thread Re: How to add a surcharge that matches Square's processing fees? in Archived Discussions (Read Only)

How do I add a surcharge to a sale?

Tammyfalcon — Tue, 03 Mar 2020 19:49:42 GMT

This post has been edited by a moderator. Learn more about Square's fees in our Support Center.

How do I add the fee to the customers bill?

Re: How do I add the 2.75% to the customers bill

Shots_Billiards — Sat, 23 Apr 2016 06:06:14 GMT

As a second tax is the easiest way. Make sure to post a sign stating your policy though!

Re: How do I add the 2.75% to the customers bill

NLAUtah — Tue, 24 Sep 2019 19:08:58 GMT

Note (2019): Square's per transaction fee for card payments that are dipped, tapped or swiped is 2.6% + 10c. Learn more in our Support Center.

Create a "Card Processing" tax but set it to 2.83% instead. If you add the 2.75% tax, the total charge goes up that much more which means Square takes a bit more in processing fees. By setting it to 2.83%, it almost always comes out to the right amount. I say almost because of rounding the fee percentage, once in a while it will be $0.01 off, but usually in your favor.

For example, for a $100 item with a 2.75% fee taken would net you $97.25. So you think, I'll just add a 2.75% tax to the total to make up for it, right? Now your total charge is $102.75 and Square takes 2.75% of that leaving you with $99.92. Well that's not right.

With a 2.83% tax added to the $100 item would be a $102.83 total charge. Square takes their 2.75% from $102.83, which is $2.827825, rounding to a $2.83 fee, leaving you with the expected $100! 🙂

An issue with this is what about when someone pays with cash? You shouldn't charge the Square processing fee on that order. You could turn off the processing tax for each item but that is a PITA. The answer I found is to set up the Dining Options of "Cash" and "Credit Card", with credit card being the default option. Then in the Taxes section, set up a Tax Rule for the Cash dining option to disable the "2.83% Processing" tax for All Items. During an order on your register, you will be able to switch between the dining options which then removes the processing tax automatically.

Hope that helps!

Re: How do I add the 2.75% to the customers bill

FACTplayers — Sat, 23 Apr 2016 13:14:51 GMT

Just wanted to hop in here to say, make sure this is legal in your state. Some states have laws against an additional fee for using credit cards. I'm not a lawyer, but I would create my policy to offer a cash discount.

Here's a website with more info on the ability to charge credit card processing fees:

https://www.cardfellow.com/checkout-fees-charging-credit-card-fees-to-customers/

How do I add an automatic surcharge?

Sugarplum — Wed, 09 Nov 2016 00:57:04 GMT

How do I add an automatic surcharge?

Is there a way to charge your customer the processing fee?

tinaree — Mon, 02 May 2016 17:44:20 GMT

Is there a way to charge your customer the processing fee?

Is it possible to have customers pay the transaction fees?

RKH — Wed, 30 Nov 2016 01:36:37 GMT

Is it possible to have customers pay the transaction fees?

Re: Is it possible to have customers pay the transaction fees?

Joe2016 — Wed, 27 Apr 2016 11:34:13 GMT

I've been trying to get the same answer. It seems we are able, legally, have the client pay the fee in California. I wish square would give that option and not charge us a % fee on that amount on top of it

Re: Is it possible to have customers pay the transaction fees?

Donnag — Wed, 27 Apr 2016 13:40:18 GMT

Could you add the fee as an additional, but identify it as Credit Card Fee.

Re: Is it possible to have customers pay the transaction fees?

Donnag — Wed, 27 Apr 2016 14:09:29 GMT

Additional tax.

Re: How do I add the 2.75% to the customers bill

Sean — Thu, 24 May 2018 17:11:08 GMT

@Shots_Billiards @NLAUtah @FACTplayers Awesome job helping out here! 💯

THere are a few states that actually prohibit passing along surcharges to your customer, so definitely check in with a tax professional or your local government to be sure.

Should you decide to apply a surcharge, it is your responsibility to meet all legal and card network requirements. If you intend to enact a surcharge policy, you must first notify both Visa and MasterCard:

VISA Merchant Surcharge Notification Form
MasterCard Surcharge Disclosure Form

You can check out our Support Center article Can I Apply a Surcharge to Square Sales for more details.

Re: Is it possible to have customers pay the transaction fees?

Mylane — Wed, 25 May 2016 04:28:26 GMT

In California if you accept VISA payments you ARE NOT allowed to pass on your processing fees to your customers. This is a part of doing business. Generally you will write the processing fee off on your taxes. There are some judgements in Appeals Court, but at the time of this writing, you are not allowed to pass on this fee in CA.

How do I charge customer square fees?

radman — Thu, 23 Jun 2016 18:45:51 GMT

How do I charge the fees to the customer without them being added to squares total charges?

Re: Is it possible to have customers pay the transaction fees?

adamn1 — Tue, 24 Sep 2019 19:54:22 GMT

Note (2019): Square's per transaction fee for card payments that are dipped, tapped or swiped is 2.6% + 10c. Learn more in our Support Center.

The prohibition of adding surcharges in California of which you mentioned has been ruled unconstitutional as of March 2015. See this link: https://oag.ca.gov/consumers/general/credit_cards.

However, what I believe you can do (even in California) is set a price that takes the added surcharge fee into account as your published price, but then offer a "discount" price for cash-paying customers, like many gas stations do. Square lets you set a discount amount or percentage on your dashboard. To calculate the price based on surcharge overhead, simply do the following computation: X = Y/0.9725, where X is the price you would charge the customer and Y is the amount you expect to collect from the credit card vendor. As you will see, the numbers consistently add up correctly (rather than using the 2.83% estimate). To set the discount on the dashboard, simply enter 2.75% and use it whenever patients pay cash. Beware of other laws, such as deceptive pricing laws, etc. And ALWAYS make sure your pricing policy is clearly posted or noticed in your place of business.

Re: How do I charge customer square fees?

sippaintsmile — Fri, 24 Jun 2016 05:18:19 GMT

The only way i thought to do this is to add the % to each item example if the item is 20.00 the fee would be 2.95 % + .15

20.00=2.95%= 20.59 +.15= 20.74 but then the % is added to the total of 20.74 i think the best way may be to add tax.

Re: How do I add the 2.75% to the customers bill

Hoosier101 — Sat, 25 Jun 2016 01:45:31 GMT

Thats perfect!

Just how much per transaction do they take. Iys different each time ive used it. want all my cash!

Srcarey40 — Sat, 25 Jun 2016 13:58:48 GMT

How much per transaction is taken. I want all my money. What should i charge them for using square. Im not gettin all my freakin cash.

Re: Just how much per transaction do they take. Iys different each time ive used it. want all my ...

Tom — Sat, 25 Jun 2016 19:47:34 GMT

Hey @Srcarey40 — It looks like another seller had the same question, and received an answer. Check out the reply from Sean and let us know if that helps!

Charging a surcharge for credit card use in Colorado. How do we do this legally?

DiversifiedRS — Wed, 06 Jul 2016 18:42:45 GMT

We are a small business in Colorado. We want to charge 4 percent for crdit card transactions to cover our costs. What steps must be taken to do this? Everywhere I use my credit card charges me a surcharge/fee for using my card yet your site says my state is 1 that prohibits this practice. I need to figure out how to cover costs associated with using square with my customers.

Re: How do I charge customer square fees?

EJ_ — Thu, 07 Jul 2016 20:05:07 GMT

@radman @sippaintsmile Check out this thread for more suggestions on surcharges. A few of your fellow sellers might have work arounds that can help!