# App\_fee\_money with Terminal API for Japan (JP) sellers in 2026 **URL:** \ **Category:** Questions\ **Tags:** terminal-api, payments-api\ **Created:** [October 2, 2026, 6:16am UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073 "2026-10-02T06:16:25Z")\ **Posts on this page:** 9\ **Page:** 1
**Author:** ![keisuke](https://avatars.discourse-cdn.com/v4/letter/k/cdc98d/32.png) [@keisuke](https://developer.squareup.com/forums/u/keisuke)\ **Post date:** [October 2, 2026, 6:16am UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/1 "2026-10-02T06:16:25Z")
Is app\_fee\_money supported with the Terminal API (CreateTerminalCheckout) for sellers located in Japan (JP)? A forum reply from 2024-07 stated that collecting app\_fee\_money with the Terminal API was not supported outside of the US at that time, and there was a 2023 case where an AU seller received INVALID\_LOCATION (“app\_fee\_money is not supported in the merchant’s location”). The “Collect Application Fees” documentation lists a JPY threshold (¥600), but does not state whether the Terminal API is included for JP. 1. Is it supported for JP in 2026? 2. If yes, does the developer account need any specific activation or approval to receive application fees from JP sellers? 3. If no, is there a supported way for a platform to collect a fee on in-person card payments in Japan? Thanks. ---
**Author:** ![zacstlouis](https://avatars.discourse-cdn.com/v4/letter/z/b5a626/32.png) [@zacstlouis](https://developer.squareup.com/forums/u/zacstlouis)\ **Post date:** [October 2, 2026, 3:16pm UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/3 "2026-10-02T15:16:16Z")
It should be allowed, but I would recommend testing a simple case in sandbox or production to verify before a larger build out. There’s no technical enablement step, but in Japan, Square may review how app fees are used. Fees should pay for your application’s service, not take a recurring cut of the seller’s sales. These are the requirements: - The fee has to be collected by a Square account based in Japan, and the fee currency must be JPY to match the seller. A US/USD developer account can’t collect fees from JP sellers, so you’d need a JP Square account and use its application ID for JP sellers ([International Development](https://developer.squareup.com/docs/international-development)). - Both your JP account and the seller’s account must be able to process card payments. - Sellers must authorize your app through OAuth with `PAYMENTS_WRITE_ADDITIONAL_RECIPIENTS`. If you add that scope later, sellers have to re-authorize. You can check this with `GET /oauth2/token/status` ([Collect Application Fees](https://developer.squareup.com/docs/payments-api/take-payments-and-collect-fees)). ---
**Author:** ![keisuke](https://avatars.discourse-cdn.com/v4/letter/k/cdc98d/32.png) [@keisuke](https://developer.squareup.com/forums/u/keisuke)\ **Post date:** [October 3, 2026, 8:41am UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/5 "2026-10-03T08:41:30Z")
Thank you, that’s very helpful. Could you clarify what would be considered acceptable use in Japan? Our model: we provide a full restaurant system (self-order kiosk, POS, kitchen display, attendance, cost management) to merchants with no monthly charge. Instead, we charge a system usage fee on each transaction that is processed through our system. Merchants can alternatively choose a flat monthly plan. The fee applies only to transactions processed through our application — not to the merchant’s sales in general. Would this be considered “paying for the application’s service”? Or would the per-transaction structure itself be a concern, regardless of the service provided? ---
**Author:** ![zacstlouis](https://avatars.discourse-cdn.com/v4/letter/z/b5a626/32.png) [@zacstlouis](https://developer.squareup.com/forums/u/zacstlouis)\ **Post date:** [October 6, 2026, 9:49pm UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/6 "2026-10-06T21:49:08Z")
That is only a soft limit you’d want to make sure you don’t get flagged by a seller. The only hard limits are [documented here](https://developer.squareup.com/docs/payments-api/take-payments-and-collect-fees#application-fee-limit) ---
