Figuring out all of Square’s rates and fees can be a bit overwhelming. Here’s what you need to know about Square transaction fees, monthly software costs & more.
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Square’s fees are simple to understand and very competitive compared with similar companies. But pricing Square for your business can be slightly more complicated than you’d expect, given the wide range of services the company offers merchants.
So how much does Square cost? That honestly depends on what you plan to do with Square. Are you only processing transactions in person? Do you sell online? Do you use the virtual terminal or card-on-file features? Do you want any of the software add-ons?
Before you make any decisions, you might want to research more about what Square offers and how it works. But don’t worry, we’ll break down all of Square’s pricing features in this post.
Is Square Free?
Square offers free software with no long-term commitment as well as more advanced products for a monthly fee and additional add-ons. You will still need to pay Square’s processing fees, which are upfront and easy to understand.
Square is an exceptionally scaleable product that can grow along with your business. If you’re just starting out, the free app might be enough for you, but if your small business expands, you can upgrade your POS software and add more in-depth features like loyalty and payroll, all with Square’s trademark ease of use.
What Fees Are Included With Square?
While Square’s flat credit card processing rates aren’t the cheapest way to process credit cards, you do get quite a few fee-related perks for your money. In other words, there are a lot of things Square does not charge you for.
There are no Square fees for:
- Activation
- Downloading the Square Point of Sale app
- Chargebacks and dispute management
- Square support
- Refunds
- Advanced reporting tools
- Account inactivity
- PCI compliance
- Account takeover protection
- End-to-end encrypted payments
- Active fraud prevention
- Next-business-day deposits
- Your first Square Reader for magstripe
- Deleting your Square account
Square Rates At A Glance
Square transaction fees are simple to understand and will vary depending on what type of transaction you are processing. Square rates will also vary slightly depending on what software you are using. Fixed fees are as follows:
Square Service |
Monthly Fees |
Transaction Fees |
Manually-Keyed Transaction |
NA |
3.5% + $0.15 |
Integrated Online Transaction |
NA |
2.9% + $0.30 |
ACH Transactions (Invoices Only) |
$20 |
1% ($1 minimum) |
Square POS |
$0 |
2.6% + $0.10 |
Square For Restaurants |
$0/$60/custom |
2.6% + $0.10 |
Square For Retail |
$0/$60/custom |
2.6% + $0.10 (2.5% + $0.10 paid plan) |
Square Appointments |
$0/$29/$69 |
2.6% + $0.10 (2.5% + $0.10 paid plan) |
Square Banking |
$0 |
N/A |
While card-not-present and invoice fees are consistent across products, that’s not the case for monthly fees and card-present transactions.
How Much Does Square Charge Per Transaction?
As mentioned, Square’s fees are upfront, but they do vary slightly depending on the software you use and the type of transaction. If you want to learn how to calculate your Square credit card processing fees, I recommend checking out our Square cost comparison article, Is Square The Cheapest Credit Card Processor For Your Business? That will show you how to calculate your fees and how well Square credit card fees stack up against an interchange-plus pricing plan.
Square deducts its fees from the total value of your transaction — including tax and tip. The fees are deducted before the funds ever hit your bank account (instead of deducting an entire month’s worth of fees at once).
Now, let’s look at Square’s merchant fees for its specific programs.
Square Card Reader, Terminal, & Register Fees
If you use Square Point of Sale’s mobile card reader on compatible devices (smartphones, tablets, etc.), you’ll pay the standard 2.6% + $0.10, whether you’re dipping a chip card, swiping a gift card, or tapping with an NFC transaction. This also applies to businesses that opt for one of Square’s all-in-one pieces of hardware: Square Register or Square Terminal.
Previously, there had been different price schemes for different hardware, but it’s all been standardized to 2.6% + $0.10 for any customer who joined after August 2019. You can also qualify for Square’s lower 2.5% + $0.10 price with certain paid monthly plans (see below).
This payment processing pricing model is known as flat-rate pricing, in contrast to tiered rates, subscription rates, or interchange-plus rates. Flat rates, in essence, flatten your processing rates, making small transactions more expensive and larger transactions less expensive. While we recommend interchange-plus or subscription pricing in most cases, some businesses may appreciate the predictability of the fixed, flat-rate pricing that Square charges on credit card transactions.
Square’s flat-rate pricing also has some advantages when processing cards that have higher interchange rates, as is often the case with American Express. Square charges the same rate for all types of cards, including American Express. While this means you pay a bigger markup over interchange for your typical Mastercard or Visa card, it also means you save money on American Express and many business/rewards cards.
