thread Re: credit card processing fee in Payments Troubleshooting

credit card processing fee

M2rilyn2 — Sun, 11 Jan 2026 22:01:37 GMT

Square does not allow us to charge an in person service charge to a debit card, but they charge my debit card for the service fee. I dont understand the logic. If the customer agreed to pay the service fee, why do Square reject it.

I was told that square dont think the customer should pay the fee and i dont think i should pay the fee.

Please delete the service fee and you will make everyone happy.

You allow only credit cards to absorb the service charge, because that person credit card is creating more debt. Everyone is trying to save money, the economy is bad and Square dont care.

What is your answer?

Re: credit card processing fee

TheRealChipA — Wed, 07 Jan 2026 13:05:23 GMT

Hi there @M2rilyn2.. Fellow seller here. The answer is very simple, actually. Square is prohibited from adding service charges to debit cards and even to certain types of credit cards. This restriction comes from the card networks (Visa, Mastercard, etc) and is also regulated by US law. Square is now in full compliance with those laws and regulations. Keep in mind that Square is charged by Visa/MC for debit card transactions, just as we are.

Your beef here is not with Square since they are following the law and their contracts with the card companies. If you want this to change, you need to contact your congress representative. You are complaining to the wrong folks here.

Re: credit card processing fee

Minion — Wed, 07 Jan 2026 13:59:06 GMT

Just to add to what @TheRealChipA mentioned, here is Visa FAQ about surcharging, and here is Mastercards. Square is simply the middleman between the two.