Adding Surcharge Fees on your payments in Pay-It allows businesses to automatically add surcharge fee amounts (percentage-based, fixed, or both) to sales orders and invoices in Microsoft Dynamics 365 Business Central. These surcharge fee lines can then be passed on to the customer, ensuring that payment processing costs are accurately reflected and managed.
Warning: It’s prohibited to charge your customer transaction processing fees in certain regions. You are responsible for complying with your local surcharge laws and regulations. You can learn more about this in the US and Australia.
Payment method surcharge setup
Each Payment Method supports surcharge configuration with the following fields:
- Pay-It Surcharge %: Set a percentage surcharge fee to apply.
- Pay-It Surcharge Amount (LCY): Set a fixed surcharge fee in local currency.
- Pay-It Surcharge Amount Limit (LCY): The maximum surcharge fee amount that can be applied.
- Pay-It Surcharge G/L Account No.: The G/L account where surcharge fee amounts will be balanced.
Add a Surcharge Fee Line before posting
The Add a Surcharge Fee Line page action on the Sales Order or Sales Invoice card allows you to insert a surcharge fee line directly onto the sales order or invoice. The surcharge fee is calculated automatically and can be based on either a percentage, a fixed amount, or a combination of both, depending on the setup of the selected payment method.
Adding the surcharge fee line is optional. During posting, Pay-It will automatically recalculate the surcharge fee amount and create the line to apply the fee to the order.
Managing Surcharge Fee Lines
Surcharge fee lines are only added when the selected Payment Method on the order has a “Pay-It Surcharge %”, a “Pay-It Surcharge Amount (LCY)”, or both. If the Payment Method is changed after a surcharge fee line has already been detailed on the order, Pay-It will automatically delete the line or display an error if it has already been paid from a Prepayment Invoice.
Posted Invoices and Prepayments
When a Prepayment Invoice is posted with a surcharge, the “Posted Invoice No.” field will be linked on the related sales line for traceability. In cases where multiple prepayments have been paid for the same order, only the final surcharge fee line will be transferred and visible on the final Posted Sales Invoice. Only the most recent surcharge fee line appears on the invoice; each partial surcharge fee is still applied to the total amount.
Surcharge fee processing with Payment Links
When posting an order or invoice with Payment Links, the surcharge fee appears as a comment line and does not affect the total order amount. When the payment link is later paid, the surcharge fee is balanced automatically to the ledgers via:
- Background Job Queue,
- Manual action on the Posted Sales Invoice.
When posting an order or invoice with Credit Cards & Reader Payments, the surcharge fee line is created as a G/L Account line, ensuring that it contributes directly to the total amount of the order.
Pay-It Entries
The Pay-It Entries include information regarding the surcharge that was applied to the payment. These field are:
- Surcharge Fee Amount
- Amount Including Surcharge Fee
- Actual Processing Fee
- Net Amount
- Amount Refunded
- Amount Refunded Including Surcharge Fee
Example Workflow
- Go to your Payment Methods and configure the Credit Card, Reader, or Payment Link payment method with:
- 2% surcharge fee,
- $5 maximum,
- G/L Account for surcharge fees.
- Create a Sales Order/Sales Invoice and select Credit Card as the payment method.
- Choose Add a Surcharge Fee Line.
- The surcharge fee line is calculated and added automatically to the order/invoice and is included in the total amount.
- Post the Sales Order.
- The surcharge fee line appears on the Posted Sales Invoice.
- Process a refund.
- The refund includes the surcharge fee amount in Amount Refunded Including Surcharge Fee.
