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Strands of love
February 24, 2025
Question

How to account for surcharge income

  • February 24, 2025
  • 1 reply
  • 0 views

When we charge a customer and they use certain cards it charges them a surcharge on my books Will this income just go in my non taxable income? Thanks. 

    1 reply

    FishingForAnswers
    FishingForAnswers
    February 24, 2025

    @Strands of love   Theoretically, it should be treated as regular income, not that it hurts you any.

     

    While you do receive the surcharges, I expect your merchant service provider takes the surcharges back out for themselves later as part of your Merchant Account Fees.

     

    So, it washes out. $100 in fee income versus $100 in merchant fees equals $0 profit, effectively.

    S
    Strands of love Author
    February 24, 2025

    Yes we just pay it back to the bank and it goes under bank charges and fees they automatically pull it from our bank account 

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