How do I add a surcharge to a sale?

[Tammyfalcon]

This post has been edited by a moderator. Learn more about Square's fees in our Support Center.

How do I add the fee to the customers bill?

[Helen]

This reply was created from merging an existing thread: “Is there a way this service auto calculates the fees?”

Hello @Lisetteca1! Is sounds like you're adding a surcharge to card payments so I've moved your post here. Please read Sean's best answer about best practices for adding a surcharge, and the workarounds suggested by other sellers in this thread! 

[KHarvey390]

I'm in illiIlli and allowed to choose wether or not I will do a survharge for credit card payments. How can I apply a 3% surcharge to credit/debit card purchases? 

[VanKalkerFarms]

the easiest way is to make an item called "convenience fee" or something like it.  then add that item and calculate the total times .0283 to get your fee.  

so $100 total times .0283 = $2.83

so charge a total of $102.83 and you will get $100 deposit from Square.

see this article for more info.  https://squareup.com/help/us/en/article/5671 and this thread with some discussions in it. https://www.sellercommunity.com/t5/Questions-How-To/How-do-I-add-a-surcharge-to-my-customers-bill/m-...

On a personal note as a business owner and a customer, just build the credit card fee into your prices just like you build your property taxes, labor wages, utilities, workers compensation, Rent, cost of goods, profit margin, etc into your price now.  It just looks like you are pinching pennies from your customer and may turn them off from buying in my opinion.  

[duvaljohnh]

Is there a way to add a fee to credit card sales only and not cash sales?

As I am a small retailer, I would like to pass on credit card processing fees to the customer. Is there a way to automatically do this on square?

I have seen options of adding a modifier as a percentage but I think that would apply to all sales and not only credit card sales. I also saw that someone suggested that I could manually add a fee, but that would be entirely too burdensome to calculate the rate each time and then to add it to only credit card slaes.

[Vivienne]

This is my question too!

[duvaljohnh]

https://www.sellercommunity.com/t5/Questions-How-To/How-do-I-add-a-surcharge-to-my-customers-bill/m-...

I did find this thread AFTER posting my question. It may answer your questions, although some of the "how to" was a little confusing without the app immediately in front of me right now. (i.e. especially how to create it to apply for card sales and not cash sales - something of "dining options" - as I am a retail location, I have never viewed dining options?)

Hope that helps.

[Pablitostacos]

This reply created from merging an existing thread: "I want to charge a 3% fee to customers who use credit cards, how do I set that up?" The author has been notified via email.

Any thoughts? 

[LSR1]

This reply was created from merging an existing thread

Is there a way to add a % to the total amount, using the Square reader? To add the square and CC fees.

[Helen]

Hey LSR1! Take a look at the Best Answer to this question Sean provided here!

[HillBillyCorner]

This comment was created by merging the thread "How do I add a surcharge to my customers bill?"

Having trouble with adding the 3.7% fee to the end of the receipt to show customers the processing fee and taxes. Help!

[TheAsset]

See the best answer quoted above! 

[argolfer]

[Note (2019): Square's per transaction fee for card payments that are dipped, tapped or swiped is 2.6% + 10¢. Learn more in our Support Center.]

because the "real" fee is not 2.75%, they tagging you with another charge once you add the service fee.  Its like you pay for a hot dog at the ball park for $5, and pay tax of $.40 then the vendor comes back and charges you again for the total amount of $5.40.  that is not legal.  A consumer who is a bigger payor is going to bring this up with the IRS.

[Chad]

Hello @argolfer, it sounds like you're referring to adding a surcharge to pass along the processing fee to your customer. 

For this you would want the thread How do I add a surcharge to my customers bill? 

[cmusicshop]

At the risk of being boo'd, fees like credit card processing charges are a cost of doing business. If the fee is a real issue you might want to rethink your business model. Besides possibly being illegal and in violation of Visa/Mastercard's policies it is not really ideal to ask the customer to pay merchant fees directly. The customer indirectly pays it as well as your phone bill, electric, rent, etc. Could you imagine asking a surcharge for the electricity the customer used? You only notice the processing because the sale was $10 but you only get $9.725 in your account. Does any other business 'directly' ask you to pay extra for using a credit card? I'd be furious, wouldn't you?

Cash discounts were suggested and I believe somewhere I suggested simply raising your prices a few bucks. Nothing unethical about that! New price $11 instead of $10 - cover your fees and make a few extra cents. I get it, business is hard and we have to make every dime work but some of the responses on this thread worried me that people might sacrifice a good customer experience for a few bucks.

[VanKalkerFarms]

100% agree.  You don't add a fee for you lease, or your insurance, or your employee, etc so why people get so hung up on credit card fees I don't understand.  It is as you said the cost of doing business.

handling cash and checks has costs to but they are invisible as they aren't specifically charged to you, but counting and recounting cash a  cash drawer balance takes an employees time and then the person counting the nightly deposit aren't working for free, plus someone driving to the bank etc.  same with checks, plus bounced checks and chasing down the payments and or writing them off costs money too.

everyone can run their business how they want but I sure feel people get hung up on worrying about saving pennies when they should be worried about making dollars.

[ChrisatKK]

Is there a way to create CC fees as an item that will autofill based on transaction total?

[ashc]

Hey @ChrisatKK! Welcome to the Community!

I'm moving your post to a thread in the Community that goes over surcharges and the process of being able to add them.

You'll want to make sure you go over these steps listed on the first page before applying them. There's some sellers in this thread that go over how they personally do it as well. 

[TattooAvenue]

I have recently learned that you can charge the client for processing fees during their transactions. Does anyone know how to set that up?

[ashc]

Hi @TattooAvenue!

I moved your post to a relevant thread in the Community around surcharges.

You can check out each page to see how different sellers are doing this and the things you'll want to check into while considering it. 

[Joe]

Hey there, @Dhorton. Thanks for posting! - and welcome to the Seller Community 👋 Happy to have you.

When it comes to adding a surcharge for your customers, you may want to see how other Sellers have suggested. In addition, you can learn more about how Square processing fees work here: Understanding Our Fees | Square Payments.

Also, we have an informative video too!

We recommend talking to a tax or legal professional for guidance on whether surcharges are permitted in your area. Should you decide to apply a surcharge, it is your responsibility to meet all legal and card network requirements. You can learn more about surcharges here. 

[This reply was edited by a moderator on August 26, 2020 to offer more visibility into Square's pricing structure.]

[Giuseppe]

The best way to add a cc/debit fee to your register is to  create a new tax and name it cc/debit. THEN apply the  surcharge to all ITEMS.

Then create a button that discounts the full amount of the tax with the push of a cash discount button that will allow the pos to take the full surcharge off.

Hey Joe best wishes but the canned answer is bad AND MISLEADING. Square knows they can fix this quickly but they don't want people to be charging fees.