Wow that sounds like a great, important feature!
I found this information, and maybe its helpful?
While Square doesn't have a built-in feature to automatically add a "pending charge" like a penalty fee before a customer can make further purchases, you can achieve a similar effect by utilizing the "service charge" function to automatically apply a fee to a customer's current purchase if they have outstanding late payments on their account, which would effectively prevent them from making new purchases until the outstanding balance is addressed. - Access your Square Dashboard: Log in to your Square account and navigate to "Account & Settings" > "Business information".
- Create a service charge: Under "Service Charges," click "Create service charge".
- Set conditions:
- Name your charge: Give the service charge a descriptive name like "Late Payment Fee."
- Apply based on customer status: Use Square's customer management features to identify customers with outstanding late payments and apply the service charge only to their transactions.
- Set the fee amount: Choose whether to apply a flat fee or a percentage charge based on the outstanding balance.
Important Considerations:
Legal implications:
Be aware of local regulations regarding late fees and ensure your implementation complies with consumer protection laws. Customer communication:
Clearly communicate your late payment policy to customers so they are aware of potential charges.
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