thread Re: we want to start charging a 3 % fee for using credit cards, is there a way to set it up where it in Payments Troubleshooting

we want to start charging a 3 % fee for using credit cards, is there a way to set it up where it cha

Kimt — Sat, 20 Sep 2025 19:05:04 GMT

Re: we want to start charging a 3 % fee for using credit cards, is there a way to set it up where it

ryanwanner — Fri, 25 Oct 2024 14:12:17 GMT

Hello @Kimt !

Here in the US, a credit card surcharge is explicitly against the Terms and Conditions of Square. If you decide to implement a surcharge and Square catches you, your account could be terminated with little notice.

Basically, the credit card companies (Visa, Mastercard, etc) have regulations stating that surcharges can only be applied to credit cards, not debit or prepaid cards. Since Square doesn't have a way to tell the difference between the two currently, the best practice was to put a blanket ban on surcharging or face not being able to process credit cards at all. I'd like to believe engineers are hard at work creating a way for the software to tell the difference between the types of cards, but I have no data saying this is or isn't happening.

If you're adamant about adding a surcharge, the way around it is to raise all your prices by 3% then offer a discount for cash sales. Otherwise, you can always figure out what the average swipe fee per sale is then raise your prices to match. Also, don't forget that your card fees are tax deductible!

Re: we want to start charging a 3 % fee for using credit cards, is there a way to set it up where it

Mandeville — Sun, 17 Nov 2024 01:54:19 GMT

Could you point me to where the restriction is outlined in the terms and conditions restricts the use of credit card fees?

Thank you!

-L

Re: we want to start charging a 3 % fee for using credit cards, is there a way to set it up where it

rtfulk — Wed, 20 Nov 2024 00:44:11 GMT

@Mandeville Here is the link for service charges, about half way down explains why they are no longer supported buy Square.

https://squareup.com/help/us/en/article/7625-get-started-with-service-charges

Re: we want to start charging a 3 % fee for using credit cards, is there a way to set it up where it

npl_jsmith — Mon, 09 Feb 2026 20:38:35 GMT

@Mandeville @rtfulk the article cited in your post appears to have been changed. I do not see anything in the current version of the article that says that credit card surcharges are not supported by Square. Could it be due to the January 2013 Class Action lawsuit that forced all the credit card vendors to start allowing merchants to apply a credit card surcharge?

Re: we want to start charging a 3 % fee for using credit cards, is there a way to set it up where it

TheRealChipA — Mon, 09 Feb 2026 21:35:39 GMT

Everyone....

Square recently rolled out a surcharge feature that is in compliance with the card network rules. It has absolutely nothing to do with the 2013 class action lawsuit because that did not come close to addressing all of the issues, which resulted in a patchwork of 50 states with 100 different sets of rules! For the past few years, the networks have been working on new rules for companies like Square to use.

Beware -- there are still regulations on how you can use this. In mosts cases, clear signage and statements on websites are required. These are outlined in the help document below. Be sure to follow these explicitly or Square and/or the networks could revoke your card processing privileges.

To add a card surcharge:

Sign in to Square Dashboard and go to Settings > Account Settings > Payments > Service charges.
Click Create card surcharge.
Enter your surcharge percentage (up to 3%).
Select applicable business locations and whether the surcharge is taxable.
Review compliance notifications and print required signage to display at your business.
Click Done to save.

Your POS will automatically add the surcharge to credit card transactions. Printed receipts will show a notice about the surcharge.

Learn more about how to set up and manage credit card surcharges.