Square Invoice Fees
Square Invoice charges 2.9% + $0.30 per online invoice sent, except when using Square’s Card on File system, which saves customer card information. In this case, the transaction incurs a fee of 3.5% + $0.15. This reflects the fact that these transactions are considered card-not-present and have some additional security concerns.
Square also now offers ACH payments for invoice payments at a cost of 1% (minimum $1).
The fees are applied when the customer pays the invoice.
Square Online Fees
Square’s online fee encompasses, as you might expect, typical online transactions. This includes the Square Online Store, Square Online Checkout, eCommerce API, and online invoicing when not using a card on file (see above). Because these are card-not-present transactions, they’re charged a higher fee than point of sale transactions. That fee is 2.9% + $0.30. The rate drops to 2.6% + $0.30 with the Premium plan, the highest pricing tier you can choose when you set up your Square Online store.
Coincidentally, this is the same rate charged by Stripe, another popular third-party processor specializing in online transactions that uses flat-rate pricing. It’s slightly higher than the average cost for an online transaction, which is between a 2.3%-2.5% interchange rate. That said, it’s not too far outside the median, and Square provides a lot of additional value.
Square Virtual Terminal Fees
The “riskiest” of card-not-present transactions are those that are manually keyed in with one of Square’s apps or virtual terminal. Virtual terminal fees are also charged in the case of saved card information that is used in lieu of swiping, dipping, etc. These fees are charged when you’re taking a payment over the phone, for example, or manually entering the information of a malfunctioning chip card that also fails to swipe.
Square uses flat-rate pricing here as well but at a higher rate of 3.5% + $0.15. Square’s pricing is a little unusual compared to its competitors in that the percentage rate is on the high side —PayPal’s is 3.1%, Shopify’s is 2.9% — but the flat portion of it is half as expensive at $0.15 rather than $0.30. What this means in practice is Square will be cheaper for smaller transactions and more expensive for larger ones, at least where keyed-in transactions are concerned.
Square Cash Fees
Square Cash is a digital wallet that allows you to send money to both friends and family, and you can use Square cash for business as well. The cash app works similarly to PayPay or Venmo and also accepts bitcoin transactions. Funds are generally available by the next day and, for an instant deposit, there is a fee of 1.5% of the transfer amount.
Does Square Have A Monthly Fee? Square Costs For POS Software
Square does offer a free plan and all of Square’s specialized software services now have free versions, giving you access to some of Square’s most popular features. There are still processing fees and optional subscription services and add-ons, but you can still access many of its features for no cost.
Square Point Of Sale Costs
Square’s Point of Sale software is free, so if you’re going this route, you’ll only have to worry about hardware costs unless you want to purchase optional features, such as loyalty plans (starting at $45/month).
The free app includes some basic inventory, reporting, and employee management tools.
Square For Retail Costs
Square for Retail can be easily confused for Square Point of Sale, as both are free at the entry point. Weirdly, at the free level, Square for Retail offers fewer options than Square Point of Sale, so if you’re looking to get the most bang for your no-buck, you’re better off with the more generic software.
Square for Retail plans are:
- Free: The free plan lets you have any number of devices at any number of locations. You’ll also get a free online store and basic inventory tools. Processing rates are the standard 2.6% + $0.10 (in-person) and 2.9% + $0.30 (online).
- Plus: The Plus plan costs $60/month per location. It otherwise provides all the functionality of the free plan plus advanced inventory tools, advanced retail reports, and Square Team Management. You’ll also get Square’s elusive 2.5% + $0.10 (in-person) rate. Online transactions are still 2.9% + $0.30, however.
- Premium: Custom pricing available to customers processing over $250K per year. These plans are negotiated on an individual basis and include everything in the Plus plan, along with discounts on other Square services.
Square For Restaurants Costs
Square for Restaurants is Square’s foray into industry-specific software, and you can get it for free. Unlike Square for Retail, Square for Restaurants offers a lot of unique functionality in its basic configuration.
You’ll get:
- Monday-Friday 6 AM to 6 PM PT customer support
- Fast-order entry
- Table management
- Menu management
- Order management
- Remote device management
- Multilocation management
- Open checks
- Repeat items
- Dining preferences
- Dark mode
- Auto gratuity
- Advanced discounts
- Square Team Management
Here are the Square for Restaurants plans:
- Free: Everything listed above, with unlimited devices and locations.
