> ## Documentation Index
> Fetch the complete documentation index at: https://help.tiretutor.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Service Charges

> How to enable and configure service charges to offset operational costs

# Service Charges

Service charges help you offset operational costs like credit card processing fees, shop supplies, and environmental fees. This guide shows you how to enable and configure service charges in your TireTutor POS system.

## What Are Service Charges?

Service charges are fees you add to customer transactions to help cover your business operating costs. Common examples include:

* **Processing fees** - Credit card processing costs
* **Shop fees** - Supplies and materials used during service
* **Convenience fees** - Administrative or handling costs

<Note>
  **Service charges are different from surcharges.** Square does not support credit card surcharging at this time. Service charges apply to all payment methods and must be disclosed to customers.
</Note>

### When to Use Service Charges

Consider using service charges when you want to:

* Offset credit card processing fees (typically 2-3% of transaction value)
* Recover costs for shop supplies used during repairs
* Pass through environmental or disposal fees to customers
* Transparently show additional costs instead of building them into labor rates

## Enabling Service Charges

<Steps>
  <Step title="Open Settings">
    Go to **Settings** from your main menu
  </Step>

  <Step title="Navigate to Shop Fees">
    Click **Shop Fees** in the settings menu
  </Step>

  <Step title="Find Service Charge Section">
    Scroll to the **Service Charge** section at the bottom of the page
  </Step>

  <Step title="Toggle On">
    Turn on the **Enable Service Charge** toggle
  </Step>

  <Step title="Set Percentage">
    Enter your service charge percentage (between 0.01% and 10%)

    * Example: Enter 3 for a 3% service charge
  </Step>

  <Step title="Save Changes">
    Click **Save** to activate your service charge
  </Step>
</Steps>

<Tip>
  **Start with a common percentage.** Most dealers use 2-3% to offset credit card processing fees. You can always adjust this later.
</Tip>

## Customizing the Label

By default, service charges display as "Service Charge" on estimates and receipts. You can customize this label to match how you communicate with customers.

### How to Change the Label

1. In the Service Charge section, find the **Label** field
2. Enter your preferred label name
3. Click **Save**

### Recommended Labels

* Processing Fee
* Shop Fee
* Convenience Fee
* Operational Fee
* Shop Supplies Fee

<Warning>
  **Labels containing "surcharge" are blocked.** This includes variations like "sur charge", "sur-charge", or "credit card surcharge". Using compliant terminology protects you from regulatory issues.
</Warning>

### Why Some Labels Are Restricted

Square does not support credit card surcharging. Service charges and surcharges are legally different:

* **Service charges** apply to all payment methods (cash, check, cards)
* **Surcharges** apply only to credit card payments

Using "surcharge" terminology could violate payment processor rules and local regulations.

## How Service Charges Display

Service charges appear separately on all customer-facing documents to ensure transparency.

### On Work Orders

When you convert an estimate to a work order, the service charge transfers automatically with the same percentage and label.

### On Receipts

Customer receipts show the service charge as a separate itemized charge so customers understand exactly what they are paying.

### In Reports

Service charges appear separately in your financial reports, making it easy to track how much you are recovering in operational costs.

## Tax Treatment

Service charges can be taxed based on your local regulations and tax settings.

### How Service Charges Are Taxed

By default, service charges follow the same tax rules as shop fees in your store settings. This means:

* If shop fees are taxable in your state, service charges will be taxed
* If shop fees are non-taxable, service charges will not be taxed

### State Considerations

Tax treatment of service charges varies by state. Some states tax service charges while others do not. Check with your accountant or local tax authority to ensure compliance.

<Note>
  **TireTutor calculates taxes based on your settings.** Make sure your tax configuration is correct before enabling service charges.
</Note>

## Compliance and Best Practices

### Important Compliance Rules

1. **Disclose to customers** - Always make sure customers are aware of service charges before completing a transaction
2. **Apply consistently** - Service charges apply to all transactions, not just credit card payments
3. **Check local laws** - Service charge regulations vary by state and locality
4. **Be transparent** - Customers should clearly see the service charge on estimates and receipts.

### What Square Allows

Square supports service charges as long as they:

* Apply to all payment methods (not just credit cards)
* Are clearly disclosed to customers
* Do not use "surcharge" terminology
* Comply with local regulations

Square does not currently support true credit card surcharging, though they are working on this feature.

