Create and manage bottle deposit charges
About bottle deposit charges
Bottle deposit charges allow you to automatically add fees to eligible items at checkout to comply with local bottle deposit regulations. These charges are applied at the item level and appear separately on receipts, making it easy for both you and your customers to track these regulatory fees.
With Square's bottle deposit feature, you can:
Set up different deposit amounts based on container type and size
Apply deposits to specific items in your catalog
Automatically charge deposits at checkout
Process refunds when customers return containers
Note: While service charges are available to all Square sellers, please use Retail mode in the Square Point of Sale for the bottle deposit checkout experience.
Before you begin
Disclaimer: This guidance is general in nature and does not constitute legal, tax, or any other type of professional advice. If you are unsure about your legal obligations or where to find the relevant information, consider consulting with a professional.
Before setting up bottle deposit charges, you should:
Research the specific bottle deposit regulations that apply to your business location
Determine the deposit amounts required for different container types and sizes
Identify which items in your catalog require bottle deposits
Consider how you'll organize your bottle deposit charges (e.g., by container size, material type)
Once created and applied, the service charge will appear on your customer’s receipt.
Create bottle deposit charges
Bottle deposits are set up using service charges that are automatically applied to specific items.
Step 1: Create bottle deposit service charges
Sign in to your Square Dashboard and go to Settings > Account & Settings > Payments > Service charges.
Click Create service charge.
Enter a name for the bottle deposit charge that clearly identifies its purpose (e.g., "Bottle Deposit - $.20").
Select Amount type > Amount ($), and enter the amount of the deposit.
Select the location(s) where the charge applies and add any applicable taxes based on your local regulations.
Click Save.
Repeat these steps for each different bottle deposit amount you need to charge.
Step 2: Apply bottle deposit charges to items
After creating your bottle deposit service charges, you'll need to associate them with the appropriate items in your catalog:
Click the newly created and relevant bottle deposit service charge you want to apply to item(s) from the Service charges tab on your Square Dashboard.
Click Select next to Apply to items.
Tick the item(s) you want to add a bottle deposit service charge to then click Done.
Optionally toggle ON Schedule if you’d like the service charge to be applied at a certain day(s) and time(s).
Click Save.
If you have items with variations (e.g., different sizes of the same beverage), you can apply different bottle deposit amounts to each variant:
From your Square Dashboard, go to Items & services > Items > Item library.
Select an item with variations that require bottle deposits.
Click Edit checkout settings, then click Add next to Service charges.
Select the relevant Service charge for each variation.
Click Apply > Save.
Refund bottle deposit charges
When customers return containers for deposit refunds, you'll need to process these as unlinked refunds. You can issue an unlinked refund from your Square Register, Square Terminal, Square Stand, or iOS device. The detailed description you enter will appear in your reports to help you identify bottle deposits paid out.
From the Square POS app with retail mode enabled or from the Square Retail POS app:
Open your point of sale app and tap Transactions.
Tap Unlinked refund.
Enter the amount you wish to refund and a detailed description of the item.
Tap Next.
Choose a refund method, enter details, and select a reason for refund in the dropdown menu.
Tap Refund.