Understanding the Service Fee on Customer Orders

If you or your customers have noticed a line item labeled "service fee" on a pay-by-link order and weren't expecting that exact wording, this article explains what it is.

What the "Service Fee" Actually Is

The "service fee" shown on a receipt is the standard credit card processing surcharge — currently 2.9% + $0.30 per transaction — applied only to pay-by-link orders (orders paid online via a payment link, not orders paid in person).

It's the same underlying charge whether it's called a "credit card surcharge" or a "service fee" — the wording shown on receipts is "service fee" for legal and compliance reasons, and isn't something that can be relabeled on a per-merchant basis.

When It Applies

• Applies to pay-by-link orders, where the customer pays online before the order is sent to your kitchen.

• Does not apply to orders your customer pays for in person at pickup or delivery.

What to Tell Customers

If a customer asks about the "service fee" on their receipt, you can let them know it's the standard card processing fee for paying online — the same type of small percentage-based fee most businesses pass along for card payments, just labeled "service fee" rather than "credit card surcharge."