Feature request - surcharges
When will it be possible to configure surcharges in Square?
I see some old discussion topics (2 years) saying it is on the roadmap.
There are several reasons why we need surcharges but the two big ones for me:
1. Apply a credit card surcharge to all card transactions
2. Apply a Sunday or public holiday surcharge. This is pretty essential in Australia due to the higher wage costs.
Needs to be automated and rules-based.
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Posted 05-11-2020
EDIT (July 2022): We've started to roll out Service Charges (AKA Surcharges) in Australia, which you can read more about here. The first iteration supports:
- The Square Point of Sale app
- Manually applied fixed ($) or variable (%) surcharges
In future iterations of Service Charges we hope to support:
- More Square products (eg Square for Restaurants, Square for Retail, Invoices etc)
- Automated service charges, so you won't need to manually add it
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Hey @mikesee,
I'm sorry to say that I don't have an update on surcharges right now.
We're still tracking feedback on this and it's a popular request from Australian sellers. For now we recommend building surcharging into the overall price of your goods as you might other operating expenses, or you can manually calculate a surcharge into the overall cost of a given transaction.
If you would like to pass on credit card processing charges to your customers, you can use the following to calculate what you would charge.
For transactions put through a Square Reader at 1.9%:
Transaction amount divided by 0.981
e.g. $100 / 0.981 = $101.94 - you'd add $1.94 as a 1.9% surcharge.
For “Card not Present” transactions at 2.2%:
Transaction amount divided by 0.978
E.g. $100 / 0.978 = $102.25 - you'd add $2.25 as a 2.2% surcharge.
For transactions put through Square Terminal at 1.6%:
Transaction amount divided by 0.984
e.g. $100 / 0.984 = $101.63 - you'd add $1.63 as a 1.6% surcharge.
Why Wouldn’t I Just Add 1.9% or 2.2%?
Square’s card processing fees are based on the overall transaction amount, so if you’re adding $1.90 to a $100 transaction, the transaction becomes $101.90, not $100. Using the above formulas accounts for this small change to the overall fee on transactions if you’re adding a surcharge
Should you decide to apply a surcharge, it is your responsibility adhere to Australian regulations as set out by the ACCC.