Advertiser Disclosure

🎁 Get a free credit card reader from Square today!

How Much Does Square Charge?

  • 22 comments
  • Updated on:
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Melissa Johnson

Melissa Johnson

Melissa Johnson has been writing about payment processing and mobile payments since 2014, and has been quoted in articles for Credit Karma and The Next Web, among others. She graduated from The University of Kansas in 2010 with bachelor's degrees in English and journalism.

We've done in-depth research on each and confidently recommend them.

We've done in-depth research on each and confidently recommend them.

Leave a comment

22 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Marc

    Using the Square mobile card reader, Square is actually making more than its fees say. When you process a Square transaction, you have to add the fee into the total transaction amount. Square then takes its fee from that. So you have to charge the customer more than the cost of goods plus the Square fee, because of this double dipping by Square. its more than the actual transaction amount, and Square is making money on top of its fees. When I go to some of the local merchants using a stand-alone reader, the receipt shows the transaction amount, plus the fee. They don’t take the fee on top of the total.

      Jessica Dinsmore

      Hi Marc,

      Square deducts its credit card processing fees from the total amount of the transaction. Unfortunately, the way the Square system is set up, the surcharge fee indicated on the receipt is never going to be 100% in line with the fee Square charges.

        Kathy

        If we charge a surcharge for using credit cards, how do we figure the cost of processing when it is different for each transaction?

          Jessica Dinsmore

          Hi Kathy,

          We have a post on Surcharges that I think will answer your question. The section on Square states:

          Square does allow for the practice of surcharging provided to follow other guidelines (including notifying Visa and Mastercard). However, because of the way Square’s system is set up, it deducts the processing fee from the total transaction (after tax, tip, and yes, the surcharge). That ultimately means you won’t be able to perfectly offset your Square fees with a surcharge — there will always be a slight difference that can’t be reconciled. Square specifically says in its help center page on surcharges that some merchants use a third-party calculator app to help them figure out the math.

          I hope that helps!

            We've done in-depth research on each and confidently recommend them.

            Lanzi baron

            Hello. My boss at the salon uses square app to collect payments with credit cards. However last month she was charged an significant amount that she noticed and she was wondering what exactly she is getting charged for?we know about the charge for credit cards but this seems a very outrageous amount just for credit cards.

              This comment refers to an earlier version of this post and may be outdated.

              Emily Hale

              Hi Lanzi,

              Here are instructions via Square’s Support Center. Scroll to the section with the header “View Your Fees” with instructions on how to access the exact fees your boss is being charged per transaction. She can do that right from her dashboard. https://squareup.com/help/us/en/article/5068-learn-about-square-s-fees

              Hope this helps and best of luck!

                This comment refers to an earlier version of this post and may be outdated.

                Cheryl VanBenschoten

                I do not see where the fee is for every transaction that is sent to our bank. The bank records the total amount of the transaction as deposited. For accounting purposes, I need to know the fees charged on a weekly, if not daily bases. Is there some where I can check this? Thanks!

                  This comment refers to an earlier version of this post and may be outdated.

                  Emily Hale

                  Hi Cheryl,

                  You can view your Square fees over time and for individual transactions from your dashboard. Here’s the guide to doing that via Square’s Support Center. Hope this helps!

                    This comment refers to an earlier version of this post and may be outdated.

                    Bob Gothman

                    Could you tell me what the standard rate is for cards if you use the Square Stand POS system? What I understand from your article it would be the 2.75% flat rate because it is not one of the all-in-one hardware systems you mentioned (Square Register/Square Terminal), but I’d like to clarify. My restaurant has an average card ticket of $15, so the 2.75% would be better than the rate on the all-in-one systems that include at per transaction fee.

                      This comment refers to an earlier version of this post and may be outdated.

                      Emily Hale

                      Hi Bob,

                      You have the right idea: If you use Square Point of Sale on a smartphone or tablet with a mobile card reader, you’ll pay the standard 2.75% per swiped, dipped, or tapped transaction. You can buy as many readers as you need and use them with a phone or tablet device. The other solutions that Square offers have slightly different processing fees as well as the respective monthly fees, as seen in the chart within this post. Hope this helps!

                        This comment refers to an earlier version of this post and may be outdated.

                        Rob

                        If using Square in tandem with Apple Pay device, are there fees for both Square and Apple?

                          This comment refers to an earlier version of this post and may be outdated.

                          Dakota Fillet

                          Hi Rob,
                          No, there are no extra fees for accepting NFC-based payments via Apple Pay. Best of luck!

                            This comment refers to an earlier version of this post and may be outdated.

                            Greg

                            Does Square handle government purchase cards, which would be handled over the phone ? I’m looking for a way to handle them without minimum monthly fees to the processing company.

                              This comment refers to an earlier version of this post and may be outdated.

                              Dakota Fillet

                              Hi Greg, I would suggest Payment Depot or National Processing as alternatives to square. They are more reliable sources when dealing with government cards. Hope this helps!

                                This comment refers to an earlier version of this post and may be outdated.

                                We've done in-depth testing of each and confidently recommend them.

                                James King

                                Inside the restaurant side of Square you are charged 2.6% + $0.10 per transaction. Reading your article and looking at a print out of sales report it appears the fees are taken out of tips as well. As an employee looking at fees and money owed to the restaurant it appears that the company is having the employees cover the fees by taking them out of the tips. Now seeing as Square makes these service fees I see no problem with paying a share of those fees. My question is are the fees taken out of tips or is there a way to have Square take the fees out of the tips made for the day? In the restaurant industry this would mean that the company I am working for is charging the employee for the system. Is this a common thing or is this possible?

                                  This comment refers to an earlier version of this post and may be outdated.

