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Tutorial · Inventory & reports

Tracking payment processing fees

Credit card and Venmo Business fees come off the top before you ever see the deposit. Two ways to track them: tax-accurate (Expenses sheet) and live-during-event (in-app estimate). Use both.

Time: 10 minutes to set up, ongoing Difficulty: Easy Prereq: One event recorded

Why this matters

If you take a $50 card payment, you do not receive $50. The processor takes a slice (usually around 2.6% plus 10 cents per transaction, depending on processor and plan) and deposits the rest. Across a busy event, those slices add up to real money, and they are a deductible business expense at tax time.

The catch: processors charge per transaction, not per item. So if a customer pays for one $50 purchase you pay one fee, but if the same customer does five $10 purchases you pay five fees. The flat-per-transaction part hits small sales harder in percentage terms.

Two paths, two purposes

For tax filing, use your processor's actual statements. They are the truth. For during-the-event "am I making money" awareness, use fiveanddime's live estimate. Both paths are documented below.

Path 1: tax-accurate (Expenses sheet)

This path is what your accountant cares about. The numbers come from your processor's monthly statement, not estimates.

1

Download your processor statements

Square, Stripe, PayPal, and Venmo Business all publish monthly statements with a "fees" line. Log into your dashboard once a month and grab the number, or download the CSV.

2

Record fees in the Expenses sheet

Open your fiveanddime spreadsheet and click the Expenses tab. Add a row per processor per month (or per event if you want event-level detail):

That's it. At tax time the Expenses sheet has the year's processing fees totaled and categorized, ready for your Schedule C (or your accountant's spreadsheet).

Path 2: live estimate (in-app)

The estimate runs while the event is still going. It is not exact (processors round and tier in ways we cannot perfectly mirror), but it is close enough to answer "is this booth fee worth it after fees?" before you tear down.

1

Configure your rates in Settings

In the app, open Settings and scroll to Payments. You will see one row per payment method you have set up (Cash, Card, Venmo, etc.). Each row has a percent field and a flat field.

Typical rates as of mid-2026 (check your processor's current rates, these change):

Venmo personal accounts have no fee, but they also are not really for business

If you receive payments to a personal Venmo account, Venmo does not charge a per-transaction fee. That is why the rate is left blank. But Venmo's terms of service prohibit using a personal account for business sales, and they have been enforcing it more aggressively. If your volume grows, switch to Venmo Business (which charges 1.9% + $0.10) to stay on the right side of their rules and to keep your business income properly documented for tax purposes. Talk to your tax person about reporting either way.

2

Save

Tap Save payment settings. The rates write to your backend and propagate to your other devices on next pull.

3

Watch the live estimate during an event

Open Reports during or after an event. The per-event P&L table now includes a Processing fees (estimated) row, with a breakdown by payment method underneath. The "Net to you" line at the bottom already has the estimate subtracted.

You see at-a-glance: gross sales, sales tax (owed to the state, not yours to keep), cost of goods sold, booth fee, mileage, processing fees, and your real take-home.

Reading the breakdown

Under the P&L table, you will see something like:

Estimated only. Breakdown: Card $14.32 · Venmo $2.18. Use your processor's statements for tax filing.

That tells you how much each payment method cost you at this event. Useful for:

Worked example

One booth day

A Saturday fair. You ran 28 transactions: 14 card, 8 Venmo Business, 6 cash.

Card total: $620 across 14 sales. Estimated fee at 2.6% + $0.10 = $16.12 + $1.40 = $17.52.

Venmo Business total: $180 across 8 sales. Estimated fee at 1.9% + $0.10 = $3.42 + $0.80 = $4.22.

Cash total: $90. No fee.

Gross sales: $890
Estimated processing fees: $21.74
After-fee net (before COGS, booth, mileage): $868.26

When the Square and Venmo statements arrive next month, you record the actual fees in Expenses as Payment processing. The estimate gets you there in the moment; the statements close the books for tax.

Why two paths instead of one

Common mistakes

Putting last year's rate in.

Processor rates change. Square has raised in-person card a few times. Check your processor's current rate annually and update the Settings.

Confusing in-person and online rates.

Online and keyed-in card rates are higher than in-person tap/dip rates. For a booth POS, the in-person rate is the one you want in Settings.

Treating the estimate as the tax number.

It is not. The in-app fee estimate is for decision-making during and after an event. For tax filing, use the actual processor statement total recorded on the Expenses sheet.

Recap

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