Square Fees: What Square Charges Per Transaction and Per Month

How much does Square charge per transaction? Are there ways you can reduce your Square payment processing fees? 

Like other payment processors, Square charges different fees based on the payment channel. However, the amount you pay will also depend on which Square plan you sign up for. While the Square Free plan requires no monthly fee, it carries a higher transaction cost and fewer benefits. There are also many different add-on fees you may have to pay, depending on the circumstances involved.

To learn more about the Square fees you should expect, read on.

TL;DR

• Square transaction fees are based on the channel involved. Higher-risk channels, like keyed-in and subscription payments, involve higher fees.
• Add-on costs and hardware cost extra. Unlike other costs, hardware is generally something you pay for once.
• Your overall price can vary based on the plan you choose. You can opt for Square Free, Square Plus, or Square Premium.
• Square is designed to offer an all-in-one, turnkey solution to payment processing. However, these benefits come at a cost. Square doesn’t offer a lot of customization options or flexibility for growing and high-volume businesses.
• While gift cards are free to set up and redeem, you will have to pay a load fee of 2.5% if you have Square Free or Square Plus. This fee disappears for Square Premium members.
• High Square fees are charged for Afterpay transactions. You will have to pay 6% of the total transaction and 30¢ per transaction.
• If you refund a transaction, Square won’t return the processing fees that were charged on the original purchase.
• For help finding the right payment processor or understanding your Square Reader fees, schedule a consultation with PayCompass’s payment experts.

How Square Fees Work

In practice, Square transaction fees include:

• A fixed-rate and percentage fee based on the payment channel
• A monthly charge based on the plan you choose
• Add-on fees for other services

You’ll end up paying different fees based on other factors as well. For example, payment processing fees will vary for in-person and ACH transactions. However, even within a single channel, such as in-person transactions, you’ll pay different amounts based on whether the transaction is swiped or keyed in.

Square is unique because it is an all-in-one payment processor. It allows merchants to accept payments online and offline. Whether you need to process an invoice with ACH or want to be paid in Bitcoin, there are options and price ranges available to match. 

When you sign up for this payment processor, you can expect the following Square card reader fees and add-on costs.

Per-Transaction Rates Based on the Channel

The amount you pay per transaction is going to depend on the channel. For example, Square credit card processing fees for in-person swiped, tapped, and dipped transactions are 2.6% of the transaction total and 15¢ per transaction. Meanwhile, an online transaction will cost 2.9% of the transaction total and 30¢ per transaction.

As a general rule, you’ll pay more when the risks associated with the channel increase. Subscriptions and keyed-in transactions are more likely to suffer from fraud and chargebacks, so these transactions cost more. On the high end, a keyed-in transaction will cost 3.5% of the transaction total, plus 15¢ per transaction.

Monthly Fees Based on Your Plan

When considering your total payment processing costs, you also have to look at how much you are paying for your subscription plan. The Square Free, Square Plus, and Square Premium plans cost $0, $49, and $149 per month, respectively. 

In general, paying for more expensive plans will make more sense if you are processing large transaction volumes. The Square Plus and Square Premium options reduce your Square reader fees and other costs. If you aren’t handling a high enough volume each month, the cost of the plan won’t be balanced out by the potential savings. 

Add-on Costs

It’s also worth considering Square’s add-on costs as well. For example, using Afterpay increases your transaction charges to 6% of the transaction total, plus 30¢ per transaction. Similarly, setting up gift cards and paying with gift cards is free. However, there is a 2.5% load fee when the gift card is loaded.

Besides these unique charges, there are other costs you’ll face. If you have to refund someone’s purchase, you will not be refunded the original transaction fees from Square. Additionally, you’ll also pay for the following types of equipment.

• Square Terminal: $299
• Square Register: $799
• Square Reader for contactless and chip: $59
• Square Stand for iPads: $149
• Square Kiosk: $149
• Square Handheld: $399

There are ways to avoid some of these hardware costs. Square advertises that the first Square Reader for magstripe is free. Additionally, tap-to-pay on iPhone doesn’t require any Square hardware. As a result, you can avoid this upfront fee as long as your iPhone is compatible.

