Does Square charge a percentage?

Square’s Transaction Fee Structure for Online Payments

Square, a widely recognized payment processing platform, provides businesses with a convenient way to accept online transactions. Customers can easily make secure payments through Square’s online checkout or invoice system.

Percentage and Per-Transaction Fees

Square’s online payment processing fees consist of two components:

• 2.9% Charge: A percentage-based fee applied to the total transaction amount.
• 30 Cents Flat Fee: A fixed charge added to each transaction, regardless of the amount.

This fee structure applies to all online payments processed through Square, including:

• Credit cards (Visa, Mastercard, American Express)
• Debit cards
• Electronic check (ACH) payments
• Apple Pay
• Google Pay

Example Calculation

To illustrate how the fees work, let’s consider a hypothetical transaction of $100:

• 2.9% Charge: $100 x 0.029 = $2.90
• 30 Cents Flat Fee: $0.30

Total Transaction Fee: $2.90 + $0.30 = $3.20

In this example, the business would pay Square $3.20 for processing the $100 transaction.

Competitor Comparison

Compared to other online payment processors, Square’s fees are generally competitive. Some providers may offer slightly lower percentages or flat fees, while others may charge additional fees for certain transactions. Businesses should carefully research the fee structures of different platforms before selecting a provider.

Additional Fees

It’s important to note that Square may charge additional fees for certain services, such as:

• PCI compliance scanning
• Chargebacks
• International transactions
• Premium support

Businesses should review Square’s pricing guide to determine if any additional fees apply to their specific use case.

Conclusion

Businesses that choose to use Square for online payment processing should be aware of the 2.9% plus 30 cents per transaction fee structure. This information allows businesses to accurately calculate the cost of accepting online payments and make informed decisions about their payment processing strategy.