Apply a Service Charge with Square for Retail
With Square pour détaillants, you can create and apply a fixed percentage or a manual amount as a service charge to your items and sales. Service charges are available on Square Retail POS app on Square Terminal, Square Register, and compatible iOS devices.
Service charges, like shipping fees, bag fees or pass-through fees help to offset your operational costs. You can add service charges to retail orders that include items, custom amounts, or both. You cannot apply a service charge multiple times on the same sale or invoice.
Note: Service charges are available with all Square for Retail Free, Plus, and Premium subscriptions.
Enable Service Charges
Go to Account & Settings > Business information > service charges on your online Square Dashboard.
Click Create service charge.
Name your service charge. Note: This name will be displayed on customer receipts and order summaries.
Select a service charge type as an amount or percentage.
Select the relevant locations.
Choose your sales tax configuration as taxable (apportioned taxes) or non-taxable.
Click Save.
Add Service Charges
Once you create a service charge from your online Square Dashboard, you can manually apply it to transactions via the Square Retail POS app.
Add service charges to item grid
You can add service charges to the items grid on your device so you can easily access and apply at checkout. To do so:
From the Checkout screen, long press on a tile then tap Edit tile grid.
Under Add to page, tap Action.
Tick the Individual service charge action tile checkbox.
Select applicable service charges.
Tap Done.
From there, you can move the tile to rearrange or tap the Service charges tile to make edits at any time.
Add service charge to items
From the Square Retail POS app:
Tap All items from the Checkout screen or tap ≡ More > Items.
Select the applicable items to open the item details page.
Enable the relevant service charges, then tap Save Changes.
Add service charge to sales
From the Square Retail POS app:
Add items to cart.
Tap the relevant Service charges tile in the item grid. If the service charge is variable, manually enter the percentage or dollar amount.
Configure the service charge settings by editing the apportioned or non-apportioned sales taxes.
Review the cart, then tap Charge.
To remove the service charge from the cart, swipe left, then tap Delete.
Service Charge Type
| Service Charge | Description |
|---|---|
| Manual Service Charge | Can be percentage based or a fixed amount. Service charges are created in your Square Dashboard and applied on the Point of Sale. For example, if a delivery fee is always 3%, that percentage would be set as a manual service charge added to the bill. |
| Variable Service Charge | Exact amount is decided at checkout. Once a service charge is added to the bill, you can select the value or percentage used for this particular fee. |
Taxes
| Tax | Description |
|---|---|
| Nontaxable | The amount of the service charge is not impacted by any tax rates. |
| Tax Assigned | These service charges are taxable, and the entire service charge will be taxed at the assigned rate. |
| Tax Apportioned | The service charge inherits the tax rate from the items in the cart. If there are two items in the cart and one has a tax rate of 0% and the other has a tax rate of 4%, the service charge will be taxed in proportion to the value of the two items and their respective tax rates. |
Learn more about service charges with Square.
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 you consult with a professional.