Hi @Nourish-vt. A frequently asked question, for sure. I used to have a different resource that I referred sellers to who wanted to do this. But, recently I found a better resource in Merchant Maverick. Here’s the link to it. I’d recommend reading it thoroughly. A few summary key points:
- All states and territories, except for Connecticut, Massachusetts and Puerto Rico now allow surcharging. Even if they have laws on the books prohibiting it, courts have ruled those to be unenforceable.
- You can never (with no exceptions) put surcharges on debit or prepaid cards. This is prohibited by federal law as well as by all card issuers..
- There are specific rules about caps, notification requirements to Visa & Mastercard, signage that must be posted in stores and on websites, etc, that must be followed.
If you decide to go ahead and do this, Square has a Service Charge section in your dashboard’s Account & Settings area. Keep in mind that this will not automatically add to in-person orders, however — only to online orders if you specify that. So someone is going to have to add that charge for in person orders unless your kiosk (you didn’t say whose kiosk you are using) allows you to automatically add one. Definitely check with your kiosk software first to see.
Many sellers (myself included) have opted to take a simpler route that no one notices. I have just added the cost of card processing into the published cost of my products. Yes, everyone pays them that way, but in 11 years no one has ever said a word. Another simpler option would be to offer cash discounts to your cash-paying customers, if you accept cash. When a customer tells you they want to pay in cash, you could first add the discount to their transaction before closing it.
Lastly, I’ll point out that I read an article recently about Mastercard, Visa, and Amex sending out secret shoppers to test sellers’ compliance with their rules. The costs of violation are pretty steep — in the thousands per violation, with the distinct possibility of losing card processing privileges. I mention that only as a word to the wise.
If you have any other questions, don’t hesitate to ask them. However, there’s no need to ask if there is a possibility that Square will all automatic addition of surcharges to in person orders. I have it on very good authority from lots of experience that this will not happen anytime soon.
Regards,
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
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