**Author:** ![keisuke](https://avatars.discourse-cdn.com/v4/letter/k/cdc98d/32.png) [@keisuke](https://developer.squareup.com/forums/u/keisuke)\ **Post date:** [October 13, 2026, 10:54am UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/7 "2026-10-13T10:54:35Z")
Thanks again for the guidance. We tested in the sandbox with a JP seller test account: a Terminal API checkout of 1,000 JPY with app\_fee\_money of 20 JPY completed successfully, and the payment shows app\_fee\_money 20 JPY and processing\_fee 33 JPY. The seller’s sales summary also shows the 20 JPY deducted as “Default Test Account”. Follow-up questions: 1. In the sandbox, are payouts (Payouts API) generated for the developer’s default test account? We see 0 payouts so far. If not, is there any way to verify in the sandbox that the app fee actually reaches the developer account? 2. In production, will app fees collected from JP sellers appear in the JP developer account’s payout entries with type APP\_FEE\_REVENUE? 3. If the seller account and the developer account are the same Square account, what happens when app\_fee\_money is specified? Is it rejected, or ignored? ---
**Author:** ![zacstlouis](https://avatars.discourse-cdn.com/v4/letter/z/b5a626/32.png) [@zacstlouis](https://developer.squareup.com/forums/u/zacstlouis)\ **Post date:** [October 13, 2026, 4:00pm UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/8 "2026-10-13T16:00:20Z")
1. Sandbox payments should generate payouts. You can check with `ListPayouts` by passing a `location_id`. Another way is to check seller-side with `GetPayment` and confirm `app_fee_money` is on the payment. If you are taking payments as the default test account through your own app, the app fee will be rejected (see 3), so they need a separate seller test account that authorizes the app through OAuth. 2. Payout entries do include app fee revenue: `ListPayouts` → `ListPayoutEntries` itemizes app-fee revenue against each `payment_id` . The entry type is `APP_FEE_REVENUE` ([ActivityType](https://developer.squareup.com/reference/square/enums/ActivityType)). 3. Same account: The request is rejected, not ignored. A fee of 0 skips this check on Terminal checkouts. ---
**Author:** ![keisuke](https://avatars.discourse-cdn.com/v4/letter/k/cdc98d/32.png) [@keisuke](https://developer.squareup.com/forums/u/keisuke)\ **Post date:** [October 14, 2026, 1:34am UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/9 "2026-10-14T01:34:30Z")
Thanks for the detailed answers. We are passing location\_id (the default test account’s only location) to ListPayouts, but it still returns 0 payouts about a day after the payment. The seller-side GetPayment shows app\_fee\_money 20 JPY on the payment. 1. How long does it take for a sandbox payout to be created? 2. Does the default test account need a linked bank account or a payout schedule for payouts to be generated in the sandbox? ---
**Author:** ![keisuke](https://avatars.discourse-cdn.com/v4/letter/k/cdc98d/32.png) [@keisuke](https://developer.squareup.com/forums/u/keisuke)\ **Post date:** [October 14, 2026, 1:36am UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/10 "2026-10-14T01:36:30Z")
Thanks. We found that another Square employee answered in September 2026 that app fees are not fully supported in the sandbox and the end-to-end flow can’t be seen without moving to production ([Sandbox OAuth + app\_fee\_money: where should the application fee appear?](https://developer.squareup.com/forums/t/sandbox-oauth-app-fee-money-where-should-the-application-fee-appear/27900)). The sandbox overview also states that Balance and application fee reporting are not supported. Could you confirm that APP\_FEE\_REVENUE payout entries are not generated in the sandbox, and that the only way to verify the full flow is a small test in production (checking ListPayoutEntries a few hours to a day after the payment)? ---
**Author:** ![zacstlouis](https://avatars.discourse-cdn.com/v4/letter/z/b5a626/32.png) [@zacstlouis](https://developer.squareup.com/forums/u/zacstlouis)\ **Post date:** [October 15, 2026, 4:16pm UTC](https://developer.squareup.com/forums/t/app-fee-money-with-terminal-api-for-japan-jp-sellers-in-2026/28073/11 "2026-10-15T16:16:11Z")
I can’t confirm if it isn’t supported in the sandbox. If your testing showed unexpected results I would move your testing to production. We generally recommend sandbox for getting up and running and a new “test” production account for final end to end testing as not everything in sandbox mirrors production 1:1