Can I Apply a Surcharge to Square Sales?

Merchants in the U.S. and U.S. territories can impose a surcharge on consumers when a credit card is used for payment though individual states have their own rules and regulations.

Important Notes About Surcharges

It is your responsibility to meet all legal and card network requirements and you must first notify both Visa and MasterCard.

The following states prohibit surcharges of any type: Colorado, Connecticut, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas

Calculating Surcharge Fees

Square’s 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 $2.75 to account for Square’s swiped card fee: $100 + 2.75 = $102.75

  • If you charge your customer a total $102.75, Square’s fee will be applied to the total payment: $102.75 x 2.75% = $2.83

  • To determine the deposit you’ll receive for this payment, subtract the fee from the total payment amount: $102.75 – $2.83 = $99.92

  • Following this example, $99.92 will be deposited to your linked bank account.

Some merchants have found third-party fee calculators helpful in understanding the amount to add as a surcharge. You can find these online or within the Apple App Store or Google Play.

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