- Plus: This plan costs $60/month and an additional $40/month per location. You’ll get everything in the free plan, plus:
- 24/7 customer support
- Auto-86ing and item counts
- Shared device settings
- Seat management
- Course management
- Live sales
- Advanced reporting
- Reopen closed checks
- Shift reports
- Close-of-day reports
- Auto gratuity, including party size thresholds
- Closing procedures
- Section sales reports
- Square Team Plus
- Premium: Has custom pricing, includes everything in the Plus plan, and offers discounted rates on other Square services.
Square Appointments Costs
Square Appointments is software that combines booking functionality with POS. It’s geared toward small businesses that offer scheduled appointments (spas, for example).
Square Appointments’ pricing is based on the number of employees with whom clients can book appointments.
- Free: Booking for one employee/sole proprietor. Transactions are charged at 2.6% + $0.10.
- $29/Month: Plus tier that offers multiple locations. Additionally, transactions are processed at Square’s lowest 2.5% + $0.10.
- $69/Month: Premium tier that comes with advanced reporting and other features. Additionally, transactions are processed at Square’s lowest 2.5% + $0.10.
How Much Does Square Charge For Other Apps & Services?
Square is a comprehensive platform with many optional add-ons for businesses that want expanded functionality. You don’t need these to process transactions, but they may be worth considering if they meet your business’s specific needs.
Team Management: Starting At Free
Team Management is Square’s timekeeping add-on. It also supports user permissions so that you can restrict access to certain features as necessary. The permission levels are customizable, too, so you’re not locked into specific roles and abilities; just be aware that the free version only supports one set of permissions. Employee management has a tip reconciliation feature and is included at no extra charge in Square for Retail.
The Team Plus version, which has more advanced features, is $35/month per location, but a 30-day free trial is available if you’re curious. It supports multiple wage rates, sales reporting, and sales reporting.
Invoices Plus: Starting At $20/Month
Square’s invoicing service charges a flat rate and has Square’s standard 2.6% + $0.10 transaction fee for in-person payments. It features custom templates and fields along with milestone-based payment schedules and project folders to help organize your small business.
Payroll: $29/Month + $5/Employee
Payroll isn’t available in every state yet, but that will probably happen soon. For a $29 monthly base subscription plus $5 per employee per month, you’ll get timekeeping, direct deposit, records of time off and sick days, payroll tax filing, workers comp, and more. Square supports hourly wages, salaries, and flat payments, too. There’s also a contractors-only plan that simply costs $5 per month per contractor, with no monthly subscription required. Check out our Square Payroll pricing guide for a more detailed breakdown.
It’s worth noting that while you do get timekeeping with Payroll, you don’t get the other Employee Management features, such as permissions settings. For that, you’ll have to subscribe to both services.
Loyalty: Starting At $45/Month
Square places its loyalty program under the umbrella of “customer engagement,” along with marketing and customer feedback, so it’s all integrated. Square’s digital loyalty program lets you reward customers for repeat visits.
The rewards scheme is customizable, so you can select the rewards, set the parameters to earn them, and give names to the reward scheme itself. The whole system runs from within the Point of Sale app. Square for Restaurants and Square for Retail also support Square’s loyalty program.
Marketing: Starting At $15/Month
Square’s customer engagement tools include a customer database, which you can use to get feedback as well as send out marketing emails. With the customer database integration, you can keep records of what customers buy (and when) and then use that information to target customers with specific recommendations or special offers.
Pricing starts at $15/month and scales according to the number of loyalty visits per location.
Square Banking: No Fees
Square has been slowly increasing its bank-like offerings. Anyone who signs up to sell with Square can qualify for a Square Checking account. Square does not charge service, minimum balance, monthly maintenance, overdraft, or even ATM fees.
Importantly, this is now the easiest way to speed up your deposits. If you have a Square Banking account, your money will be immediately available through your Square checking account. You can then access it through your Square Debit Card or provided checking service.
How Much Does It Cost To Use Square?
Square fees and overall costs ultimately depend on how much you plan on using the available features. You can start using Square for free, aside from its processing fees (and the cost of Square credit card readers and POS bundles), and then scale up with more advanced software offerings and add-ons.
But let’s delve into a few example scenarios to give you a better understanding of what to expect.
Example Merchant 1: A Budget-Conscious Business Owner
Merchant 1 is a small, budget-conscious operation doing roughly $3K/month in sales with an average ticket of $20. They’re keeping it simple and using just the free reader and the free Square POS app. At the 2.6% + $0.10 rate, they’re looking at about $0.62 per transaction. With around 150 transactions a month, Square will cost Merchant 1 around $93/month.
