Offer the 4% Flat Rate in the OrderOut Reseller Portal
Your 4% link sets the merchant's card processing rate.
Steps
- Choose the pricing before you send the link. A link set to the 4% Flat Rate boards the merchant at a flat 4% card processing rate; a Rack Rate link boards them at 2.6% + $0.15. The link sets the rate the merchant is boarded at, and nothing about the customer's price changes. Changing it afterwards is possible but goes through Square.
- Tell the merchant what the 4% is before their first sale: it is what they pay Square on each card sale, not something added to the customer's total. On a $1.00 card sale about 96 cents reaches them. This one sentence is what prevents the surprise.
- If the merchant wants cash customers to pay less, have them raise their item prices first. In their Square Dashboard, under Items, every price is adjusted upward to cover the 4%, so the listed price is the card price. This is the merchant's own edit.
- Create the discount. In the merchant's Square Dashboard go to Items, then Discounts, then Create a Discount. Name it Cash Discount and set it as a percentage or a fixed amount, then save.
- Apply it at checkout on cash sales. When a customer pays cash, the cashier taps Discount, picks Cash Discount, then takes payment. It is a manual button every time — the discount is not applied by tender type, so Square will not apply it on its own.
- If a manual button will not work for the merchant, consider Square's built-in surcharge — automatic on credit card payments, capped at 3%, debit excluded — or a service charge, which applies to every transaction whatever the tender. Two things to check before you recommend it. Where does the merchant take payment? The surcharge does not run on Square Online, Virtual Terminal, Square Kiosk, Connected Terminal or mobile invoices. And where are they? State rules on surcharging still apply — some states prohibit it outright and some cap it below 3% — and compliance is the merchant's own responsibility, not something OrderOut advises on. Both are set up in the merchant's own Square Dashboard.
- Want a lower card rate instead of the 4%? Ask the OrderOut reseller team, and ask early. Square can set a custom rate on the link before the merchant signs up, or run a custom-pricing review afterwards, but it is case by case and Square decides.
Worth knowing
- The link chooses only the processing rate. Nothing on the OrderOut side, and nothing in the link, switches a merchant between a cash discount and a surcharge — the merchant sets either up in Square afterwards.
- A merchant already boarded at Rack Rate can still move to the 4%, but not through a new link. Square either sends the owner a rate change to sign electronically, or the merchant signs up again on a brand-new account through the 4% link. For the signing route Square's underwriting asks for the average ticket, the card volume and the card-present percentage. Bring it to the OrderOut reseller team — they will confirm the exact form Square wants.
- We understand a true dual-pricing capability is being worked on, with no date announced. Do not quote a merchant a timeline.
- Square's help center articles "Set up and manage credit card surcharges" and "Apply service charges" cover those screens step by step, and Square's own video walks through setting up modifiers and discounts. All three are linked below.
- Turning a surcharge on carries duties a cash discount does not. In the Square Dashboard under Account and Settings, then Payments, the merchant chooses the locations and whether it is taxable, acknowledges a state and local law notice, and prints the signage Square generates for the entrance or the counter — a merchant making their own signs must keep Square's wording and font size. Receipts then disclose the surcharge automatically. Tell them before they switch it on.
- Whether the rate or the discount behaves identically on Square Invoices and on online, card-not-present payments has not been confirmed to us. Ask the OrderOut reseller team rather than guessing.
- If a merchant was told the 4% would be added to the customer's total, correct it now. Nothing was mis-boarded: their account is at a flat 4% card rate, which is exactly what the link sets.
- The pricing is labeled "Cash Discount" on the onboarding link. It is the same 4% Flat Rate — the label is the reason this page exists.
Where to read more
- Set up and manage credit card surcharges (Square)
- Apply service charges (Square)
- How to set up modifiers and discounts for Square Register (Square video)
Questions resellers ask about this
What does the 4% on my Square link actually do — is it the merchant's rate or a fee on the customer?
The 4% is the merchant's card processing rate. A merchant boarded through your 4% Flat Rate link pays Square a flat 4% on card sales instead of Rack Rate's 2.6% + $0.15. Nothing is added to the customer's total.
So on a $1.00 card sale the customer pays $1.00 and about 96 cents reaches the merchant. If a merchant expected the customer to be charged $1.04, that is the misunderstanding — the link changes what the merchant pays, not what the customer pays.
