Set up and manage credit card surcharges

About credit card surcharges 

A credit card surcharge is a percentage-based fee that you can add to credit card transactions to help offset card processing costs on business revenue. Once enabled, the Square Point of Sale and Square Restaurant POS apps automatically detect credit cards during checkout and apply your configured surcharge percentage to the total transaction. 

This feature ensures compliance with card network regulations and state laws while helping you recover processing fees.

Surcharging credit card transactions with Square is currently in a open beta.

Before you begin 

• Surcharges only apply to credit card transactions. Debit card transactions, tips, offline payments, and split tender payments can’t have surcharges applied. 

• Surcharges only work for in-person transactions at your point of sale, and aren’t currently supported for Square Kiosk, Square Invoices, Square Appointments, Connected Terminal, Virtual Terminal, or Square Online transactions.

• Surcharging is not allowed in Connecticut, Maine, or Puerto Rico, and many other states have specific rules about surcharges.

• Before setting up a surcharge, ensure you’ve reviewed any legal requirements for your business. It is the seller's responsibility to ensure compliance with local requirements.

• Surcharge configurations are capped at 3% of the total transaction in line with regulations.

Complete card network notification requirements 

The Visa and Mastercard credit card networks require all merchants to notify them at least 30 days before surcharging begins. Square can notify Visa on your behalf, but Mastercard requires merchants to do so individually. If you want to participate in the beta, please fill out the Merchant Surcharge Disclosure Form as soon as possible so you can start surcharging.

When filling out the form, use these details:

• Acquirer/processor name: Square

• Type of surcharge: Brand

• Payment channels: Select "Retail (face-to-face)" and "Telephone order"

• Start date: Choose a date that’s at least 30 days from submission

• Number of locations: Enter the total number of business locations where you'll implement surcharges

Set up your surcharge

Surcharges can be set up from Square Dashboard. To do so:

1. Sign in to Square Dashboard and go to Settings > Account & Settings > Payments > Service charges.

2. Click Create card surcharge.

3. Enter your surcharge percentage, up to a maximum of 3% of a sale.

4. If you have multiple business locations, select the applicable locations surcharges will be applied at and select whether surcharge is taxable or non-taxable.

5. Review and check the surcharge compliance notification regarding state and local laws > Next.

6. Review your surcharge signage kit > Print.

7. Click Done to save your configuration.

Once you set up your surcharge, your point of sale system will automatically add the configured surcharge to transactions when customers pay with credit cards at your business. Printed receipts will include a notice indicating that a surcharge will be added for credit card payments. 

Print and display required signage

To comply with network regulations, you must display surcharge notices at your business. Once you set up a card surcharge in Square Dashboard, you can go to Service charges page and click the print icon to print the generated sign. You can display the sign in two locations:

•    At your business entrance

•    At the point of sale counter

If you don’t have a counter where customers complete a payment, we recommend adding a note on your menu, at the table, or on devices used to take payment. You can create your own signage, but we recommend using Square's pre-made signs to ensure compliance. If you make your own signs, use the same wording and ensure the font size is the same size or larger than the font on the signs provided.

Edit your surcharge

1. Sign in to Square Dashboard and go to Settings > Account & Settings > Payments > Service charges.

2. Click the card surcharge to edit. 

3. Update your surcharge percentage amount, business locations surcharges apply to, or the sales tax amount.

4. Review and check the surcharge compliance notification regarding state and local laws > Next. 

5. Reprint your surcharge signage and display the signage at your business. 

6. Click Done when finished.

Delete your surcharge

Deleting a surcharge cannot be undone. To delete:

1. Sign in to Square Dashboard and go to Settings > Account & Settings > Payments > Service charges.

2. Click the card surcharge to delete.

3. Click Delete card surcharge > Confirm.  

View surcharge activity 

The Sales Summary and Payment Methods reports in Square Dashboard will have a card surcharge row so you can see the amounts collected for surcharging.

Learn how to set up analytics and reporting and how to view sales summary, sales trends and payment methods reports.

Related articles

• Accept payment cards with Square

• Customize payment types on Square Point of Sale

• Apply service charges

• Learn about Square fees

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.