Service charge added through UpdateOrder is not shown on Square Terminal

We are experiencing an issue with the Orders API UpdateOrder endpoint.

Our flow is:

  1. Create an order through the Orders API.

  2. Add a service charge using UpdateOrder.

  3. Process the order on a Square Terminal.

The service charge is correctly applied and included in the order total. It is also visible in the Square POS app. However, on the Square Terminal, the total is correct but the service charge is not displayed as an individual line item.

Is this a known limitation when service charges are added through UpdateOrder, or is there a required configuration to make the service charge visible on the Terminal?

Orders API documentation: