Here's the full updated standalone article incorporating the "Fees collected" Xero tip and the IRD/ATO links:
💳 Managing card payment surcharges in Auxo Workshop
Card surcharges in Auxo Workshop without an EFTPOS integration
When a customer pays by card and their payment attracts a surcharge, Auxo Workshop does not automatically calculate or apply that surcharge unless an EFTPOS integration is active. For workshops without an EFTPOS integration, the surcharge is handled entirely at the terminal level and does not flow into Auxo Workshop automatically.
This article outlines two manual approaches workshops use to account for surcharges in these situations.
💡 Tip: If your workshop processes a high volume of card payments, the Windcave payment integration automates surcharge handling entirely — recording surcharges against each payment in Auxo Workshop and posting them through to Xero without any manual steps. See the Windcave Payment Integration article for more detail.
🧾 How surcharges work without an EFTPOS integration
When a card surcharge is applied, it is handled by the EFTPOS terminal directly. The customer sees the surcharge on the receipt printed by the terminal, and the surcharge amount typically appears in your merchant settlement report from your terminal provider or bank.
Auxo Workshop is not aware the surcharge occurred. The payment is entered into Auxo Workshop as normal for the invoice amount, and any surcharge reconciliation happens outside of Auxo Workshop.
⚙️ Options for recording surcharges manually
The two approaches below are commonly used by workshops to account for surcharges manually. Both involve steps outside of Auxo Workshop, and neither is the only correct method.
⚠️ Important: The right approach for your workshop depends on your specific accounting setup and GST obligations. We recommend confirming your preferred method with your accountant before proceeding. This applies to both options below, and in particular to any changes made to your Xero account mapping.
📄 Option 1 — Add a sundry line to the invoice
A surcharge amount can be added to the job as a non-stock part or sundry line before invoicing, so it appears as a line item on the invoice the customer receives.
Add a non-stock part or sundry line to the job, labelled something like "Card Surcharge" or "Payment Surcharge"
Enter the surcharge amount manually based on the fee applied at the terminal
The surcharge will appear on the invoice and be included in the invoice total
The surcharge line must be added before any payments are entered, as invoice lines cannot be added once a payment has been recorded
When entering the payment in Auxo Workshop, you then have two options:
Single payment: Enter the full amount (invoice total including the surcharge line) against your usual card or EFTPOS payment method
Split payments: Enter the original invoice amount against your usual card or EFTPOS payment method, and enter the surcharge amount as a separate payment against a dedicated surcharge payment method
The split payment approach can be useful if you use Xero, as each payment method can be mapped to a different Xero account code in Xero Account Mapping. This allows surcharge amounts to post to a dedicated surcharge account separately from your regular card settlements, making reconciliation cleaner.
⚠️ Important: Before setting up a dedicated surcharge payment method or making any changes to your Xero account mapping, consult your accountant to confirm the correct account codes and GST treatment for your setup.
To set up a dedicated surcharge payment method, go to Settings → System Configuration → Methods of Payment and add a new method. See Initial Setup — System Configuration for more detail on managing payment methods.
📝 Note: Payment methods cannot be edited or deleted once created, so use a clear and accurate name before saving.
📊 Option 2 — Record the surcharge in Xero
Rather than adding anything to the Auxo Workshop invoice, surcharges can be accounted for directly in Xero at the end of a period, such as daily or weekly, using your merchant settlement report as the source.
Use the settlement report from your terminal provider or bank to determine the total surcharge amount for the period
Record this in Xero against your surcharge account
One approach used by workshops is to create a transaction line to a dedicated "Fees Collected" account when reconciling your card or EFTPOS transactions in Xero
Your accountant can advise on the correct account mapping and whether a manual journal or transaction is more appropriate for your setup
⚠️ Important: This option involves changes to your Xero accounts and journals. Consult your accountant before making any changes to ensure entries are coded correctly for your GST obligations and reconciliation processes.
This approach keeps Auxo Workshop invoices unchanged and handles surcharges entirely within Xero. See Xero — Customer Payment Reconciliations for general guidance on reconciling payments between Auxo Workshop and Xero.
🌏 GST reference information
The following links may be helpful when discussing surcharge GST treatment with your accountant:
New Zealand: GST treatment of fees that suppliers charge customers for using a credit or debit card — Inland Revenue
Australia: ATO community response on credit card surcharges and GST — Australian Taxation Office