Passing that cost on to customers is a separate thing the merchant sets up afterwards in their own Square Dashboard, and today it is manual: a Cash Discount button the cashier taps on cash sales, or Square's surcharge, which is automatic but capped at 3%.
Source: OrderOut (official)
With the 4% program, is the charge applied automatically at checkout or does the employee select it?
The employee selects it. A cash discount on Square is a manual discount button: the merchant creates a discount in their Square Dashboard, and when a customer pays cash the cashier taps Discount and picks it before taking payment. The discount is not applied by tender type, so nothing happens on its own at the register.
What the 4% link does set automatically is the merchant's card processing rate — a flat 4% on card sales. It is not a charge added to the customer's total.
Square's separate surcharge feature does add a fee to card payments on its own, but it is capped at 3%, and it recognizes debit cards and will not surcharge them.
Source: OrderOut (official)
How does a merchant on the 4% Flat Rate actually run a cash discount in Square?
Three manual steps in the merchant's own Square Dashboard, then a manual tap at every cash sale.
- Raise the prices first — every item price is adjusted upward to cover the 4%, so the listed price is the card price.
- Create the discount — go to Items, then Discounts, then Create a Discount; name it Cash Discount and set it as a percentage or a fixed amount.
- Apply it at checkout — when a customer pays cash, the cashier taps Discount, picks Cash Discount, then takes payment.
The discount is not applied by tender type, so it does not happen on its own — it is a button someone has to press on every cash sale. Square's own video on setting up modifiers and discounts walks through the screens; search for it by name in Square's help center.
Source: OrderOut (official)
Can I use Square's surcharge instead of a cash discount, and what is the maximum?
Yes, on the counter — but Square caps a surcharge at 3%. Square's built-in surcharge adds a fee to credit card payments automatically, recognizes debit cards and will not surcharge them, and cannot be set to 4%.
⚠️ It does not run everywhere. Square applies a surcharge on the Point of Sale, Restaurant and Retail apps and on web invoices, but not on Square Online, Virtual Terminal, Square Kiosk, Connected Terminal or mobile invoices. A merchant who takes payments online or by virtual terminal cannot rely on it.
So a merchant on the 4% Flat Rate pays 4% and can pass on at most 3%, absorbing the difference. Square's Partner Manager can separately offer that merchant a custom 3% card rate to pair with the surcharge — raise it through the OrderOut reseller team, ideally before the merchant boards.
Switching it on is not just a toggle. In the Square Dashboard under Account and Settings, then Payments, the merchant picks which locations it applies to and whether it is taxable, acknowledges a state and local law notice, and prints the signage kit Square generates — the sign goes at the entrance or the counter, and a merchant who makes their own must keep Square's wording and font size. Printed receipts then carry a surcharge notice on their own.
State rules on surcharging still apply. Square publishes which states it supports, and it states that compliance is the merchant's own responsibility; OrderOut does not advise on it.
Source: OrderOut (official)
What is the difference between a surcharge and a service charge on Square?
- Surcharge — a fee Square adds automatically to credit card payments only, capped at 3%. Debit cards are recognized and not surcharged. It runs on the Point of Sale, Restaurant and Retail apps and on web invoices, but not on Square Online, Virtual Terminal, Square Kiosk, Connected Terminal or mobile invoices.
- Service charge — a customizable fee the merchant adds to a transaction to cover business costs. It applies to any transaction regardless of how the customer pays, cash included, and the merchant sets it in their Square Dashboard.
- Cash discount — not an automatic Square feature: a manual discount button the merchant creates and the cashier taps on cash sales.
None of the three changes the merchant's own card processing rate, which is set by the link they signed up through.
Source: OrderOut (official)
Can a merchant get a custom card rate, and does it have to be before they sign up?
Yes, and there are two different paths — do not confuse them.
- Before the merchant signs up — Square's Partner Manager can set a custom card rate on the link itself, but only if your 4% link has not been used for that merchant yet. This is the path Square describes for setting a *higher* rate, which is how a merchant funds a cash discount or a surcharge.
- After the merchant signs up — a custom-pricing review, which needs the merchant to exist: Square asks for the merchant token, average ticket size, monthly card volume and the requested rate, then builds a quote, sends the merchant an agreement to sign, puts it through underwriting, and updates the rate on the account once approved.
