How Much Does Square Cost For Payment Processing & Software?
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.
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.
Table of Contents
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:
- Downloading the Square Point of Sale app
- Chargebacks and dispute management
- Square support
- 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)|
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.
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.
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.
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.
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.
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