What is the processing rate for Square?

Square’s Processing Fees: A Breakdown

Square, a leading payment processing provider, offers a range of payment options to businesses. The processing fees associated with these options vary depending on the method used. In-person transactions, manually entered card payments, and card-on-file transactions all incur different fees.

In-Person Transactions

For in-person transactions, Square charges a standard fee of 2.6% plus 10 cents. This fee applies to payments made through Square’s card readers, such as the Square Reader and Square Terminal.

Manually Entered Card Payments and Card-on-File Transactions

For manually entered card payments and card-on-file transactions, where the card is not physically present, Square charges a higher fee of 3.5% plus 15 cents. This fee is applicable when businesses manually enter customer card information or store customer card details for future purchases.

ACH Transactions

Square also supports ACH (Automated Clearing House) transactions, which are electronic payments transferred between bank accounts. The processing fee for ACH transactions is 1%, with a minimum fee of $1. This fee applies to payments made directly from a customer’s bank account to the merchant’s account.

Key Considerations

Businesses should carefully consider the processing fees associated with each payment method before determining which options are suitable for their needs. Higher fees for manually entered card payments and card-on-file transactions may be justified if they provide convenience or streamline operations. Conversely, in-person transactions may be more cost-effective for businesses that primarily accept payments through card readers.

Square’s transparent fee structure allows businesses to make informed decisions about payment processing options. By understanding the fees associated with each method, businesses can optimize their payment strategies and minimize processing costs while ensuring a seamless payment experience for their customers.