An Overview of Common Square Fees

If you’re wondering, “How much does Square cost per month?”, it helps to break down some of the main Square card reader fees and transaction costs. Unless specifically mentioned otherwise, the fees below are based on the Square Free plan. There are also Square Plus and Square Premium plans available, but these plans charge a monthly fee for the added benefits.

Fee Type	Amount	What It Is
In-Person	2.6% + 15¢	This is a payment where you are swiping the card payment in person. In-person transactions consist of transactions that occur through your Square POS, Register, Terminal, and Reader.
Online	3.3% + 30¢	Online payments include checkout on your site, Square online store, and custom API.
Invoiced	3.3% + 30¢	This fee covers email and text invoices, as well as pay links.
Subscription	3.3% + 30¢	Subscription fees apply for recurring payments.
Tap-to-Pay on Android or iPhone	2.6% + 15¢	These are processed as card-present, in-person transactions.
Keyed-In	3.5% + 15¢	If the card number has to be keyed into the virtual terminal or POS, this transaction fee applies. Additionally, any stored-card payments are automatically charged this fee.
ACH Transactions via Invoice	1% ($1 minimum fee)	When processing ACH transactions, the type also matters. If they are deposited into Square Checking, the fee is $0. There is a $10 maximum for legacy plans, Square Plus, and Square Premium. For ACH transfers for invoices that use the Square Free plan, there is no maximum.
Monthly Fees for Each Plan	Square Free: $0 per monthSquare Plus: $49 per monthSquare Premium: $149 per month	By getting a more expensive monthly plan, you can reduce your processing fees and gain other benefits.
Bitcoin Conversions	1%	This fee applies if payments have to be converted from Bitcoin.
Afterpay	6% + 30¢	This buy now pay later (BNPL) fee applies to merchants when customers opt to use Afterpay to pay their transaction over time.

How Different Square Plans Work

To set up affordable payment processing, you have to figure out which plan reduces your overall cost. Square has three different plans, and each one charges a different monthly cost. In exchange for increasing your monthly fee, you can get lower Square fees and other important benefits.

All plans come with a few key features.

• End-to-end encryption
• Next-day transfers
• Offline payments
• Fraud prevention tools

Square Free

While the free plan doesn’t charge anything per month, it costs more per transaction.

• Tap, Dip, or Swipe: 2.6% + 15¢
• Online: 3.3% + 30¢
• Locations: $0 per location
• Gift Card Load: 2.5% load fee
• Bitcoin Conversions: 1%

Besides the many website builder and store features that vary between plans, there are also payment processing differences.

Square Plus

With Square Plus, you have to pay $49 per month for each location. In exchange for the higher price, most of your in-person and online Square transaction fees decrease. Additionally, this plan comes with advanced item settings, QR code ordering functionality, and additional site customization options.

• Tap, Dip, or Swipe: 2.5% + 15¢
• Online: 2.9% + 30¢
• Locations: $49 per location
• Gift Card Load: 2.5% load fee
• Bitcoin Conversions: 1%

Square Premium

To get Square Premium, you have to pay $149 per month for each of your locations. In addition to all the benefits and features of Square Plus and Square Free, Square Premium comes with 24/7 phone support, advanced reporting features, and real-time shipping rates.

• Tap, Dip, or Swipe: 2.4% + 15¢
• Online: 2.9% + 30¢
• Locations: $149 per location
• Gift Card Load: 0% load fee

Bitcoin Conversions: 0.5%

How Much Does Square Cost Per Month?

So, how much does Square charge? The answer really depends on the plan type, the channel you choose, your sales volume, and the hardware you need. To get a general idea of how much these fees can vary, let’s look at two very basic examples that include the same monthly sales volume.

