Hey there, small business owners! If you’re looking for a reliable payment processor, you’ve probably heard of Square. It’s one of the most popular tools out there, known for its ease of use and sleek hardware.
But let’s get to the big question: how much does Square charge per transaction? Understanding these fees is key to managing your business costs.
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Why Square Is a Go-To for Small Businesses
Before we talk numbers, let’s quickly cover why Square is so popular. Whether you run a coffee shop, sell handmade crafts, or offer freelance services, Square makes accepting payments super easy.
From in-person card swipes to online sales, it’s got you covered. Plus, there are no long-term contracts, and the setup is a breeze.
But like any payment processor, Square charges fees for each transaction. Knowing these costs upfront helps you plan your pricing and avoid surprises.
Square’s Transaction Fees: The Basics
Square keeps things simple with a flat-rate pricing model. This means you pay a fixed percentage plus a small per-transaction fee, depending on how the payment is made.
The fees vary based on whether the transaction is in-person, online, or manually entered. Here’s a quick look at the main types of transactions Square handles:
- Card-present transactions: When a customer uses a card in person (swipe, tap, or chip).
- Card-not-present transactions: When you manually key in card details (like over the phone).
- Online transactions: Payments made through your Square Online store or payment links.
- Invoices: Payments processed via Square’s invoicing feature.
Each type has its own fee structure, so let’s break them down one by one.
Card-Present Transaction Fees
When a customer hands you their card and you swipe, tap, or insert it into a Square reader, it’s called a card-present transaction. These are the least risky for fraud, so they come with the lowest fees.
Square charges:
| Transaction Type | Fee |
|---|---|
| Card-present (swipe, tap, or chip) | 2.6% + $0.10 per transaction |
For example, if a customer buys a $50 item, you’d pay $1.40 ($50 x 2.6% = $1.30 + $0.10). The money left after the fee is what hits your bank account.
This rate applies to all major credit cards, debit cards, and contactless payments like Apple Pay or Google Wallet. It’s straightforward and predictable, which is great for budgeting.
Card-Not-Present Transaction Fees
Sometimes, you can’t swipe a card. Maybe you’re taking a payment over the phone or entering card details manually. These are called card-not-present transactions, and they carry a higher risk of fraud.
Because of this, Square charges a bit more:
| Transaction Type | Fee |
|---|---|
| Card-not-present (keyed-in) | 3.5% + $0.15 per transaction |
Let’s say you process a $100 payment by typing in the card details. You’d pay $3.65 ($100 x 3.5% = $3.50 + $0.15). The higher fee reflects the extra risk, but it’s still competitive compared to other processors.
To save money, try to avoid keyed-in transactions when possible by using a card reader or online payment methods.
Online Transaction Fees
If you sell through a Square Online store or use payment links, you’re dealing with online transactions. These fees are slightly different because Square handles the payment gateway and security for your website.
The fee structure is:
| Transaction Type | Fee |
|---|---|
| Online transactions | 2.9% + $0.30 per transaction |
For a $75 online sale, you’d pay $2.48 ($75 x 2.9% = $2.18 + $0.30). This applies to payments made through your Square Online store, APIs, or payment links.
If you’re running an e-commerce business, this rate is worth factoring into your pricing to maintain healthy profit margins.
Invoice Transaction Fees
Square’s invoicing feature is a lifesaver for service-based businesses like freelancers or contractors. You send an invoice, your client pays, and Square processes it.
The fees depend on how the invoice is paid:
| Transaction Type | Fee |
|---|---|
| Invoices (card payments) | 3.3% + $0.30 per transaction |
| Invoices (ACH bank transfer) | 1% (minimum $1 per transaction) |
For a $200 invoice paid by card, you’d pay $6.90 ($200 x 3.3% = $6.60 + $0.30). If the same invoice is paid via ACH bank transfer, the fee drops to $2 ($200 x 1%).
ACH payments are a great way to save on fees, especially for larger transactions, but they take longer to process (usually 1-2 business days).
