How to Add Credit Card Fee on Square
Square is a popular payment processing platform that allows businesses to accept credit card payments easily and securely. One of the features Square offers is the ability for businesses to add a credit card fee to each transaction. This can help offset the costs associated with processing credit card payments and improve the overall profitability of your business. In this article, we will guide you through the process of adding a credit card fee on Square and answer some frequently asked questions.
Step 1: Enable Card Processing Fees
To add a credit card fee on Square, you first need to enable card processing fees in your Square account. Here’s how:
1. Log in to your Square Dashboard using your username and password.
2. Click on “Settings” in the left-hand sidebar.
3. Select “Payments” from the list of options.
4. Scroll down and click on “Card Processing Fees.”
5. Toggle the switch to enable card processing fees.
Step 2: Configure the Card Processing Fee
Once you have enabled card processing fees, you can configure the fee amount and other settings. Here’s how:
1. In the “Card Processing Fees” section, click on “Edit.”
2. Enter the desired percentage or flat fee amount you want to charge for credit card payments.
3. Choose whether you want to apply the fee to all card types or specific card brands.
4. You can also choose to apply the fee to all transactions or only on transactions above a certain amount.
5. Click on “Save” to apply the changes.
Step 3: Inform Customers About the Credit Card Fee
It is important to inform your customers about the credit card fee to avoid any surprises or misunderstandings. Here are some ways you can communicate the fee to your customers:
1. Display a prominent sign at your checkout counter or near your payment terminal informing customers about the credit card fee.
2. Update your website, social media profiles, and any other online platforms to mention the credit card fee.
3. Train your staff to verbally inform customers about the fee when they make a payment.
Q1: Can I legally add a credit card fee?
A1: The legality of adding a credit card fee depends on your jurisdiction. Some states or countries prohibit surcharging customers for credit card payments, while others allow it. Make sure to familiarize yourself with the laws and regulations in your area before implementing a credit card fee.
Q2: Can I charge different fees for different card types?
A2: Yes, Square allows you to charge different fees for different card types. You can choose to apply the fee to all card types or specific card brands, such as Visa or Mastercard.
Q3: Are there any restrictions on the credit card fee amount?
A3: While Square allows you to set your own fee amount, it’s important to consider the impact on your customers. Charging excessive fees may deter customers from using credit cards, potentially affecting your sales. It is recommended to set a reasonable fee that covers your processing costs without discouraging customers.
Q4: Can I waive the credit card fee for certain customers?
A4: Square does not currently offer the ability to waive the credit card fee for specific customers. The fee will be applied to all eligible transactions according to your configured settings.
Q5: How will the credit card fee appear on customer receipts?
A5: The credit card fee will be clearly listed as a separate line item on customer receipts generated by Square.
In conclusion, adding a credit card fee on Square can be a useful tool for businesses to offset the costs of processing credit card payments. By following the steps outlined in this article, you can easily enable and configure the fee on your Square account. However, it is essential to understand the legal implications and communicate the fee to your customers transparently.