Square payment surcharge

This feature is only available to Square merchants based in Australia

Overview

As a Square seller, you can enable this feature in the Payment Service step of the setup wizard to pass the Square payment surcharge to customers on Xero invoices paid via Square.

Setup

  1. Switch ON the Payment Surcharge toggle.

  2. Set the Payment Surcharge percentage*.

  3. Review/Apply the relevant Account, Tax and Fees mapping

*IMPORTANT – In Australia, the Reserve Bank of Australia (RBA) has set rules on how you can surcharge card payments, and the Australian Competition and Consumer Commission enforces these rules. The surcharge rate can’t be higher than the amount you incur to process card transactions — your ‘Cost of Acceptance.’ It is your responsibility to comply with applicable laws concerning surcharging. Learn more.

Xero invoice

After activation, Xero invoices will be updated to include the payment surcharge after customers click the “Pay Now” button and proceed with their card payment through the Square Checkout.

For customers who are choosing to pay via other payment methods (e.g. Bank transfer) no payment surcharge transaction will be present on the Xero invoice.

For customers receiving a Xero invoice who do not wish to pay by card we recommend adding a disclaimer to your Xero invoice template stating that “Additional transaction fees may apply.”

Square Checkout

The payment surcharge will be added as a line item to the “Order Details” section.

Please note that the tax amount will be calculated to include the on-charge fee, which is taxable.

Once the payment is successfully submitted, the Square payment surcharge will be added as a line item to the Xero invoice, which will also be marked as paid as part of the normal payment integration flow.

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