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Beta Member

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

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?

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Beta Member

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

Best Answer

@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.


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.

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Message 5 of 5
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Super Seller

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

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.

Hope This Helps!
TERRI
Super Seller - Online Store Assistance
Resale Collection - Hanger Hues
Message 2 of 5
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Beta Member

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

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.

 

 

Message 3 of 5
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Super Seller

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

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.

Hope This Helps!
TERRI
Super Seller - Online Store Assistance
Resale Collection - Hanger Hues
Message 4 of 5
64 Views
Beta Member

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

Best Answer

@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.


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.

View Best Answer >

Message 5 of 5
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