What fees does Square charge?

Understanding Square’s Fee Structure: A Comprehensive Guide

Square, a popular payment processing platform, offers businesses a convenient and efficient way to accept payments. However, like any payment service, it comes with associated fees that vary depending on the type of transaction. This article provides a comprehensive breakdown of Square’s fee structure to help businesses make informed decisions about their payment processing strategy.

Invoice Fees

Square’s invoicing fees depend on whether the invoice is paid online or in person.

• Free Invoices: Square does not charge any fees for creating and sending invoices that are not paid online.
• Paid Invoices: For invoices that are paid online, Square charges a flat fee of 2.6% + 10¢ per transaction.

In-Person Transaction Fees

When businesses accept payments in person through Square’s hardware devices, they are subject to the same 2.6% + 10¢ per transaction fee.

Manually Entered or Card-on-File Payments

Square also allows businesses to enter payments manually or process payments from stored credit cards on file. These types of transactions incur a higher fee of 3.5% + 15¢ per transaction.

ACH Transaction Fees

For businesses that accept ACH (Automated Clearing House) payments, Square charges a 1% fee, with a $1 minimum fee. ACH payments are typically used for large payments or recurring subscriptions.

Factors to Consider

When selecting a payment processing solution, businesses should carefully consider the following factors:

• Volume of Transactions: Businesses with a high volume of transactions may benefit from negotiating lower fees with Square or exploring other payment providers.
• Transaction Type: The type of transactions processed will impact the associated fees. Businesses that primarily accept online payments or in-person transactions should factor this into their decisions.
• Integration: Square offers a range of integration options with other business systems. Businesses should ensure that the payment gateway they choose integrates seamlessly with their existing software.

By understanding Square’s fee structure and considering the factors above, businesses can make informed decisions about their payment processing needs and optimize their payment processing costs.