thread Re: Fee in Archived Discussions (Read Only)

How do I create a surcharge?

Sweetalicious — Thu, 31 Oct 2019 14:24:23 GMT

I want to start charging a .10 "upcharge" on all credit card transactions under $5.00, I know it is legal in my state, how do I do that within Square.

Re: Fee

cmusicshop — Wed, 23 Oct 2019 18:44:46 GMT

Not sure if you can but might it be easier to just add .10 to every item under $5?

Re: Fee

TBHospitalityNY — Thu, 24 Oct 2019 06:22:21 GMT

You could create a modifier set call Fees and create a .10 modifier called Credit Surcharge and associate it with all the items under $5. It can even be toggled to have it preselected if it’s easier to deselect occasionally rather than select (if the vast majority if your transactions are CC).

Good luck!

Re: Fee

Sweetalicious — Thu, 24 Oct 2019 12:12:49 GMT

Don't want to do that as the purpose of doing this is to recoup the .10 per transaction fee for card use which is coming our way. I don't want cash customers to have to absorb that..

Re: Fee

cmusicshop — Thu, 24 Oct 2019 14:15:59 GMT

Prices need to increase as part of doing business. You don't want to think of it as a 'punitive' approach but just an all around increase to help offset rising costs. You are looking to reclaim that .10 but what happens when your phone bill goes up $50? Are you going to add a surcharge to only the people who call you? A surcharge for customers that come in the winter and benefit from your heating? You can't possibly base increases of one thing - it would never stop and the best you'll ever do is break even.

So, your cash customers absorb part of the cost of doing business increases alongside your charge customers. That will better equip you for the next price increase from a supplier or utility. Better equip you for when a different increase affects a different segment (paper costs - raise prices for people who get receipts?).

I mentioned elsewhere that I'm lucky, the price increase is a wash for me because I sell some large ticket items. But still, it is costing me more on those smaller ticket sales. Many of my small items are less than $10. One of my most popular items is $6.95 - it used to be $6.50 but I decided it was time for a raise. So, the Square increase bit into that .45 cent raise but I was able to absorb it easier. And everyone, cash or credit pays the new price. Here's the kicker - this item is bought on the internet for cheaper than I can sell it for and yet, I still sell plenty and not ONE person even mentioned the price increase. I'd say, maybe change how you view this - sure, raise your price to offset your costs but look at it as a raise to you, not a recouping of one expense.

Re: Fee

taden — Thu, 31 Oct 2019 13:45:16 GMT

How do you toggle this on and off?

Re: Fee

isabelle — Fri, 01 Nov 2019 00:27:27 GMT

Hey @taden!

You can toggle these on and off under Settings in the Square app, or right here in your Online Dashboard.

Re: Fee

Tahafisaka — Mon, 16 May 2022 01:58:42 GMT

While I somewhat see your points, they are also flawed. CC users cause a direct cost, not an indirect cost. All other costs you mentioned are general cost of doing business. While this cost is similar to a CC user, when the charge amount is less than $5.00 it can significantly cut into profit margins where the sale itself is almost a nil profit.

You could add in the feature to add a convenience fee. not sure if you could then discount off if the customer pays cash.