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 to cover the cost of the Stripe fee 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 can 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.  In the UK it is also not allowed to charge more than the cost of using a card.  This fee is set by you and you can 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 WooCommerce and it is displayed at the foot of the order as shown in the example above. Stripe used to charge a straight 2.9% + 30c but this now varies by country and card type.  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 them directly into Xero from Stripe via a live feed,  they are also consolidated into the pay-outs.  Xeroom simply takes what is needed for the creation of the customer sales invoice into Xero which does not include this fee. Xeroom will feed the WC payments into the specified clearing account or bank account.  The clearing account also receives the Stripe pay-outs (either automatically by Stripe feed or by posting from your main bank account) so the total fees are easily identified and can then be simply posted as an aggregate amount to a direct cost line in Xero – no need to allocate them to each individual sale.   

You also have all the detailed backup available in the Xero Stripe Bank which is missing nothing and so reconciles exactly.  There are also detailed breakdowns of each pay-out given in Stripe for reference if you only wish to reconcile the pay-outs with the WooCommerce transactions in the clearing account and not use the Stripe bank feed into Xero.