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How checkout fees work

Understand required and optional fees, their calculation basis, and their tax treatment.

Checkout fees add a required charge or an optional service to an order. Required fees apply automatically whenever they are enabled. Optional fees, such as gift wrapping, are added only when the customer or a staff member selects them.

Choose how the fee is calculated

A fixed per-order fee is charged once. A fixed per-item fee is multiplied by the total merchandise quantity in the order. A percentage fee is calculated once from the merchandise subtotal left after product and order discounts.

What percentage fees exclude

Shipping, tax, duties, cash-on-delivery charges, online-payment discounts, store credit, and other checkout fees are not part of the percentage basis.

Tax on a checkout fee

When a tax class is selected, the matching market tax rate is applied after the fee amount is resolved. The fee amount and its tax are retained separately on the order.

Example

For 1,000 of merchandise with 200 in product and order discounts, the percentage-fee basis is 800. A 2.5% handling fee is 20. If the fee's tax class resolves to 18%, fee tax is 3.60, so the fee adds 23.60 to the amount payable.