# New gift card fees clarification

**URL:** <https://developer.squareup.com/forums/t/new-gift-card-fees-clarification/12164>\
**Category:** Questions\
**Tags:** gift-cards-api\
**Created:** [February 8, 2024, 7:31pm UTC](https://developer.squareup.com/forums/t/new-gift-card-fees-clarification/12164 "2024-02-08T19:31:39Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![tdgjrb](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/tdgjrb/32/1893_2.png) [@tdgjrb](https://developer.squareup.com/forums/u/tdgjrb)\
**Post date:** [February 8, 2024, 7:31pm UTC](https://developer.squareup.com/forums/t/new-gift-card-fees-clarification/12164/1 "2024-02-08T19:31:39Z")

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I recently received the email with subject “_ **Upcoming pricing changes to Square Gift Cards** _” that said in part:

> For developers and partners that have integrated with our Gift Cards API, this means that the load fee will be charged to a seller for any API call that adjusts or otherwise updates a Square gift card’s balance, including instances where a 3P developer uses an external payments provider to process payments but uses Square Gift Cards to manage reporting or accounting.

In the interest of transparency, I would like to understand if ALL balance affecting transactions will result in fees, or only some of them.

Is Square able to indicate which of the following `gift_card_activity GiftCardActivityType` transactions are subject to the 2.5% fee?

- ACTIVATE
- LOAD
- REDEEM
- CLEAR\_BALANCE
- DEACTIVATE
- ADJUST\_INCREMENT
- ADJUST\_DECREMENT
- REFUND
- UNLINKED\_ACTIVITY\_REFUND

(I omitted the `GiftCardActivityType` values that are not available to the API).

If fee determination is based on more than just the `GiftCardActivityType` then please explain.

Thanks

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**Author:** ![Bryan-Square](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/bryan-square/32/38_2.png) [@Bryan-Square](https://developer.squareup.com/forums/u/Bryan-Square)\
**Post date:** [February 8, 2024, 7:40pm UTC](https://developer.squareup.com/forums/t/new-gift-card-fees-clarification/12164/2 "2024-02-08T19:40:32Z")

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If the balance is adjusted then they’re subject to the fee is the best way to look at it. 🙂

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**Author:** ![tdgjrb](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/tdgjrb/32/1893_2.png) [@tdgjrb](https://developer.squareup.com/forums/u/tdgjrb)\
**Post date:** [February 8, 2024, 7:47pm UTC](https://developer.squareup.com/forums/t/new-gift-card-fees-clarification/12164/3 "2024-02-08T19:47:47Z")

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Thanks @Bryan-Square

I have a couple of follow up questions.

The [FAQ post](https://squareup.com/help/us/en/article/8185-square-gift-cards-2024-pricing-change-faq) says:  
 ![image](https://global.discourse-cdn.com/square/original/2X/a/afc2f438ae22810ac99b393dac36359f7fcd82a4.png)

Are you saying that API refunds are treated differently than Register/Dashboard/etc refunds?

And, the FAQ also says that only balance increasing transactions will be subject to this fee, so I would expect that `REDEEM` and `ADJUST_DECREMENT`, etc. transactions would NOT be subject to the fee.

Can you clarify this?

Thanks

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**Author:** ![dan](https://avatars.discourse-cdn.com/v4/letter/d/eada6e/32.png) [@dan](https://developer.squareup.com/forums/u/dan)\
**Post date:** [March 5, 2024, 8:58pm UTC](https://developer.squareup.com/forums/t/new-gift-card-fees-clarification/12164/4 "2024-03-05T20:58:38Z")

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Square should add information about the 2.5% gift card fee to the developer docs. We built a feature that plugs into gift cards in late 2023 which turned out to be terrible timing because the 2.5% fee more or less kills the feature. That was unlucky for us. Now the fee exists and developers should be made aware that there is a signifcant new expense associated with gift card loading activities.

I dont see any mention of the fee on these pages:

> **[Reload Square Gift Cards](https://developer.squareup.com/docs/gift-cards/reload-gift-cards)**
>
> Learn how to reload Square gift cards with additional funds using the Gift Card Activities API.

> **[Sell Square Gift Cards](https://developer.squareup.com/docs/gift-cards/sell-gift-cards)**
>
> Learn how to create a Square gift card and activate it with an initial balance using the Gift Cards API and Gift Card Activities API.

> **[Manage Gift Cards on File](https://developer.squareup.com/docs/gift-cards/manage-gift-cards-on-file)**
>
> Learn how to manage gift cards on file by linking or unlinking customers with Square gift cards using the Gift Cards API.

> **[Sell a Gift Card](https://developer.squareup.com/docs/gift-cards/walkthrough-1)**
>
> Use the Square Gift Cards API to create and activate a gift card.

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**Author:** ![Bryan-Square](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/bryan-square/32/38_2.png) [@Bryan-Square](https://developer.squareup.com/forums/u/Bryan-Square)\
**Post date:** [March 5, 2024, 10:00pm UTC](https://developer.squareup.com/forums/t/new-gift-card-fees-clarification/12164/5 "2024-03-05T22:00:41Z")

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We’re constantly working to improve our features based on feedback like this, so I’ll be sure to share your request to the API product team. 🙂
