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I am creating a site for a non-profit. They charge 4% extra when anyone pays with PayPal to cover the fees. I did not see a “service charge” option.
I tried using the tax option but found that even though it shows the amount with tax added on subscription items, when they go to PayPal, no tax is added. Only the base amount is charged.
Q. Is there a “service charge” option that I am just missing?
Q. If not, how can I make it charge tax on subscriptions?
Q. How then could I change the word “tax” to “service charge”?
What your client is asking for is a violation of PayPal’s User Agreement:
https://www.paypal.com/us/webapps/mpp/ua/useragreement-full
No surcharges
You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.
Your client should consider adjusting their prices up by about 2%, and letting everything average itself out. Or as suggested, you may charge 4% Shipping & Handling, but it must apply equally to all purchasers. Because PayPal is the payment processor; you are still subject to this agreement, even if a buyer is using a credit card (instead of a straight PayPal account).
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