e-gift card fees

[chophouse119]

Hi! I added a "service fee" to my e-gift so it will help cover Square's processing fee but it's not working. My customer is not being charged for this fee that I already set. Has anyone had the same issue?

[HC_Charlie]

Hello @chophouse119 thanks for your post. Can you tell me a bit more about how you added this service fee? I am not aware of how to automatically apply any extra fee to the purchase of gift cards (is this what you're talking about an e-gift?), so I am not sure how you have set this up in your system.

Not sure if this helps, but here's an article pertaining to services fees:

https://squareup.com/help/us/en/article/5671-can-i-apply-a-surcharge-to-square-sales

[chophouse119]

Hi @HC_Charlie !

Thanks for getting back to me. 

I added this through ACCOUNT SETTINGS> BUSINESS INFO> SERVICE CHARGES. Once I got to service charges it allowed me to add a "Service Charge" name it (which I named "service fee") and add the amount type and number that I wanted. 

Please let me know if I can provide any additional information. 

[HC_Charlie]

@chophouse119thanks for the additional info. Here's some more clarification that may help...

https://squareup.com/help/us/en/article/7625-get-started-with-service-charges

It looks like when you create the service charge, there is a toggle button to select that would auto apply the service charge to online orders, be sure that is selected when the charge was create...however...Automatic service charges only apply to Square Online orders fulfilled via Pickup, Delivery, or Self-serve Ordering. You must also have item-level taxes enabled to apply automatic service charges for these fulfillment types.

So I'm thinking that based on this info if the everything is set according to the directions, but the online person buying the item chooses to have the item shipped (versus pickup, delivery, or self-serve) then the service charge may still not auto apply.

This screen shot below also shows some info from the above link, that seems to indicate you have to enable the service charge within Square Online Checkout through Online Checkout > General > Service charges > Add service charge. But again, it says it may only work for certain types of transactions.

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There have been many discussions regarding service fees and credit card processing fees, and how to potentially recoup the cost of transactions. Many sellers recommend against adding on extra fees as most customers find this unfriendly or may feel "nickle and dimed", turning off customers from your business. Some suggestions include either just righting off this as a business expense on your taxes (CC processing fees are considered a normal cost of doing business and are deductible), or some sellers slightly raise the prices on all their items/services across the board to make up any additional expenses incurred.

I hope this additional info may help with your issue. Maybe another Square Seller will have an alternative solution for the service fee issue.

[chophouse119]

Thank you so much for all this information. It looks like I have it set up correctly but I don't have that "Automatically Apply" button you're mentioning. Is this "button" outside of the Service Charge page that I'm in? Do i need to sign up for Square Online to do so?