Example 1

Plan: Square Free

Plan Cost: $0

In-Person Credit Card Transaction Volume: $3,000 

Number of In-Person Transactions: 100 transactions

In-Person Credit Card Fees: $93 (2.6% + 15¢ per transaction)

Online Transaction Volume: $10,000

Number of Online Transactions: 300 transactions

Online Fees: $420 (3.3% + 30¢ per transaction)

Total Fees: $513

Example 2

Plan: Square Premium

Plan Cost: $149

In-Person Credit Card Transaction Volume: $3,000 

Number of In-Person Transactions: 100 transactions

In-Person Credit Card Fees: $87 (2.4% + 15¢ per transaction)

Online Transaction Volume: $10,000 

Number of Online Transactions: 300 transactions

Online Fees: $380 (2.9% + 30¢ per transaction)

Total Fees: $616

As you can see from this example, many lower-volume businesses will end up spending less with a Square Free plan. Once your volume grows enough, you can reduce your total Square payment processing fees by upgrading your plan.

When Is Square the Right Choice for Your Business?

While there are many Square alternatives that offer better prices and features, there are a few situations where Square is a good choice for the typical business.

• Startups and Small Businesses: Square provides an all-in-one solution that is easy for startups and small businesses to use. With the Square Free plan, small businesses only have to pay Square fees when they make a sale. It’s fast to set up, making it a good choice for startups.
• Retail and Service Businesses: Square is useful for service businesses and retailers that want to sell across multiple channels and need many different payment options. Its integrated POS and inventory features make running a retail storefront a breeze.
• Companies That Want Add-Ons: If you want to accept Bitcoin, receive ACH payments, or offer Afterpay options, Square has add-on features you can take advantage of.

What Are the Drawbacks To Using Square?

While there are situations where it makes sense to pay Square credit card processing fees, it isn’t always the best choice. In many situations, Square’s convenience comes at a steep cost. There are a few key drawbacks to using Square.

• It Isn’t Ideal for High Sales Volumes: The biggest issue with Square payment processing fees is that they can become quite expensive as your sales volume grows. While Square Plus and Square Premium can take some of the bite out of fees, there are more cost-effective options out there for high-volume businesses.
• You Want Third-Party Processing Options: Because Square is designed to be an all-in-one payment processor, it isn’t set up to have third-party processing options. If you want more flexibility to choose your processor, you’ll need to work with someone else.
• Square Doesn’t Work if You Have Complex Needs: If you need specialized integrations or customized payflows, Square isn’t for you. Square is designed to be a ready-made payment platform, so it doesn’t have many customization options.
• You Have a High-Risk Account: Additionally, you may not be able to use Square if you have a high-risk merchant account. At the very least, using it can impact your cash flow because Square often institutes reserve requirements if there is a chargeback or fraud risk present. 
• Square Isn’t Scalable Enough: As you grow, you gain more negotiating power because of your volume. Many alternative payment processors offer better solutions. Additionally, larger companies often require customized services, which Square doesn’t offer.

How PayCompass Offers Flexible, Negotiable Payment Solutions

Whether you’re researching Stripe, PayPal, or Square fees, our team of merchant account experts can help. While it is convenient when you’re just starting out and need a basic payment processing plan, Square lacks flexibility as you grow. 

At PayCompass, we can help you negotiate pricing. We provide tailored payment solutions that are effective for growing and higher-volume businesses. From transparent fees to interchange-plus pricing, we can help you find the best payment processing solutions for your company.

Final Thoughts

While Square reader fees are fairly straightforward, the costs can vary based on the plan you choose and the transaction channel. In-person Square fees tend to cost the least. In comparison, online, keyed-in, and subscription payments tend to cost more. There are also special prices for different hardware, ACH payments, Bitcoin, gift cards, and other payments.

When you’re just starting out, the Square Free plan is often a good option. As your company grows, it makes sense to get a higher monthly payment in exchange for lower processing fees. 

Although Square offers an all-in-one payment approach and multi-channel payments, it isn’t the right choice for everyone. Large companies and businesses that need customized options are better off finding an alternative to Square. Additionally, you should look for an alternative if you want to use third-party payment processors.

If you are struggling to pay your Square credit card processing fees, we can help. Reach out to our merchant account experts today to discover customized solutions for your payment processing needs.