Set up your card surcharges beta
About card surcharges
A surcharge is an additional amount or percentage that sellers can add to pass on a card processing fee to a buyer. You can set it up as a percentage amount as long as it doesn’t go over your processing cost. With Square, the fee is the same regardless of card type. With Square’s automatic card surcharge beta, you can pass on processing fees associated with card payments. The card surcharge will be automatically applied when a customer pays with a card in the Square Point of Sale, Square Restaurants or Square Retail POS apps on compatible iOS devices, Android devices, Square Terminal, and Square Register.
| Have you set up manual surcharge workarounds? To use automatic card surcharges, learn how to remove any existing sales taxes, service charges, or automatic gratuity (Square for Restaurants only) from your account. |
Before you begin
If you’ve previously set up manual sales taxes, service charges, or auto-gratuity (on Square for Restaurants) in place of a surcharge, follow this guide to delete existing manual service charges on your Square account so you can use this beta feature.
The card surcharges feature is not available if you use Square Terminal in connected mode, if you use Open Tickets to save orders, or if you use Split Tender payments.
All card transactions can be surcharged, but you must only charge your “Cost of Acceptance”. You cannot surcharge more for Afterpay (see below) or Square Gift Cards.
For in-store Afterpay transactions, you can apply your card surcharge to cover the payment processing portion of the fee — that’s your Cost of Acceptance. Otherwise, you can’t impose a surcharge on a customer using Afterpay as their payment method.
Step 1: Calculate your cost of acceptance
In Australia, the Reserve Bank of Australia (RBA) has set rules on how you can surcharge. The surcharge rate can’t be higher than the amount you incur to process card transactions — your “Cost of Acceptance”. If you have more than one processing rate with Square, you must only surcharge up to the lowest processing rate.
Learn more about surcharging on the ACCC’s guidance on surcharging, and see Square’s Payment Terms.
To review your current card processing fees visit Settings > Pricing & Subscriptions via your Square Dashboard.
Step 2: Create a card surcharge
You can only create one automatic card surcharge at a time. To do so:
Sign in to Square Dashboard and go to Settings > Account & Settings > Payments > Service charges.
Click Create card surcharge.
Enter a surcharge amount to cover your card processing fees. Card surcharges must not exceed your lowest processing fee.
Determine if the surcharge will apply at some or all of your locations, and whether your surcharge will be taxable. Click Save.
Choose to either Print a Surcharge Display Kit to inform your customers or click X to exit the page if your device is not connected to a printer.
You can delete a surcharge at any time. To do so:
Sign in to Square Dashboard and go to Account & Settings > Payments > Service charges.
Click the surcharge, then click Delete card surcharge > Confirm.
Step 3: Notify your customers of card surcharges
From the Service charges tab on your Square Dashboard, click (•••) next to the relevant card surcharge to edit, delete, or print your surcharge display kit.
Ensure your customers know about card surcharges by posting a Surcharge Display Kit or disclose your surcharge in a prominent location, including displaying a sign at the point of sale.
Step 4: Checkout with surcharges
Once you’ve created the surcharge, start processing card payments via Square Point of Sale, Square Restaurant or Square Retail POS apps on compatible iOS devices, Android devices, Square Terminal, and Square Register.
The surcharge will automatically display on the “Charge” screen at checkout and via the digital receipts.
Step 5: View and export surcharge reporting
Sign in to your Square Dashboard and go to Reporting > Reports > Service charges.
Apply any applicable filters. Card Surcharge is presented as its own line item based on the name of the charge.
You can export the report as a CSV file by clicking Export in the top-right corner.
Support and feedback
For questions or feedback on this new experience, join the Card Surcharges Group in the Square Beta Community or email us at beta-au@squareup.com. Within the Beta Seller Community, you can share feedback and get involved in live discussions directly with our product team and other members of this beta program.
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Disclaimer: Please note that 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 tax obligations or where to find the relevant information, we suggest that you consult with a professional.