Taxes

Once a recovery strategy is activated, Failed Payment Recovery handles charges when a payment fails, including those already in the retry cycle. To see which charges are affected by Failed Payment Recovery processes, see Error Types.

If a charge is in an error state with a retry date and then fails its next retry attempt, this is considered in an active dunning process. At this point, the charge will be moved into the Failed Payment Recovery strategy mid-cycle for continued recovery efforts.

The state of Minnesota implemented a Retail Delivery Fee effective July 1st, 2024, on orders delivered to a Minnesota address with a value of $100 or more. Recharge recommends reviewing Minnesota Retail Delivery Fee on the State Department's website to determine if you are responsible for collecting this fee.

By default, Recharge does not automatically apply this fee to orders. You must enable the Retail Delivery Fee through your Tax Settings page in Recharge:

1. Log in to your Recharge merchant portal.
2. Click Settings and select Taxes. 
3. Enable the Charge customers the Minnesota Retail Delivery Fee option.
4. Save your changes.

Once enabled, a $0.50 Retail Delivery Fee is applied to orders with a delivery address in Minnesota and a value of $100 or more for all products. Consult a Legal Advisor to assess the potential impact of this fee on your store.

You must enable this setting in Recharge if you use Avalara. You can enable this setting for tax estimation purposes if you use the Shopify Checkout Integration, however, Shopify handles all tax charges and calculations for stores using the Shopify Checkout Integration.