What is the difference between a delivery fee and a service charge?

[manousheh403]

When you go to Online> Settings > Pickup & Delivery, then edit the location you can see an option for "Delivery Fee" and an option for "Service Fee".  The Service Fee says that we receive the amount charge minus standard processing fees.  Delivery Fee says nothing.  I know that you can use a percentage for Service Fee, but what other differences are there?  Does Square not charge processing fees on Delivery Fee?

[Goldneye]

HI, hopefully this Square Support page will help.

https://squareup.com/help/us/en/article/6925-on-demand-delivery-faq

Square charges a $1.50 dispatch fee to your business for orders placed through On-Demand Delivery.

The Delivery Fee charged to your customer is a variable fee charged by the delivery service provider, based on delivery distance and other factors.

[manousheh403]

No offense, but you did not answer my question and I did not mark this as a best answer so I'm not sure why it got marked.  I'm not asking anything about On-Demand delivery fees.  

My question is about the difference between service fee and delivery fee, just like in the title and body of the question.  If I could post a screenshot I'd show you, or you could follow the instructions I laid out and go to the page to see the two options in front of you.  Once you're there, you will see there is service fee and delivery fee.  Delivery fee can be set to free, free with certain order size, or charge for all orders.  Service fee can be a set amount or a percentage of total.

[Goldneye]

HI, from the link provided.

Service Fee. If you provide delivery using your own delivery drivers. It is common to charge customers a service fee for the convenience of delivery, and we would recommend implementing a service fee that helps you cover the increased fees of doing business online.  

Delivery Fee.  The Delivery Fee charged to your customer is a variable fee charged by the delivery service provider, based on delivery distance and other factors.  ex.Postmates, DoorDash

The options given are to help you decide how your business wants to handle the additional fees.  You can choose to cover the fee, pass the delivery costs on to your customers, or cover delivery for orders over a certain amount (e.g. free delivery for orders over $50).

The fees are charged when using On-Demand Delivery.  Decide which charges you are agreeable to and apply to your business.

[manousheh403 · Accepted solution]

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@Goldneye wrote:

HI, from the link provided.

Service Fee. If you provide delivery using your own delivery drivers. It is common to charge customers a service fee for the convenience of delivery, and we would recommend implementing a service fee that helps you cover the increased fees of doing business online.  

Delivery Fee.  The Delivery Fee charged to your customer is a variable fee charged by the delivery service provider, based on delivery distance and other factors.  ex.Postmates, DoorDash

The options given are to help you decide how your business wants to handle the additional fees.  You can choose to cover the fee, pass the delivery costs on to your customers, or cover delivery for orders over a certain amount (e.g. free delivery for orders over $50).

The fees are charged when using On-Demand Delivery.  Decide which charges you are agreeable to and apply to your business.

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I don't see anywhere in that link that the Delivery Fee is only an On-Demand Fee.  There does not seem to be any difference to me between the Service Fee and the Delivery Fee except that they provide different functionality (ex. using a percentage or being able to charge a fee when the order is a certain amount).  I guess this validates it, thanks.

If I turn on Delivery Fee, and don't use the On-Demand Delivery, it will still apply a delivery fee to my customers.  Sounds like the same definition provided for Service Fee.

[Eb2016]

I need to have the option to add a delivery fee to IN STORE PICKUP orders. These are the same increased cost from online, and it is available for delivery, can you PLEASE add it to the pickup portion of the ordering on weebly. I will have to change providers if this isnt changed or implemented. 

[BernadetteA]

Hi @Eb2016 This is a feature that the team is working on adding, although I do not have an eta to provide at this time. We'll try to keep these boards updated as we hear more news on the feature. 

[Eb2016]

Thanks for the reply, although I will have to switch to toast this month if the service feature isnt added to the online platform. Every other carrier allows this. Thanks...

[JustinC]

@Eb2016 We hate to see you go but we understand if not having this feature is a deal breaker. 

Our door is always open in case you decide to come back 

🙂

[frenchifornia]

Hello Bernadettea,

It's exactly what I need, a fee for pickup order online! Do you have an ETA now? After a year?

Thanks

Thomas

[Arie]

Hi @frenchifornia,

Just stepping in for @bernadette here! While we don't have an update on this feature at the moment, we'll highlight this with our product team and keep you updated in this thread. 

[Eb2016]

I just got notice that a service fee percentage option has been added to the Self Service option. Will this option be added to online order for pickup now? Why add it to Self-serve and Delivery, but not pickup? I don't understand what the hold up on this is. 

Thanks

[AshleyK]

@Eb2016 Thank you for asking this. I can see why it would be important to have this feature for pickup orders as well. We are still tracking requests for this, but I think this was specifically to help alleviate the fees that come with delivery charges. We don't charge delivery fees on pickup orders. I think that's why you're experiencing the difference here.

[Eb2016]

Hi Ashley,

Ok... then why was feature just added to Self-service orders then too then?

I need an timeline on when this feature will be added to pickup. 

[ToughSkins]

Why does Square get the .50 delivery fee when selecting the delivery option and using your own couriers?  I noticed it is added to the process fee.  Shouldn't this .50 go to my total amount received?

[Valentina]

Hi there, @ToughSkins - you can learn more about the $0.50 fee here.

P.S. Welcome to the Seller Community ✨

[poeandco]

Really hoping that square will allow pickup service fees asap. Really necessary for the food industry...also if we can change the name of it to something else. 

[Hopz]

Good morning all. I agree it is extremely important that were able to add a service fee for in-store pickup orders. We run a healthy meal prep company in about a third of all of our sales come in through the online ordering process for in-store pickup. Being able to add a 2 or $3 fee will really help offset our employee and operational costs. 

[donovansdish]

I am in need of placing a Service Fee on Pickup Orders in addition to the Service Fee already set up for Delivery Orders. It is my understanding that this is not available yet, but in the works! 

[tonyd]

There's two different things you're talking about.  Both are under service and delivery fees.  If you set in a standard delivery charge then yes, delivery fee and service fee are pretty much the same thing. If gas prices go through the roof, as is currently is, you can tack on a surcharge for fuel instead of raising the delivery fee. It helps to explain to your customers the reason for the increase.  The second thing you talked about was the "On demand delivery"  That has absolutely NOTHING to do with what you charge for delivery. You currently have only two options in that respect, neither of them good . 1) My own couriers .50/delivery  OR 2) On-Demand delivery (which is a third party courier fee)        Here's what I want to make PERFECTLY CLEAR. If you are an eatery and you offer delivery using YOUR OWN delivery people Square will charge you .50 for EVERY delivery order your online store fulfills.  I don't understand why and I find it completely ridiculous.  You'll find this charge under your dashboard/reports/sales summary the second to last line labeled DELIVERY RELATED FEES.   I asked 20 different people at Square and got 20 different answers was to what the "delivery related fees" pertained to. It's ridiculous that they pull .50/delivery from my 100+ online delivery orders /month.  Isn;t it enough that they charge you 2.9%+ .30, now they get you for 2.9%+.30+.50 for online delivery orders, it's costing me $50+ every month.  So a word to the wise. If you normally charge $4 for delivery to people ordering from you direct, make sure your Square delivery fee is set to at least $4.50 to make up for the .50 they're stealing from you.