Example Merchant 2: A Small Quick-Serve Restaurant
Merchant 2 is a single-location quick-serve restaurant using Square for Restaurants, a Square Stand, and two terminals, and doing $7,500 a month in card sales with an average ticket of $10. Let’s assume they’re still paying off the hardware, so that’s $70/month in fixed fees. Square for Restaurants transactions are charged 2.6% + $0.10 for all plans. With 750 transactions a month costing around $0.36 per transaction, they’ll spend about $270 in transaction fees. In total, that’s about $340/month in total Square costs.
Example Merchant 3: A Larger, Multilocation Business
Merchant 3 is a retail store with multiple locations and a Square Register at each location. The store does around $10K/month in card sales, with an average ticket of $50. Let’s assume the Square Registers are still being paid off. Let’s also say that Merchant 3 opted for the Square Retail Plus plan to get access to advanced inventory tools. That will cost $180/month. The three Square Registers will cost $117/month. The transaction costs, at 2.5% + $0.10, will run an average of $1.25 each. With around 200 transactions a month, the transaction cost per month will be around $250. In total, Merchant 3 is spending around $547/month on Square.
The Bottom Line On Square Credit Card Fees
One of the reasons Square is so well regarded at Merchant Maverick — and why it’s so popular with merchants — is that the company makes it very easy to figure out exactly what you’re paying. There are no hidden fees or additional costs apart from processing fees and optional software.
That said, you’ll want to make sure Square is still the best option for you or if an alternative to Square might fit you better. In particular, Square offers incredible value to businesses that want to process credit card transactions but don’t necessarily make a lot of them. High-volume, low-ticket-sale businesses may find Square to be a bit on the expensive side.
If you’re new to Square and trying to figure out how much Square is going to cost you, all of the numbers can seem overwhelming. Start by figuring out which of Square’s services you’ll regularly use — specifically, for online and in-person sales. Invoices might make up a significant portion of your sales too. You don’t really need to worry about estimating keyed entry and other less-common transactions; just plan for some transactions to cost a little bit more. The software costs are also predictable.
Recommended Reading:
Square Rates & Fees FAQ
Is Square free to use?
No, Square charges fees on every card-based transaction you process with its software. In most cases this will be 2.6% (of the sale) + $0.10 for in-person transactions or 2.9% + $0.30 for online transactions.
Is the Square reader free?
Square offers customers one free magstripe-capable Square Reader. Additional or more comprehensive hardware will have to be purchased.
How much does it cost to use the Square card reader?
There’s no cost to using the Square reader beyond the cost of the transaction. Fees depend on the type of transaction, but start at 2.5% + $0.10.
Does Square charge a monthly fee?
For its basic services, no. Some of the “Plus” and “Premium” plans for Square of Restaurants and Square for Retail, as well as certain add-ons, have monthly fees, however. The good news is all of these are opt-in, so you’ll only get them if you ask for them.
What percentage does Square take per transaction?
There are four possibilities, depending on the type of transaction and type of plan you have:
- 2.5% + $0.10
- 2.6%+ $0.10
- 2.9% + $0.30
- 3.5% + $0.15
How are Square fees calculated?
Square calculates its fees based on the total amount of the sale. That includes the cost of the item, tax, tip, and any additional surcharges.
Does Square take a percentage of tips?
Yes, Square calculates its fees based on the total amount of the transaction, including tips. Check out our guide to restaurant credit card processing for more detailed information.
Does Square negotiate rates?
Square’s business model relies on predictable flat-rate pricing, so the company generally won’t negotiate special rates. However, it is possible to negotiate discounts on bundled services, particularly if you’re a high-volume user.
How much does Square charge per invoice?
Square Invoice charges 2.9% + $0.30 per online invoice sent, except when using Square’s Card on File system, which saves customer card information. In this case, the transaction incurs a fee of 3.5% + $0.15. This reflects the fact that these transactions are considered card-not-present and have some additional security concerns.
Does Square have a reduced fee schedule for not-for-profit organizations?
This comment refers to an earlier version of this post and may be outdated.
Hi Sumatra,
Unfortunately, they do not. Square offers powerful features at competitive prices (but no discounts) to nonprofits looking to expand their fundraising and donation options. You can read all about Square’s nonprofit offerings in our Complete Guide To Square Nonprofit Fundraising & Donation Tools article. Best of luck to you!
This comment refers to an earlier version of this post and may be outdated.