First, a word of caution. Per Square’s help on surcharges (which is what you are trying to do), surcharges to recoup credit/debit card fees generally are not allowed. This applies to any business for whom accepting credit/debit cards is a normal part of doing business. So, if other businesses like yours accept credit/debit cards, Square doesn’t recommend surcharges because Visa/Mastercard have strict rules about them, as does the federal government. Basic rule is you need to notify Visa/Mastercard that you want to do this, and see what they say. But Square can not authorize you to do it. Remember Square is a middle-man, not the actual credit card authorization authority.
Here’s a link to the Square help on service charges — https://squareup.com/help/us/en/article/7625-get-started-with-service-charges
And a screen shot
Some businesses — like utility companies, etc — are allowed to charge card convenience fees because most people do not pay with cards. In other words, cards are not the standard form of payment and these businesses are allowed to offer card payment options as a convenience for a fee. This is rarely authorized for retail and can cause a retailer to have their ability to process cards revoked if it is discovered.
Otherwise, to answer your specific question if you decide to do this, in the help article I mentioned about, there is a surcharge calculator that will help. There is no single percentage that will work because of the 30-cent swipe fee. The percentage changes based upon the total amount, and you’d have to calculate it for each invoice unless you want to choose some high percentage like 3.5% or 4%, which would cover most fees.
Like I said, you want to tread carefully here. You’re better off offering increasing your prices and offering a cash/check discount to customers, rather than try to recoup fees this way.
Let me know if you have any questions.
First, a word of caution. Per Square’s help on surcharges (which is what you are trying to do), surcharges to recoup credit/debit card fees generally are not allowed. This applies to any business for whom accepting credit/debit cards is a normal part of doing business. So, if other businesses like yours accept credit/debit cards, Square doesn’t recommend surcharges because Visa/Mastercard have strict rules about them, as does the federal government. Basic rule is you need to notify Visa/Mastercard that you want to do this, and see what they say. But Square can not authorize you to do it. Remember Square is a middle-man, not the actual credit card authorization authority.
Here’s a link to the Square help on service charges — https://squareup.com/help/us/en/article/7625-get-started-with-service-charges
And a screen shot
Some businesses — like utility companies, etc — are allowed to charge card convenience fees because most people do not pay with cards. In other words, cards are not the standard form of payment and these businesses are allowed to offer card payment options as a convenience for a fee. This is rarely authorized for retail and can cause a retailer to have their ability to process cards revoked if it is discovered.
Otherwise, to answer your specific question if you decide to do this, in the help article I mentioned about, there is a surcharge calculator that will help. There is no single percentage that will work because of the 30-cent swipe fee. The percentage changes based upon the total amount, and you’d have to calculate it for each invoice unless you want to choose some high percentage like 3.5% or 4%, which would cover most fees.
Like I said, you want to tread carefully here. You’re better off offering increasing your prices and offering a cash/check discount to customers, rather than try to recoup fees this way.
Let me know if you have any questions.
