If you’re an event organizer in Ireland using the “Pass Fees On” option, you may notice a small difference of 1 cent, either more or less, on some transactions. This can happen even though the buyer is supposed to cover all Square fees. Here’s why these tiny mismatches occur and why they’re a normal part of payment processing.
Why These Differences Happen in Ireland #
In Ireland, Square’s fees are calculated in three stages:
- Percentage Fee: Square takes 1.4% of the order total.
- Fixed Fee: Square also charges a fixed fee of €0.25 per transaction.
- VAT on Fees: Finally, a 23% VAT is applied to Square’s combined fee.
Because we need to add these fees to the buyer’s total on our side before Square processes the transaction, there’s a bit of complexity. We calculate the fees in advance, then Square calculates them again on its side. With each calculation involving rounding to the nearest cent, it’s nearly impossible to get an exact match to every cent each time.
Why the Difference Can Be Off by Just 1 Cent #
Since each fee calculation step—percentage, fixed, and VAT—requires rounding, small differences start to add up. Here’s how:
- Percentage Fee: The percentage fee isn’t always a perfect two-decimal amount, so it’s rounded up or down slightly.
- Fixed Fee: When the fixed fee (€0.25) is added to the percentage fee, the total often needs another rounding adjustment.
- VAT: Lastly, VAT is applied to the fee total, and this final step also involves rounding.
These small rounding adjustments can mean that, on some transactions, the total may be off by 1 cent—either slightly over or under the intended amount. This doesn’t happen every time, but certain amounts will round differently due to the nature of each individual calculation.
Why You May See This on Some Transactions and Not Others #
Because rounding depends on each specific transaction amount, you won’t see this difference on every sale. Some amounts will match perfectly, while others will occasionally have a 1-cent mismatch. This is a normal part of payment processing and happens specifically due to the three-stage fee calculation required in Ireland.
Why These Differences Are Considered Valid #
These minor mismatches are a standard part of transaction processing across the industry. Since they can’t be eliminated and represent only a tiny fraction of the total, they’re considered valid and do not affect the transaction’s accuracy.
Option for Organizers Who Want to Cover Every Cent #
If you’d like to make sure every cent of Square’s fees is fully covered, you can set up a custom fee amount to add a bit more. This extra coverage ensures you won’t need to worry about any rounding differences.
In summary, if you notice a 1-cent difference, know that it’s a normal part of how Square’s fees are calculated specifically in Ireland, where three stages of fee calculation lead to occasional rounding differences. The “Pass Fees On” option is designed to cover fees as accurately as possible, but a custom fee setup can help if you’d like even closer alignment.
