In Canada, fees like the Sociavore guest fee, DoorDash Drive fees, and DoorDash driver tip are automatically collected through Square with each transaction. These deductions from your daily deposit might make the overall fee percentage seem higher compared to the standard credit card transaction rate from Square.
To illustrate this:
Say you sell $100 worth of food.
Sociavore has a 3% guest fee on the customer, raising the final transaction amount to $103.00 through Square.
At the end of the day, Square's fee calculation, based on all deductions from your deposit, would look like this:
Description | Amount |
Food Sales | $100.00 |
Credit Card Transaction Cost (2.9% + $0.30) | $3.20 |
Sociavore Guest Fee (3%) | $3.00 |
Total Transaction Amount | $103.00 |
Total Fees (Credit Card + Guest Fee) | $6.20 |
Fee Percentage Shown by Square | 6.02% |
For U.S. customers, it's important to note that fees such as guest fees, DoorDash Drive fees, and DoorDash driver tips are collected weekly, every Monday around 8 AM EST.
The guest fee collected by Sociavore is vital not only for covering additional costs associated with each transaction (like security, SMS, maintenance, and data retention) but also plays a significant role in maintaining a high-quality online ordering experience. This fee helps keep the operational costs for restaurants manageable, encouraging restaurants to continue offering online ordering services without the burden of high commissions charged by some third-party platforms. By doing so, Sociavore aids restaurants in retaining repeat online customers, fostering a more direct and profitable relationship between restaurants and their patrons. This strategy is essential for restaurants to sustain and grow their online presence effectively while providing a seamless, secure experience for guests.