Add payment fee calculator to match Stripe & Paypal fees (flat rate + percentage)

drummer83 commented 3 years ago

What is the need / problem?

Shop owners may want to pass on the transaction fees from Stripe & Paypal to their shoppers. Currently this not possible, because it is calculated as a combination of a flat rate and a percentage of the total amount. People are trying to build workarounds but they can never be accurate because other fees are not taken into account in existing OFN fee calculators.

Which type of users does this problem affect (and how many, if known)?

- Hub Managers (MCFEs)

Potential solutions that will solve the problem?

We would need a) a fee calculator that enables the combination of flat rate and percentage b) this fee calculator should be on top of other fees (like enterprise fees, shipping fees) or c) two separate fee calculators (one for flat rate, one for percentage) which are on top other fees but not on top of each other

It should be discussed how to handle taxes.

Connected wishlist and discovery discussions* [list precedent discussions]

https://openfoodnetwork.slack.com/archives/C012LE8LLDS/p1605547258043400 https://openfoodnetwork.slack.com/archives/CG7NJ966B/p1600324879222800

Additional context

Is Papercut or feature candidate?

Add papercut or feature label to answer the question. If you are not sure, don't worry product team will cover :-)

jaycmb commented 3 years ago

More than Papercut I d say

RachL commented 2 years ago

Hey @drummer83 we were chatting with Lynne and it appears this is illegal to do in the UK. Do you know if it is legal in Germany ie to make shopper pay fees to be able to pay by credit card?

This could actually lead to OFN having to remove all the calculators on payment methods :scream:

lin-d-hop commented 2 years ago

This is important to note:

Traders in the EU are not allowed to charge you extra for using your credit or debit card.

https://europa.eu/youreurope/citizens/consumers/shopping/pricing-payments/index_en.htm

tschumilas commented 2 years ago

There are no Canadian laws prohibiting merchants from passing transaction fees to cusomters. However - this is in the code of practice for each credit card, and they all differ. A credit card companies have operating guidelines where they say they could impose penalties to merchants who do this.....

I don't see a reason for removing payment fees --- because often times with a cash payment method (like cheques) our user passes a fee to the buyer for the time/inconvenience of the payment method.... Maybe we just put something in the user guide that says, this may not be legal in your country - and you should check with your accountant....

drummer83 commented 2 years ago

Hi, it's been a while... I did research again with the following outcome (for Germany at least):

Credit cards: Fees MUST NOT be passed on to customers. Whether another, free payment option is offered is not relevant.
PayPal: Fees MAY be passed on. An additional free payment option (common and reasonable) must be offered (e.g. cash or bank transfer).

So, I think at least for PayPal this is not blocked in Germany. According to Theresa it is also not blocked for Credit Cards in Canada.

A general thought: I don't think that the OFN can be held responsible for users forwarding the payment fees even though they are not allowed as long as we simply provide a calculator. We should never encourage users to do so and should tell them that it might not be legal, but I wouldn't think that we have to remove calculators on payment methods at all. #IamNotALawyer :smiley:

Ping @RachL @lin-d-hop.

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