thread Re: No Longer Permitted to Charge Processing Fees to Customers in Payments Troubleshooting

No Longer Permitted to Charge Processing Fees to Customers

RobInDaBurgh — Sat, 20 Sep 2025 19:47:56 GMT

I'm curious how other are handling the fact that Square no longer permits credit card processing fees to be charged to the customer.

Re: No Longer Permitted to Charge Processing Fees to Customers

JK_Fiber_Art — Mon, 05 Feb 2024 13:41:24 GMT

Hi RobinDaburgh,

This has always been an interesting topic not only with Square but with most Credit Card Processing Services. For example, for years even PayPal has not permitted surcharges or passing the processing fees to the customers, it's clearly stated in their Terms of Service. And in some States, there are regulations against Surcharges. Additionally, the Credit Card Companies have specific policies and guidelines in place concerning Surcharges to discourage the practice. The work around for many is to either increase prices, add a Service Fee, or if selling in person - offer a Cash Discount. Customers like discounts for sure. Many customers don't like seeing additional charges on transactions especially these days, prices are high enough. And it's hard on businesses too as their costs don't go down. So how can you make everyone happy - if only I had that answer. Many businesses do look for ways to increase their revenue by selling via different venues however, depending on what you sell, that's not always possible. We're always looking for ways to sell outside the box.

Re: No Longer Permitted to Charge Processing Fees to Customers

rtfulk — Tue, 06 Feb 2024 03:17:55 GMT

When we found out we couldn’t charge a service fee anymore, we started letting inventory sell down and when we restocked we just went up a 1.00 on some things, some we didn’t change the price.

Re: No Longer Permitted to Charge Processing Fees to Customers

DinaLRosenberg — Tue, 06 Feb 2024 19:02:51 GMT

In our State we aren't allowed to charge a CC processing fee but ARE allowed to offer a cash discount. So perhaps that is more in line with what Square allows