What commission does Square charge?

Decoding Square’s Transaction Fees: Simplicity and Transparency

Square has built a reputation for its straightforward pricing model, a refreshing change from the often-complex fee structures of other payment processors. Unlike many competitors that layer on monthly fees, hidden charges, or convoluted tiered pricing plans, Square’s approach centers on a simple, per-transaction fee structure. This transparency allows businesses to easily predict and budget for their payment processing costs.

But what exactly are those transaction fees? The answer isn’t a single number, but rather a range dependent on how the payment is processed. The most common scenarios are:

• In-Person Swipes (Card Present): This is generally the most cost-effective method. For payments processed using a Square reader with a physical card swipe, the fee is typically 2.6% of the transaction amount plus 10¢ per transaction. This means that for a $100 sale, the processing fee would be $2.70 ($2.60 + $0.10).

• Keyed-In Transactions (Card Not Present): If a customer provides their card details manually (e.g., over the phone or typing them into a Square system), the fee increases. This reflects the higher risk associated with these transactions, as there’s no physical card present to verify. The exact fee for keyed-in transactions varies depending on your specific Square plan and may be higher than the in-person swipe rate. It’s crucial to check your Square account dashboard for the precise current rate.

• Other Payment Methods: Square supports various payment options beyond credit and debit cards, such as Apple Pay, Google Pay, and other digital wallets. Fees for these methods usually align with the in-person swipe rate, though it’s advisable to consult Square’s official website or your account details for specific rates.

Beyond the Transaction Fee:

It’s important to note that while Square’s core pricing focuses on per-transaction fees, there might be additional costs depending on specific business needs. These could include fees for certain add-on services or specialized hardware. However, Square is generally upfront about these extra charges, making it easier for businesses to make informed decisions.

In conclusion, Square’s pricing model prioritizes transparency. While the transaction fee varies depending on the payment method, the straightforward structure allows businesses to easily calculate their payment processing costs, promoting better financial planning and predictability. Always refer to the official Square website or your account dashboard for the most up-to-date and accurate fee information.