What are the Square fees charged to customers?

Decoding Square Gift Card Fees: What Customers Pay

Square offers a convenient way to create and manage gift cards, but understanding the associated fees is crucial before you start loading funds. While Square doesn’t directly charge customers for using the gift cards themselves (the recipient pays no fees when redeeming), there’s a key cost involved in loading the cards with money: a 2.5% fee.

This 2.5% fee applies to every instance of loading funds onto a physical Square gift card. This means it applies not only to the initial loading of the card but also to every subsequent reload. So, if you load $100 onto a gift card, you’ll actually pay $102.50. This consistent fee structure ensures transparency, but it’s important to factor it into your budgeting.

Beyond the base 2.5% loading fee, additional charges can arise depending on your chosen payment method. Square doesn’t explicitly list all possible scenarios, as this will vary based on the payment processor used and the customer’s specific account. However, using a credit card to load funds might incur an additional processing fee on top of the 2.5% fee, while using a debit card or bank transfer might not.

Therefore, it’s essential to pay close attention to the final cost displayed during the gift card loading process. Before confirming the transaction, review the total amount charged to ensure it accurately reflects the 2.5% loading fee plus any extra fees related to your chosen payment method. Contacting Square support directly or reviewing your payment provider’s statements can clarify any unexpected charges.

In short, while Square gift cards offer a practical gifting solution, remember that a 2.5% fee applies to every instance of loading funds. Be mindful of potential additional fees from your payment method to avoid surprises and accurately budget for your gift card purchases. Transparency in pricing is key, and understanding these fees upfront will ensure a smoother and more cost-effective experience.