Let’s be honest—we’re all a little tired of being ambushed by credit card processing fees at checkout. You pick a product, head to pay, and boom—your total has magically grown like a toddler discovering sugar for the first time.
But here’s the plot twist business owners don’t see coming: that tiny little surcharge you’re adding to “cover costs” could be the very thing that invites your friendly neighborhood Department of Revenue to your doorstep… and trust me, they never come empty-handed.
For family businesses, reinvented careers, and modern entrepreneurs trying to earn more, pay less tax, and avoid spending their lives trapped inside spreadsheets, this issue goes far beyond a convenience fee—it’s a compliance landmine. At Calculated Moves, we’re all about strategic planning and avoiding expensive surprises… especially the kind that comes in the form of back taxes, penalties, and an auditor who’s determined to leave with a check.
So let’s talk about why credit card surcharges can turn from “just 3%” into “just cost me thousands,” and how to protect yourself from a tax mess that’s absolutely avoidable with the right planning.
Business owners love surcharging because it feels like a win:
“Why should I eat the 3% transaction cost? Let the customer pay it.”
But in many states—including heavy hitters like California, New York, and Texas—that surcharge is considered part of the taxable sales price. That means:
Product: $100
Processing Fee: $3
Sales Tax: calculated on $103
Do that thousands of times and you’ve just created a tax gap big enough to make an auditor drool.
If the Department of Revenue walks in and sees you’ve been skipping sales tax on processing fees, you’re not just paying the difference. Oh no.
You’re also paying:
And here’s the fun part: sales tax auditors never walk away empty-handed.
They’ll look at everything, not just your credit card fees. And yes—they will find something. No one is 100% compliant.
If you charge surcharges, you need immaculate records:
If your state doesn’t tax these fees, keep proof—because rules change, and you need backup if an auditor questions it later.
Surcharges aren’t just a line item. They’re a tax strategy decision, and one that can either keep your business profitable… or open the door to penalties you never budgeted for.
And when you’re running a business—doing what you love, serving customers, and trying to stay profitable—the last thing you need is an accidental compliance disaster.
That’s where Calculated Moves comes in. We help you navigate the messy, confusing world of tax rules so you can make informed decisions, avoid financial landmines, and steer your business into smoother waters.
Because you’ve got better things to do than read tax code—let the pros handle the complexity so you don’t have to.
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Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.