sales invoice into Xero which does not include this fee. This fee should be posted to a direct cost line in the accounts which can be simply done in Xero by using the live feed and posting it as a total figure. The gross payment is passed through to Xero too by Xeroom as this affects the sales invoice. It is taken to the bank payment account set in Xeroom and this can then be reconciled with the Stripe transactions from the live feed. You also have all the detailed backup available in the Xero Stripe Bank which is missing nothing and so reconciles exactly. There is simply no point in us wasting resources in replicating this solid core functionality that already exists between Xero and Stripe.