How do you deal with not being able to charge credit cards fees with square?

[tandtlc]

My competitors are all charging 3% fees to their customers when the use a credit card. I just tried to set that up with my square pos and learned square doen't support it. How have you responded to the fee increases? Did you raise prices to cover them? Are you just accepting reduced profit margins? What are other retailers doing?

[SpfldBraid]

You can set up a processing fee in the tax section. change the name of the "tax" to "Processing fee".

[Candlestore]

@tandtlc ;

I would raise prices by 3% and then give a 3% discount for people paying in Cash.  The problem with making the cc fee a 'Tax' is some Credit Cards will only let you charge the actual fee which is almost impossible to calculate.  Lower sales amount actually have a higher processing fee because of the per transaction fee of .10 for example.  No one cares about you giving a Discount tho.  Even the a Cash discount only benefits cash users.  My accountant uses a Convience fee which is a % charge for using a Credit card.

In my experience ppl are always looking for a Discount. So offering a Cash Discount sounds more appealing to a customer than an extra Fee.  Just my 2 cents here.

[JK_Fiber_Art]

Some businesses simply raise their prices or add a service charge  - have a clear policy in place explaining why there is a service charge - the FAQs on that link provide some good information.

[ryanwanner]

@JK_Fiber_Art @SpfldBraid  I HIGHLY recommend against using the service charge feature to set up processing fee passthroughs in the US. This is explicitly against the Terms and Conditions of Square and potentially can lead to your account being closed.

The reason for this is because the US laws prohibit service charges on debit cards. Since currently Square has no way to differentiate between debit and credit cards right now, it was easier to just ban the surcharge entirely. One seller getting caught with the fees could have issues with all of the other sellers on the Square platform.

@tandtlc  Your best bet is what @Candlestore said: if you're not interested in pricing your items in a way where it absorbs the cost of processing fees, your best bet is to raise prices by your average swipe fee then offer a cash discount. Do remember that processing fees are tax deductable at the end of the year as well!