How much of a fee does Square take?

Understanding Square’s Transaction Fees

Square, a renowned fintech company, offers a range of payment processing services that cater to various business needs. To ensure transparency and clarity, understanding the transaction fees associated with Square’s services is crucial.

In-Person Payments

In-person payments, which include transactions made using a physical payment terminal, incur a standard processing fee of 2.6% plus 10¢ per sale. Regardless of the payment method, whether it’s debit, credit, or contactless, this fee remains consistent.

Keyed-In Transactions

Keyed-in transactions, also known as manual entries, carry a slightly higher processing fee. For these transactions, where the card details are manually entered instead of being swiped or tapped, the fee is 3.5% plus 15¢ per sale. This increased fee is attributed to the elevated risk of fraud associated with keyed-in transactions.

Additional Charges

It’s important to note that certain additional charges may apply in specific scenarios. For example, if a customer opts to pay using certain premium credit cards, such as American Express or Discover, an additional fee may be incurred. Similarly, if a business enables certain features, such as chargebacks or recurring payments, additional fees may be applicable.

Choosing the Right Plan

Square offers multiple pricing plans tailored to the specific requirements of different businesses. The Basic plan, which includes the standard in-person and keyed-in transaction fees, is suitable for businesses with a modest transaction volume. For businesses with higher transaction volumes or specialized needs, Square provides customized plans with tiered pricing options.

Understanding Square’s transaction fees is essential for businesses to accurately forecast their payment processing costs and optimize their financial planning. By carefully considering the transaction types and choosing the appropriate pricing plan, businesses can effectively manage their expenses and ensure that Square’s services align with their financial objectives.