Apply a Surcharge to Square Sales
Create a credit card surcharge on Square Dashboard and instantly add it to any purchase from your Point of Sale during checkout. Service charges can be percentage-based or a fixed amount that won’t change based on the purchase cost. You can also assign taxes to a surcharge to have taxes automatically taken out during checkout.
Credit and debit card surcharge permissions may vary by state, regulatory, or card network rules. Contact a tax professional or your local government for further guidance on whether your area permits surcharges.
Calculate Surcharge Fees
Square applies a fee is taken out of the total amount of the transaction, including tax, tips, and any added surcharges.
The following is an example of a swiped $100.00 payment with an added surcharge.
Let’s say you added a surcharge of $2.70 to account for the Square fee for tapped, dipped, or swiped cards:. The total for the payment plus the service charge would be $100 + 2.60 + 0.10¢ or $102.70.
If you charge your customer a total $102.70, Square will apply a fee to the total payment, so $102.70 x 2.6% + 10¢ or $2.77.
To determine the transfer you’ll receive for this payment, subtract the fee from the total payment amount, $102.70 – $2.77 = $99.93.
Following this example, $99.93 will be transferred to your linked bank account.
Create and Apply Surcharges
You can create various service charges from your Dashboard and apply them on the Point of Sale app or the Invoices app.
Note: You will need to upgrade to the newly redesigned Square Point of Sale app and run the latest version of the app to use the free service charge feature.. Follow our guide to get started with the newest version of Square Point of Sale.
Set up service charges
To create and edit service charges online:
1. Go to Account & Settings in your online Square Dashboard.
2. Click Business > Service charges > Create a service charge.
3. Name your charge, choose if you want a percentage-based charge (%) or a fixed service charge ($), and enter the amount of the charge.
4. Choose the location where the charge applies, and add any taxes that apply.
5. Click Save to add your new service charge.
Apply service charges to a sale
Once you create a service charge on your Square Dashboard, you can manually apply it to transactions from your Point of Sale, the Invoices app, or Square Dashboard. You can add service charges to orders that include items, custom amounts, or both. You cannot apply a service charge multiple times on the same sale or invoice, though.
From the Point of Sale app:
Go to the checkout screen, then tap Library.
You can search for service charges by name, or tap the Service Charge category.
Choose all of the service charges that apply to the sale.
Tap Review Sale to check the details of the transaction.
The service charge will show as a line item on your customer’s receipt and in your transaction report details.
From the Invoices app:
Log in to the Invoices app and create a new invoice.
Tap Add a line item to apply a service charge.
Select any preexisting service charges you want to apply to the invoice.
Fill out the rest of your invoice and send it as you normally would.
The service charge will show as a line item in your customer’s invoice and receipt and in your report details.
From Invoices on Dashboard:
Log in to your online Square Dashboard and go to Invoices.
Select Send an invoice and fill out your invoice details.Within “Line items,” select Add a service charge.
Create a new service charge or choose an existing service charge. Indicate the amount of the service charge and add sales tax if needed.
Click Add to apply the service charge to your invoice.
Complete the rest of your invoice and send it to your buyer as you normally would.