How Most Subcharges Work
Most subcharges are calculated based on the rate for the subcharge applied to the Extended Unit Cost. In the example below, the Extended Unit Cost was $1,000 since there was only the 1 chair. Ten percent of that amount is the $100.00 shown.
How The Credit Card Processing Fee Subcharge Works
The Credit Card Processing Fee Subcharge will calculate the total cost of the item including subcharges and sales tax, then multiply that sum by the subcharge rate.
In the example below, the total price for everything, including the Credit Card Fee, is $1,754.29
This means a 3% credit card processing fee for this item would be $51.10.
Want to understand why?
The sell price, as you can see above, is $1,754.29
Remove the credit card fee from this amount: 1,754.29 - 51.10 = 1,703.19
The amount of $1,703.19 is what you would sell the item for were the client to pay with cash (check or ACH payment).
However, if you are going to allow the client to pay by credit card, you might want to mark it up 3%.
To do this, multiply the cash pricing by 0.03: 1,703.19 x 0.03 = 51.10
So $51.10 is the amount of the credit card fee and is the amount the Credit Card Fee subcharge will calculate for you automatically.