Hey @cmonster42, I think I have a solution for you! 

You could create a cash back item in your item library. You can set the amount to be variable or with set values. You can then make sure no sales tax is applied to this item. That way it's marked as a non-taxable good! 😀

You can then create a paid out on your cash drawer report to track the money coming out of the till. 

So based on your responses, a discussion with my coworkers, and some hard thinking (you should see the smoke coming out my ears), here is what I think we're going to do.

Since we are a concession trailer and most times need to move fairly quickly, I am going to enter preset "cash back" items as @Chad suggested. And because we aren't your average fair food, we are not raking it in, so I am setting a minimum at $5 and maximum cash back amount at $25 and only with purchase. And charging a transaction fee to cover Square's 2.83% and leave a little extra for our trouble.

So my items will be:

$5.50 to receive $5 cash back

$10.50 to receive $10

$15.75 for $15

$20.75 for $20

$26 for $25

Once I complete the transaction, I'll enter a paid out in the report, also as @Chad suggested.

And I'm not advertising that we do this. I just want to have some sort of procedure/policy in place for when we are asked.

Thanks for checking on this! I never thought it might not be allowed. That just goes to show me to always double check. 😄

It just makes it easier for me anyway. I'll have to make note of the closest ATM at future events.

Thanks all for the answers and suggestions!

Here is a primer on surcharging.  https://usa.visa.com/support/small-business/regulations-fees.html

Hey there @bfcstore - thanks for chiming in. 

Yes, surcharges are allowed in some states when certain steps are followed - thanks for sharing the link. I want to point out and reinforce @Chad's best answer detailing that cash advancing is still a violation of our Terms of Service - surcharge or no surcharge. 

👍