What Are Square Processing Fees?

What Are Square Processing Fees?

Square is best-known for their credit card processing service, but they also offer a host of software and hardware solutions for business. From basic POS systems to appointments software, the costs associated with working with Square vary based on your business needs.

Your transaction fees, hardware and software costs depend on the total sales volume for which they apply; custom pricing is also an option.

1. Transaction fee

Transaction fees are standard costs associated with using credit or debit cards for payment, covering costs incurred by processors when processing card transactions.

They’re automatically deducted from sales totals and transferred directly into businesses’ bank accounts; many choose to factor the processing fees into product prices before sales can take place; others incorporate them as general service charges added onto all orders.

Square’s transaction rates are very competitive, considering they don’t include monthly fees or hidden charges. Their swipe, dip and tap transactions cost 2.6% + 10C per swipe/dip/tap processed through their POS or card reader while manually keyed transactions cost 3.5%+15 cents each for payment made using virtual cards on file or manually keyed.

Hardware costs are one-time expenses while software and PCI compliance compliance costs are included as well.

Alternatively, businesses looking for quick ways to transfer funds faster than the standard one or two business days may opt for same-day transfers for an additional 1.75% fee on each transfer; this may come with additional risks of non-compliance or returned funds fees; for consumer debit card transactions the break even point for Square is around $10 and rises with signature rewards or commercial cards.

2. Monthly fee

Square’s processing fees may not be the lowest on the market, but their unique features can help your business flourish. These features include free activation, a powerful Point of Sale (POS) app with credit card reader capability, advanced reporting tools and next business day deposits – not to mention next day deposits! Plus Square offers friendly support staff as well as a comprehensive knowledge base full of step-by-step instructions and how-to articles.

For transactions where customers present their card and swipe, tap, or dip it using a Square device, the fee structure is 3.5% plus 15 cents. This also applies for keyed in transactions using either manual entry into the device itself or using its POS app; online payments made through websites/APIs; invoice payments; etc.

Square deducts fees from each transaction before funds are transferred to your linked bank account, including refund fees when issuing returns and non-compliance fees for failing to meet Payment Card Industry Data Security Standards – rules businesses must abide by in order to protect customers’ personal information. Square isn’t alone when it comes to charging these types of fees – other merchant service providers also levy them.

3. Additional fees

Modern customers appreciate the ease and convenience of point-of-sale (POS) systems that enable them to swipe or dip credit and debit cards, in addition to offering customer loyalty programs, payroll software and appointment scheduling software.

Square offers small businesses an ideal third-party payment processor without an application process to use as they introduce themselves to POS technology. But they should keep certain details in mind.

Square charges a monthly subscription fee for its software products, which include an e-commerce website builder and appointment scheduling software among others. While these solutions may work independently of Square’s POS system, most are best utilized in tandem.

Square charges varying fees for its transactions, depending on their nature. In-person transactions cost 2.6% plus $0.10 for tap, swipe or dip while manual card entry incurs higher rates.

Square charges a 2.5% fee plus $0.50 per transaction when payments are processed using their APIs or integrations, with fees differing by country and being more difficult to locate on its website than through exploring technical documentation for developers.

4. Taxes

Square fees fall into three main categories: per-use payment processing costs, monthly subscription cost for software and the price of any hardware purchased. Your costs for using Square will depend upon what hardware and software are needed as well as how you accept payments; so it’s crucial that you understand these costs before making any financial commitments.

Businesses in the US currently pay a 2.6% fee on transactions wherein a customer’s card is swiped, tapped or dipped using a Square Reader; this rate increases significantly for online and card-not-present (CNP) payments like subscription payments made using their clients’ cards on file.

To reduce costs associated with these fees, encourage customers to pay in cash or check. You may also pass these expenses along by charging a surcharge on credit cards but before doing so it is wise to research local laws and regulations first.

Speak to our representative today about lowering Square fees! Using a free point-of-sale (POS) app to manage your business can reduce fees significantly while connecting it to accounting software can record all income and expenses in one convenient place, creating an accurate profit and loss report (P&L). Automating import of Square sales data into accounting software saves both time and ensures accurate records are kept.


In conclusion, Square processing fees play a pivotal role in the realm of digital payments, offering businesses a streamlined and accessible solution for processing transactions.

The transparency of Square’s fee structure, which typically includes a flat rate for each transaction, helps businesses budget more effectively without hidden costs. Square’s commitment to simplicity and ease of use has made it a popular choice for merchants of all sizes.

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