thread Why does Square calculate the service fee twice? in Payments Troubleshooting

Why does Square calculate the service fee twice?

amp2021 — Sun, 21 Sep 2025 06:24:28 GMT

Why does Square calculate the service fee on the invoice amount (say invoice is $120, so service fee would be $3.60), add that amount to the invoice (invoice now at $123.60), then calculate it AGAIN on the new amount (new service fee $3.88) before sending my money to the bank? Calculating the amount twice essentially shorts me (in this case $.28) on every transaction.

Re: Why does Square calculate the service fee twice?

TheRealChipA — Wed, 20 Jul 2022 16:10:13 GMT

@amp2021 Square’s fees are based upon the total amount that was paid with a credit/debit card. Their fees also include sales taxes, tips, and so on. Basically we are charged x% of the amount the customer paid using cards. Otherwise, they don’t calculate their fees twice, just once for the total amount paid. Do you have something you can share to show why you believe they calculated their fees twice?