                                  Jessica Dinsmore

                                  Hi James,

                                  Square deducts its processing costs from the total transaction — that includes tax and tip, not just the base amount. We are unsure if there is a way to configure the settings so that Square’s payroll feature shunts all of the processing fees to the merchants’ costs and lets employees get the full amount of the tip. That would definitely be a question for Square. However, if paying with a card, any processor will charge a fee for the entirety of the transaction and it is legal to deduct processing fees from employee tips, so long as the deduction is only equal to the amount of the tip, not the entirety of the transaction cost.

                                    This comment refers to an earlier version of this post and may be outdated.

                                    Bernice Perusse

                                    I would like to know how to cancel the squareup service. Please contact me
                                    905-735-1552 ext 204

                                      This comment refers to an earlier version of this post and may be outdated.

                                      Jessica Dinsmore

                                      Hi Bernice,

                                      You’d need to contact Square directly to do this.

                                        This comment refers to an earlier version of this post and may be outdated.

                                        Jan Luedeman

                                        Working for a service company- plumbers. I really like square! I have worked with several different merchant services and the simplicity of Square beats all. Previously the other companies I worked with had a good rate, but by the time you paid all of the fees you were paying a lot!
                                        Would recommend in a minute!!

                                          This comment refers to an earlier version of this post and may be outdated.

                                          Mary

                                          I would like to start a very small e-commerce service business (users pay via website) that will have 2-10 transactions per month and average $50 per transaction. Would you suggest Square for this type of credit card servicing? (vs. Payline’s Payline connect plan?)

                                            This comment refers to an earlier version of this post and may be outdated.

                                            Jessica Dinsmore

                                            Hi Mary,

                                            I do recommend Square for sales volumes averaging less than $5k/mo. They offer a 30-day free trial and no early termination fee.

                                              This comment refers to an earlier version of this post and may be outdated.

                                              Penelope

                                              Every time I read your articles, you guys impressed me. You are more proactive than gov. agencies doing your job in the interchange fee industry!

                                              Thank you for your effort!

                                                This comment refers to an earlier version of this post and may be outdated.

                                              Leave a Reply

                                              Your email address will not be published. Required fields are marked *

                                              Your Review

                                              Comment moderation is enabled. Your comment may take some time to appear.
                                              Please read the "User Review and Comment Policy" before posting.

                                              Share

                                              Featured Offer: We Recommend QuickBooks 🎉

                                              Get 50% QuickBooks Online for a limited time!

                                              Take it for a spin with a free trial.

                                              Try QuickBooks Today

                                              We Recommend Fattmerchant 🏆

                                              Fattmerchant is one of our top picks for credit card processing!

                                               

                                               

                                              We love Fattmerchant's predictable pricing and excellent service.

                                              Get Started With Fattmerchant

                                              Get started with no commitment today.

                                              We Recommend Brex Corporate Card for Startups 🏆

                                              Brex Corporate Card for Startups is one of our top picks for business credit cards!

                                               

                                               

                                              For a limited time get 50,000 rewards points when you spend $1000 with Brex.

                                              Get Started With Brex Corporate Card for Startups

                                              Get started with no commitment today.

                                              We Recommend PaymentCloud 🏆

                                              PaymentCloud is one of our top picks for credit card processing!

                                               

                                               

                                              We love PaymentCloud's predictable pricing and excellent service.

                                              Get Started With PaymentCloud

                                              Get started with no commitment today.

                                              We Recommend OnDeck 🏆

                                              OnDeck is one of our top picks for Business Loans!

                                               

                                               

                                              OnDeck is our featured vendor for business loans and lines of credit. If you have at least one year in business, a personal credit score of 600 or higher, and $100K in annual revenue, OnDeck is ready to help your business get funded.

                                              Get Started With OnDeck

                                              Get started with no commitment today.

                                              ⭐️ Featured Promo! ⭐️

                                              Sign up now and qualify for a limited time deal!

                                              Standard Plan: One month free ($29.95 value)
                                              Plus Plan: Two months free ($159.90 value)
                                              Pro Plan: Three months free ($899.85 value)

                                              Learn More

                                              At BigCommerce

                                              We Recommend PaymentCloud 🏆

                                              PaymentCloud is one of our top picks for credit card processing!

                                               

                                               

                                              We love PaymentCloud's predictable pricing and excellent service.

                                              Get Started With PaymentCloud

                                              Get started with no commitment today.

                                              We Recommend PaymentCloud 🏆

                                              PaymentCloud is one of our top picks for credit card processing!

                                               

                                               

                                              We love PaymentCloud's predictable pricing and excellent service.

                                              Get Started With PaymentCloud

                                              Get started with no commitment today.

                                              Get 60% Off FreshBooks ✨

                                              FreshBooks is offering 60% off of their accounting and invoicing software for six months to help support businesses during COVID-19.

                                              Start For Free

                                              At FreshBooks

                                              We Recommend National Processing 🏆

                                              National Processing is one of our top picks for credit card processing and POS!

                                               

                                               

                                              You can currently use our exclusive promo code NP2020PROMO to get a free Pax A920 terminal for new SwipeSimple accounts and 50% off Clover devices. Some restrictions apply, learn more at National Processing.

                                              Get Started With National Processing

                                              Get started with no commitment today.

                                              We Recommend Stamps.com 🏆

                                              Stamps.com is one of our top picks for shipping software!

                                               

                                               

                                              Start a 4-week free trial with Stamps.com and get $5 in free postage to test it out. No promo code required.

                                              Get Started With Stamps.com

                                              Get started with no commitment today.

                                              Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

                                              Sign up for the Maverick Newsletter

                                              • We occasionally send out emails with special offers.