If you’re a small business owner, you’ve probably heard of Square. It’s a popular payment processing platform that makes it easy to accept credit card payments, whether you’re selling at a farmers’ market or running an online store.
But one question pops up all the time: How much does Square charge per transaction? Don’t worry, I’ve got you covered with a friendly, easy-to-read breakdown of Square’s fees, plans, and tips to keep your costs low. Let’s dive in!
Why Square’s Fees Matter to Your Business
When you’re running a business, every penny counts. Payment processing fees can eat into your profits, so understanding what Square charges is key to budgeting and pricing your products or services.
Square’s pricing is straightforward, with no hidden fees or long-term contracts, which is great for small businesses. But the cost per transaction depends on how you accept payments, and that’s where things get interesting.
Square’s Transaction Fees: The Basics
Square uses a flat-rate pricing model, which means you pay a fixed percentage plus a small fee for each transaction. The exact cost depends on the type of payment you’re processing.
Here’s a quick overview of the main transaction types and their fees:
- In-Person Payments: 2.6% + $0.10 per transaction
- Online Payments: 2.9% + $0.30 per transaction
- Keyed-In or Card-on-File Payments: 3.5% + $0.15 per transaction
- Invoices (Card Payments): 3.3% + $0.30 per transaction
- Invoices (ACH Bank Transfers): 1% with a minimum of $1 per transaction
These fees are automatically deducted from each transaction, so the amount you receive in your bank account is the total sale minus Square’s cut.
Let’s break down each payment type in more detail.
In-Person Payments: Low Fees for Card Swipes
If you’re using a Square Reader or Square Terminal to accept payments in person, you’re in luck. These transactions have the lowest fees at 2.6% + $0.10 per swipe, tap, or chip insertion.
This applies whether your customer uses a Visa, Mastercard, American Express, or contactless payment like Apple Pay.
For example, if you sell a $50 item at your coffee shop, Square’s fee would be:
- 2.6% of $50 = $1.30
- Plus $0.10
- Total fee: $1.40
You’d receive $48.60 in your bank account. This fee structure is great for businesses with smaller transactions, like cafes or retail shops.
Online Payments: A Bit Higher for E-Commerce
If you’re selling through Square’s Online Store, e-commerce integrations, or APIs, the fee is 2.9% + $0.30 per transaction. This slightly higher rate reflects the extra security and processing costs for online payments.
Let’s say you sell a $100 product online:
- 2.9% of $100 = $2.90
- Plus $0.30
- Total fee: $3.20
You’d get $96.80 deposited. This fee applies to platforms like Wix or WooCommerce if you’ve integrated Square for payments. It’s a bit more than in-person fees, but it’s still competitive for online businesses.
Keyed-In or Card-on-File Payments: Higher Risk, Higher Fees
When you manually enter a customer’s card details (say, over the phone) or use a stored card for recurring payments, Square charges 3.5% + $0.15 per transaction.
These are called card-not-present (CNP) transactions, and the higher fee accounts for the increased risk of fraud.
For a $75 transaction:
- 3.5% of $75 = $2.63
- Plus $0.15
- Total fee: $2.78
You’d receive $72.22. This fee applies to payments entered through Square’s Virtual Terminal or when using saved card details.
Invoices: Different Fees for Cards and ACH
Square Invoices let you send digital invoices to customers, and the fees depend on the payment method:
- Card Payments: 3.3% + $0.30 per transaction
- ACH Bank Transfers: 1% with a minimum of $1 per transaction
ACH transfers are a budget-friendly option for larger transactions. For example, if you send a $500 invoice paid via ACH:
- 1% of $500 = $5
- Since $5 is above the $1 minimum, the fee is $5
You’d receive $495. But if the invoice is paid by card:
- 3.3% of $500 = $16.50
- Plus $0.30
- Total fee: $16.80
ACH is clearly cheaper for big invoices, so encourage clients to use bank transfers when possible.
Additional Fees to Watch Out For
While Square’s transaction fees are the main cost, there are a few other charges to keep in mind. Here’s a quick rundown:
- Instant Transfers: Need your money right away? Square charges 1.75% per instant transfer to your bank account. Standard transfers (1-2 business days) are free.
- Chargebacks: Square covers chargeback fees if they fight a dispute on your behalf, which is a nice perk.
- Premium Plans: Some Square software, like Square Appointments or Square for Restaurants, has monthly fees (e.g., $29-$69 per month). These may include lower transaction rates, like 2.5% + $0.10 for in-person payments.
- Hardware: A basic magstripe reader is free, but advanced hardware like Square Terminal ($299) or Square Register ($799) has a one-time cost.
Here’s a small table summarizing key additional fees:
| Service | Cost |
|---|---|
| Instant Transfers | 1.75% per transfer |
| Square Appointments | $0-$69/month per location |
| Square Reader (Chip) | $49 |
| Square Register | $799 |
Tips to Reduce Square Fees
Nobody likes paying fees, so here are some practical ways to keep your Square costs down:
- Encourage Cash or Debit: Since credit card fees are higher, offer small discounts for cash or debit payments (check local laws first).
- Use ACH for Invoices: For large invoices, push for ACH bank transfers to save on fees.
- Increase Transaction Size: The fixed fee ($0.10-$0.30) hurts less on bigger sales. Bundle products to boost your average sale amount.
- Avoid Manual Entry: Keyed-in transactions are pricier, so use a card reader whenever possible.
- Check Premium Plans: If you process a lot of payments, a plan like Square Appointments Plus might offer lower per-transaction rates.
Comparing Square to Competitors
How does Square stack up? Compared to PayPal Zettle (2.29% + $0.09 for in-person) or SumUp (2.75% for in-person), Square’s 2.6% + $0.10 for in-person payments is competitive.
However, its online and keyed-in fees are slightly higher than some alternatives. The lack of monthly fees for basic plans makes Square a great choice for startups or businesses with low transaction volumes.
FAQs About How Much Does Square Charge Per Transaction
Q. Does Square charge different fees for different credit cards?
A. No, Square charges the same rate for all card types (Visa, Mastercard, Amex, etc.) based on the transaction type.
Q. Are there monthly fees for using Square?
A. The basic Square POS app is free with no monthly fees. Premium plans like Square Appointments or Square for Retail have monthly costs.
Q. Can I pass Square fees to customers?
A. Yes, but you must follow local laws and clearly disclose the surcharge (e.g., as a “Processing Fee” line item). Check with Square’s support for compliance.
Q. How long does it take to get paid with Square?
A. Standard transfers take 1-2 business days and are free. Instant transfers cost 1.75% and deposit funds immediately.
Conclusion: Is Square Worth It?
Square’s transaction fees are straightforward and predictable, making it a solid choice for small businesses. Whether you’re swiping cards at a pop-up shop or running an online store, Square’s fees (2.6% + $0.10 for in-person, 2.9% + $0.30 for online, and so on) are easy to understand.
By encouraging cash, ACH payments, or larger transactions, you can keep costs down. Plus, with no mandatory monthly fees and free dispute management, Square is beginner-friendly.
Disclaimer: The information in this blog is for general guidance only and reflects Square’s pricing as of June 2025. Always check Square’s official website for the latest fees and terms, as they may change. Consult a financial advisor for advice tailored to your business.
