What percentage does Square take out?

Square’s Transaction Fee Structure: A Breakdown

Square, the popular payment processing company, offers various payment options to businesses, each with its own associated transaction fee. Understanding these fees is crucial for businesses to optimize their payment strategies and minimize expenses.

In-Person Transactions:

• Contactless payments (taps), card dips, and swipes: 2.6% fee + $0.10 per transaction

Online Transactions:

• Purchases made through Square’s online store or eCommerce API: 2.9% fee + $0.30 per transaction

Square Payment Links:

• Transactions initiated through Square Payment Links, which allow customers to pay online without creating an account: 3.3% fee + $0.30 per transaction

Additional Considerations:

• Square charges additional fees for certain services, such as chargebacks and PCI compliance scans.
• Businesses can purchase additional services from Square, such as invoicing and payroll, which may have separate fees.
• Square offers custom pricing for high-volume businesses that process over $250,000 per year.

Tips for Minimizing Square Transaction Fees:

• Choose the lowest-cost payment method for in-person transactions (taps, dips, swipes).
• Use Square’s online store or eCommerce API for online transactions, which have a slightly lower fee than Payment Links.
• Encourage customers to pay through direct invoices or recurring payments, which may have lower fees than card-based transactions.
• Negotiate custom pricing with Square if your business processes substantial volumes.

By understanding Square’s transaction fee structure, businesses can make informed decisions about their payment options and minimize their processing expenses.