Other Fees to Know About
Square’s transaction fees are the main cost, but there are a few other charges to keep in mind. Don’t worry, Square is upfront about these, so you won’t get hit with hidden costs.
Here’s what else you might encounter:
- Instant transfer fees: Square usually deposits funds the next business day, but if you want money instantly, you’ll pay 1.75% per transfer.
- Refund fees: Good news here—Square doesn’t charge extra for refunds. However, the original transaction fee isn’t returned.
- Hardware costs: The basic Square Reader for magstripe is free, but advanced hardware (like the Square Terminal) ranges from $59 to $799, depending on the device.
- Software subscriptions: Square’s basic POS app is free, but premium plans like Square for Retail Plus cost $60 per month per location. These come with extra features like advanced reporting.
These extras are optional, so you only pay for what you need. For most small businesses, the free POS app and basic reader are enough to get started.
How Square’s Fees Compare to Competitors
You might be wondering how Square stacks up against other payment processors like PayPal or Stripe.
Here’s a quick comparison:
| Processor | In-Person Fee | Online Fee | Keyed-In Fee |
|---|---|---|---|
| Square | 2.6% + $0.10 | 2.9% + $0.30 | 3.5% + $0.15 |
| PayPal Zettle | 2.29% + $0.09 | 2.89% + $0.49 | 3.49% + $0.49 |
| Stripe | 2.7% + $0.05 | 2.9% + $0.30 | 3.4% + $0.30 |
Square’s in-person fees are slightly higher than PayPal Zettle’s but lower than Stripe’s.
For online and keyed-in transactions, Square is competitive, though its invoice fees are a bit steeper.
The lack of monthly fees or contracts makes Square a solid choice for businesses just starting out.
Tips to Reduce Square Fees
Nobody likes paying fees, so here are some practical ways to keep your Square costs down:
- Encourage in-person payments: Card-present transactions have the lowest fees, so use a Square reader whenever possible.
- Offer ACH for invoices: If you send invoices, ask clients to pay via bank transfer to save on fees.
- Avoid manual entry: Keyed-in transactions cost more, so use card readers or online payment links instead.
- Price strategically: Factor transaction fees into your pricing to cover costs without losing customers.
- Check local laws: In some areas, you can add a surcharge to credit card payments to offset fees. Just make sure it’s legal in your region.
By being smart about how you process payments, you can minimize fees and keep more money in your pocket.
Is Square Worth the Cost?
Square’s fees are straightforward, and the platform’s ease of use makes it a favorite for small businesses. The flat-rate pricing means no surprises, and you don’t need to worry about monthly subscriptions unless you opt for premium features.
For new businesses or those with low transaction volumes, Square is hard to beat. However, if you process large volumes (say, over $250,000 annually), you might want to explore processors with lower rates for high-volume businesses.
FAQs About How Much Does Square Charge Per Transaction
Q. Does Square charge monthly fees?
No, Square’s basic POS app and payment processing have no monthly fees. You only pay per transaction unless you opt for premium plans like Square for Retail Plus.
Q. Are Square’s fees the same for all credit cards?
Yes, Square charges the same rate for all major credit and debit cards, including Visa, Mastercard, and American Express.
Q. Can I pass Square fees to customers?
In some regions, you can add a surcharge to credit card payments to cover fees. Check local regulations to ensure compliance.
Conclusion
Square is a fantastic tool for small businesses, offering a simple way to accept payments without the hassle of contracts or hidden costs.
Its transaction fees—2.6% + $0.10 for in-person, 2.9% + $0.30 for online, 3.5% + $0.15 for keyed-in, and 3.3% + $0.30 for card invoices—are competitive and easy to understand.
By encouraging in-person payments or ACH transfers, you can keep costs down.
Whether you’re running a food truck, an online store, or a service-based business, Square’s flexibility makes it worth considering.
Disclaimer: The information in this blog is accurate as of June 2025, based on available data from Square’s official website and other reliable sources. Fees and policies may change, so always check Square’s website for the latest details before making decisions.
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