thread Re: Gift Card Load Fees in Payments Troubleshooting

Gift Card Load Fees

Tapandtable — Fri, 12 Dec 2025 12:13:44 GMT

Just sold someone a $100 gift card, they paid over the phone with a card so I get that expense but 2.5% to load a gift card that cost me almost $2 anyway?! Have yall lost your minds? We make $93 off that $100 gift card, I’ll be honest. Something has to give,

Re: Gift Card Load Fees

Donnie-M — Fri, 12 Dec 2025 17:06:37 GMT

@Tapandtable yea it is frustrating, I assume you are talking about a physical gift card? The credit card fee is taken when you load the card, there isn't a fee when they redeem it so you kind of end up the same either way. In reality, loading cash costs more now than it used to. The sad thing, is that is kind of the industry norm now. The good news, the redemption rate on gift cards more than covers what it costs (people lose them, leave dollars here and there, etc).

Re: Gift Card Load Fees

Summer2024 — Fri, 12 Dec 2025 17:55:24 GMT

Thanks for providing your insight @Donnie-M 😄

@Tapandtable - I know this is super frustrating.

To clarify, Square applies the same card-processing fee to gift card purchases as it does to any other card transaction, since the payment is being processed through the network just like a regular sale.

Hopefully that clarity helps, but I do truly understand the frustration around the load fees.

Re: Gift Card Load Fees

Tapandtable — Fri, 12 Dec 2025 18:52:13 GMT

Makes complete sense to see it that way. I guess I actually stopped and noticed it cost us right at $7 to load a gift card.