How much does Square charge a merchant?

Understanding Square’s Pricing for Merchants

Square, a popular payment processing solution, offers a range of pricing options tailored to the specific needs of businesses. Understanding these charges is crucial for merchants to optimize their payment processing costs.

Online Card Payments

Square charges a fee of 2.9% to 3.3% plus a fixed transaction cost for online card payments. This fee applies to all major credit and debit cards, including Visa, Mastercard, American Express, and Discover. The fixed transaction cost varies depending on the amount of the transaction.

In-Person Card Transactions

In-person card transactions have lower fees compared to online payments. Square offers two plan options for in-person transactions:

• Square Reader Plan: Charges 2.6% plus 10¢ per transaction.
• Square Terminal Plan: Charges 2.9% plus 10¢ per transaction.

The Square Terminal Plan also includes additional features such as inventory management and employee management.

Manually Entered/Card-on-File Payments

Manually entered payments or payments made using cards on file have a higher fee structure. Square charges a flat fee of 3.5% plus 10¢ per transaction for these types of payments.

Free Invoices

Square offers free invoices to merchants. This allows businesses to send invoices to customers without incurring any processing fees.

Choosing the Right Plan

The best Square pricing plan for a merchant depends on the volume and type of transactions they process. Businesses with a high volume of in-person card transactions may benefit from the lower fees offered by the Square Reader Plan. Merchants with a mix of online and in-person payments may prefer the flexibility of the Square Terminal Plan.

In conclusion, Square’s pricing varies based on the type and volume of transactions processed. Merchants should carefully evaluate their payment needs to determine the plan that best meets their requirements and minimizes their overall costs.