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How to Charge Square Customer Processing Fee: A Short Explainer

How to Charge Square Customer Processing Fee: A Short Explainer

In the world of commerce, there are several ways to charge your customers with different fees. If you use Square to take payments from your customers, you might wonder how to apply a processing fee to your customers. You can’t just process their transactions and give them back their change; they expect that you will charge them something for the service. What are your options?

In this article, we will discuss various methods of charging the Square Customer Processing Fee. This way, your customers will know what they are getting for their money beyond just seeing a transaction cost in the POS terminal.

Keep reading to learn more about Square fees:

1. How to Charge Square Customer Processing Fee – Invoicing

2. How to Charge Square Customer Processing Fee – Virtual Terminal

3. How to Charge Square Customer Processing Fee – Pay Per Use

4. How to Charge Square Customer Processing Fee – Monthly Statements

5. How to Charge Square Customer Processing Fee – iPad POS only merchants

6. Conclusion

How to Charge Square Customer Processing Fee – Invoicing

If you are already offering a product or service, you may want to invoice your customers for their payment. 

On the Square dashboard, you can select Invoice as a payment method for your customers. In this case, the customer will see their payment selected as an invoice, choose their payment method, and enter their contact information. As soon as they pay the invoice amount, you can mark it as paid to complete the transaction and generate a receipt. 

If you are a product-based business, such as a flower shop or bakery that has pre-baked goods available for purchase, you can also charge customers directly with an invoice. Set the invoice amount to be their total order amount, and then add a line item for tax. Your customers will then have the option to pay the invoice directly from their bank account or credit card.

How to Charge Square Customer Processing Fee – Virtual Terminal

Another way to charge your customers a fee is by using the virtual terminal. With Square, you can quickly run transactions from your computer using an online terminal. It’s an optional feature that you can turn on or off in your settings once you have started processing payments with Square. 

  • To turn on the virtual terminal, click “Settings” and select “Terminal” from the menu on the left-hand side of the screen. 
  • Then, select “Virtual Terminal” from the options on the right side of the screen and click “Enable”. You will then see a screen telling you where to click to enter your desired fees. 

By charging with the virtual terminal, you can adjust your fees with each transaction. It means you can charge your customers a different fee each time they purchase. You can also change the fees as often as you like, so if you have a busy convention season, you can charge a higher fee to make more money.

How to Charge Square Customer Processing Fee – Pay Per Use

Another way to charge your customers a fee is by applying a per-use fee. At this point, you charge them a fee every time they purchase with your business. 

However, you should note that Square does not allow you to charge your customers a per-use fee for your debit card reader, only for your credit card reader. 

To utilize a per-use fee, you must select the per-use option during the initial setting of your account. It will allow you to charge the amount you want to each customer every time they swipe their card. 

If you want to change the per-use fee, later on, you can do so in your account settings. 

You might want to know that Square charges a per-transaction fee of 2.75% for credit card processing and 3.95% for debit card processing. This means you will pay a fee for each transaction, including the per-use fee.

How to Charge Square Customer Processing Fee – Monthly Statements

You can charge your customers a fee by including it on their monthly statements. It can work well for businesses that provide a service that is billed on a monthly basis, such as software or website design. 

You can select Monthly Billing as your payment method and enter the amount you want to bill your customer each month. You can also invoice your customer for the amount at the end of the month so that they only see one payment each month. 

It’s good to remember that you must have your customers’ billing information on file in Square, including customer name and address and their preferred payment method. 

To set up monthly billing, click “Settings” and select “Billing” from the menu on the left side of the screen. Then, click “Add New Billing Plan” and follow the instructions to set up your billing information.

How to Charge Square Customer Processing Fee – iPad POS only merchants

One more option is to combine monthly statements and per-use fees. You will set the amount you want to charge customers each month and then charge them a per-use fee each time they purchase. To do this, you need to add a line item to the customer’s monthly statement for the fee. This way, the customer can see that you are charging them a monthly fee and a per-use fee each time they make a purchase. 

Make sure that you are viewing the customer’s statement in the Square Dashboard. You can also mark the per-use fee as paid so that it is reflected as paid on the customer’s statement.

Conclusion

The best way to charge your customer fees greatly depends on your business needs. Invoicing might be the most familiar method for your customers, while a virtual terminal might be the easiest for you to manage. However, the most important thing is to be transparent about your fees to let the customers know that the fees are worth the service that you are providing.

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Barbara Malisz-Talha

Barbara Malisz-Talha

Barbara is a writer at Synder who looks for a human side within the world of economics, always seeing people behind the numbers. She’s fascinated by the intersection of technology and psychology, exploring products and apps that help us live better lives. Barbara has MA Hons in Psychology and is passionate about behavioral economics, marketing, and positive psychology.

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