## Customer Communication

### How to Tell Customers About Service Charges

When enabling service charges for the first time, communicate proactively with your customers:

#### In-Store Signage Example

```
Notice: Operational Fee

To help offset rising operational costs, we have implemented a 3%
processing fee on all transactions effective [date]. This small fee
helps us continue providing you with quality service and competitive
pricing. Thank you for your understanding.
```

#### Email Template Example

```
Subject: Update to Our Pricing Structure

Dear Valued Customer,

We are writing to let you know about a small change to our pricing.
Starting [date], we will add a 3% processing fee to all transactions
to help offset operational costs like credit card processing and shop
supplies.

This fee allows us to keep our service rates competitive while
maintaining the high-quality work you expect. As always, we provide
detailed estimates before beginning any work, and all fees will be
clearly shown.

If you have any questions, please contact us at [phone] or [email].

Thank you for your continued business.
```

### Handling Customer Questions

<AccordionGroup>
  <Accordion title="Why do you charge this fee?">
    "We use this fee to offset operational costs like credit card processing fees and shop supplies. It helps us keep our service rates competitive."
  </Accordion>

  <Accordion title="Can I avoid this fee by paying cash?">
    "The fee applies to all payment methods because it covers various operational costs, not just credit card processing."
  </Accordion>

  <Accordion title="Other shops don't charge this fee">
    "Different shops handle costs differently. Some build these costs into their labor rates. We believe in being transparent about all charges."
  </Accordion>

  <Accordion title="Is this fee taxable?">
    "Yes, the fee is subject to the same taxes as other charges based on state regulations."
  </Accordion>
</AccordionGroup>

## Frequently Asked Questions

<AccordionGroup>
  <Accordion title="Can I apply service charges to only some transactions?">
    No, service charges apply to all transactions once enabled. This ensures consistency and compliance. If you need flexibility, consider using shop fees instead.
  </Accordion>

  <Accordion title="What percentage should I use?">
    Most dealers use 2-3% to offset credit card processing fees. Consider your actual costs and competitive market rates in your area.
  </Accordion>

  <Accordion title="Do service charges show separately in reports?">
    Yes, service charges are tracked separately from line items and shop fees in your financial reports.
  </Accordion>

  <Accordion title="Can I have both shop fees and service charges?">
    Yes, you can use both. Shop fees are for specific categories (like tire fees), while service charges apply to the entire order. They display separately.
  </Accordion>

  <Accordion title="How do refunds work with service charges?">
    When you refund an order, the service charge is included in the refund amount. Full refunds include the full service charge. Partial refunds are calculated proportionally.
  </Accordion>

  <Accordion title="What if a customer complains about the fee?">
    Stay professional and explain that the fee helps you maintain competitive pricing and quality service. If needed, involve a manager to discuss options.
  </Accordion>

  <Accordion title="Can I change the percentage after enabling it?">
    Yes, you can adjust the percentage anytime in settings. Changes apply to new estimates and work orders, but do not affect existing ones.
  </Accordion>

  <Accordion title="Will this fee show up in Square?">
    Yes, when orders sync to Square, the service charge is included and visible in your Square dashboard.
  </Accordion>
</AccordionGroup>

## Troubleshooting

<AccordionGroup>
  <Accordion title="Service charge not appearing on estimates">
    **Check these things:**

    1. Verify the toggle is turned on in Settings > Shop Fees
    2. Confirm you saved your changes
    3. Refresh the page and create a new estimate
    4. Check that your percentage is greater than 0
  </Accordion>

  <Accordion title="Getting an error when saving my label">
    **Possible causes:**

    1. Your label contains "surcharge" or a variation (blocked for compliance)
    2. Your label is too long (try a shorter name)
    3. Your label contains special characters (use letters and spaces only)
  </Accordion>

  <Accordion title="Percentage not calculating correctly">
    **Verify:**

    1. The percentage you entered (3 means 3%, not 0.03%)
    2. That taxes are not being included in the calculation (service charges calculate on pre-tax amounts)
    3. That rounding is working correctly for small amounts
  </Accordion>

  <Accordion title="Service charge not syncing to Square">
    **Steps to check:**

    1. Verify your Square integration is working (test with a regular order)
    2. Check the Square dashboard to see if the charge appears under a different name
    3. Contact support if orders are syncing but service charges are missing
  </Accordion>
</AccordionGroup>

### Still Need Help?

If you are having trouble with service charges, contact our support team:

* Email: [support@tiretutor.com](mailto:support@tiretutor.com)
* Phone: 1-800-XXX-XXXX
* Live chat: Available in your dashboard

## Next Steps

<Columns cols={2}>
  <Card title="Digital Vehicle Inspection" icon="clipboard-check" href="/dealers/dvi/overview">
    Send inspection reports and let customers approve work from their phone.
  </Card>

  <Card title="SMS Remarketing" icon="envelope" href="/dealers/sms-remarketing/overview">
    Bring customers back with automatic service reminders.
  </Card>
</Columns>