Does anyone know when square is updating software so that clients can be charged the surcharge like other merchant companies can do??
Hi @SSCOA. Honestly I don’t think that Square will be doing this, It was only a few months ago that they informed us that any surcharges we had that looked like trying to pass on credit card fees would be removed, and that any attempt to add them back would be viewed as a violation of our TOS subjecting us to loss of card processing privileges. I can’t be certain of this, but I’m betting this had to do with the “sting” that Visa, Mastercard, etc, did for most of last year, trying to crack down on abuses. I read an article a few months ago that the sting is ongoing and that these “other’ card processors you speak of are eventually going to lose the ability to process cards for any of their businesses unless they start following the rules, which they aren’t now.
Your best bet here is to do what I and many others have done for years and years. The price of all of my goods includes my average card processing fees and everyone pays it — cash and card paying customers alike. This is no different that averaging the rent and utilities, etc, and adding a certain percentage to my prices to cover those. I’ve done this for over a decade now and no one complains. And I have the benefit of telling my customers when they ask that “I don’t care how you spend your hard-earned money with me. Just spend it, and I’ll be grateful!” Best PR move I ever made.
I provide a service and not a good, the charge amount is set by an insurance company, not me so I cannot change it
Since you provide a service - then you do have the option to charge a Service Charge - many professionals in the industry do this to help offset certain operational or overhead costs. For example, one mechanical company I deal with charges $60 just for the use of their service vehicle - not only do I pay a flat fee for the service call, there's additional costs for parts, any labor over an hour and the extra $60 for the service vehicle. Yep, it's a bit wacky to say the least however, the work performed is excellent, professional and they show up on time which is quire rare these days. It's best to be upfront with your customers \ clients so they understand what the additional charges are for. Keep in mind that you cannot use the service charge feature for specifically adding a credit card surcharge so you need to figure out how to break down your operating costs. Some businesses also offer a Cash Discount - that can be an attractive offer for many.
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