As the merchant, do I get charged the 2.75 % on electronic tips as well?

[Zuzu]

I feel a little ridiculous, I think I know the answer, but need to ask anyways. We use a different Payroll company, so we cash out electronic tips at the end of the night through our deposit. As the merchant, do I get charged the 2.75 % on electronic tips as well? Should I be taking that into my calculation when I cash out tips at night?

[ryanwanner]

Hello @Zuzu 

Yes, every dollar that goes through credit card processing  gets charged the swipe fee, including taxes and tips. 

Before you deduct that percentage from your employees tips, though, I recommend checking your labor laws for your state. Many times you’re not able to pass along that fee.