Why doesn’t the math match 2.9% + $0.30 exactly?
Credit card processing fees are 3.9% +$0.30 for the Growth plan, reduced to 2.9% + $0.30 per transaction for the Enterprise plan. However, this fee is applied to the total amount charged, not just the original invoice amount.
To ensure your business receives the exact invoice amount, the system uses a gross-up calculation.
💡 Gross-up fees
You increase the total charge upfront so that after fees are taken out, you still receive the exact intended amount.
Example: Why $100 Doesn’t Equal $103.20
Let’s say you want to collect exactly $100.00.
A simple calculation might look like:
2.9% of $100 = $2.90
$0.30 fee
= $3.20 total fee
Expected total: $103.20
However, this is incorrect because the fee would also apply to that $3.20.
Instead, the system calculates the total so that:
After the 2.9% + $0.30 fee is deducted
You still receive exactly $100.00
This results in a slightly higher total (e.g., $103.30).
Example Calculation
Invoice amount: $100.00
Add fixed fee: $100 + $0.30 = $100.30
Divide by (1 - 2.9%): $100.30 ÷ 0.971 = $103.30
Result
Customer is charged: $103.30
Stripe fee deducted: $3.30
You receive: $100.00
Note:
Small differences are expected due to:
Fees being applied to the full charged amount
Rounding to the nearest cent
Why are there small rounding differences?
Payment processors like Stripe:
Calculate fees on the total transaction
Round to the nearest cent at specific steps
This can result in a few cents difference compared to manual calculations.
Important:
These rounding differences are normal and expected across all credit card processors.
How should I explain this simply?
Here’s a clear way to explain it:
Credit card fees are 2.9% + $0.30
The fee is applied to the total charge, not just the invoice
The total is adjusted so your business receives the exact amount
Small differences come from rounding during processing
Example explanation:
“To cover credit card processing fees, the total is slightly adjusted so we receive the exact invoice amount after fees. Because the fee applies to the full transaction and is rounded, the final number may differ slightly from simple math.”
Mike's Recommendation
If you pass along processing fees, you’re telling the customer “this is an extra cost,” which creates friction and makes you look transactional instead of professional. If you just raise your prices 3–5%, you maintain a clean, premium experience and most customers won’t even notice—because they’re buying value, not line items.