Either way it is case by case and never self-serve, and Square decides. Bring the opportunity to the OrderOut reseller team rather than approaching Square directly.
Source: OrderOut (official)
What should I tell a merchant the 4% Flat Rate is, in plain language?
One line: you pay a flat 4% on card sales instead of 2.6% plus 15 cents, and your customers are charged what is on the ticket.
Then the sentence that removes the surprise: if they want card customers to cover that 4%, they raise their prices and offer a discount for cash — a discount their cashier taps by hand — or Square can add up to 3% to card payments automatically as a surcharge. Square does not apply a discount by tender type today, and it does not add 4% to anyone's bill.
A merchant who hears this before their first test sale is not surprised by the deposit.
Source: OrderOut (official)
Is Dual Pricing coming?
Not yet, and there is no date. Square does not auto-generate two-price tags and does not apply a cash discount by tender type. We understand a true dual-pricing capability is being worked on, and nothing has been announced — do not quote a merchant a date.
Today a merchant on the 4% Flat Rate gets there by hand: item prices raised to the card price, and a Cash Discount button the cashier taps on cash sales. Or Square's surcharge, which adds up to 3% to card payments on its own.
Source: OrderOut (official)
My merchant is already boarded at Rack Rate and wants the 4% Flat Rate — can we switch them?
A merchant who has already signed up cannot be moved onto the other program with a switch on our side. Square offers two paths, and both go through Square.
- A rate-change agreement — Square builds a quote and sends the merchant an agreement to sign electronically. This is how an existing merchant reaches the 4% Flat Rate, and Square requires it even when the only change is the rate.
- A brand new account — the merchant signs up from scratch through the intake link for the program you want, which boards them at that link's rate.
For the agreement path, Square's underwriting needs three figures about the merchant's processing before it will build the quote: average ticket, card volume and card-present percentage. The OrderOut reseller team will confirm the exact form Square wants for each when you bring the request in.
Either way Square decides and the merchant has to sign — you cannot switch a boarded merchant yourself. Bring the merchant and those three figures to the OrderOut reseller team rather than approaching Square directly.
Source: OrderOut (official)
In full
Your 4% link sets the merchant's card processing rate. In the OrderOut Reseller Portal, a link set to the 4% Flat Rate boards the merchant at a flat 4% on card sales. It does not add anything to the customer's bill, and it does not discount cash on its own.
You'll need an onboarding link set to the 4% Flat Rate, and the merchant's Square Dashboard open.
A merchant boarded through the 4% link pays Square a flat 4% on card sales, instead of Rack Rate's 2.6% plus 15 cents. On a one dollar card sale the customer pays one dollar, and about 96 cents reaches the merchant. That is the whole effect of the link. If a merchant expected the customer to be charged a dollar four, that is the misunderstanding to clear up before their first sale.
There is no automatic cash discount and no dual pricing on Square today. The discount is not applied by tender type, so nothing happens on its own at the register. We understand the capability is being worked on, and no date has been announced, so do not promise a merchant one.
To give cash customers a lower price, the merchant raises their item prices so the listed price is the card price, then creates a discount in their Square Dashboard under Items, then Discounts, then Create a Discount, named Cash Discount. At checkout the cashier taps Discount and picks it, by hand, on every cash sale.
The one option that runs on its own at the counter is Square's built-in surcharge, which adds a fee to credit card payments automatically and does not surcharge debit. Square caps it at 3%, so a merchant paying 4% passes on at most 3% and absorbs the difference. It does not run everywhere though: not on Square Online, Virtual Terminal, Square Kiosk, Connected Terminal or mobile invoices. A service charge is different again: a fee the merchant adds to any transaction, cash or card, to cover business costs.
A custom card rate is possible on two different paths. Before the merchant signs up, Square's Partner Manager can set a custom rate on the link, but only if your 4% link has not been used for them yet. After they sign up, it goes through a custom-pricing review that needs the merchant to already exist. Either way, bring it to the OrderOut reseller team rather than approaching Square yourself.
Answers on this page come from the OrderOut reseller answer ledger (2026-09-22.1). Still stuck? Email reseller@orderout.co.·All guides