Square charges per-transaction fees, monthly subscription fees, or both depending on which product you choose
Square is a payment processor that lets you accept credit and debit cards in person, online, or by invoice. The company does not charge a monthly account fee to open an account, but you pay fees when you process transactions. The exact amount depends on whether you use Square's basic pay-as-you-go model, a monthly subscription plan, or a combination of both.
Square's standard rate for in-person card payments is 2.6% plus 10 cents per transaction. Online payments and invoices cost 2.9% plus 30 cents. If you sign up for one of Square's subscription plans — Square Plus, Square Premium, or Square Premium Plus — you get a lower per-transaction rate, but you pay a fixed monthly fee regardless of how much you process. The subscription plans range from $20 to $300 per month, and the per-transaction rates drop as the monthly fee increases.
Key Takeaways
- Square's basic model charges 2.6% plus 10 cents for in-person card payments and 2.9% plus 30 cents for online payments, with no monthly fee.
- Subscription plans cost $20 to $300 per month and lower your per-transaction rate, so they make sense only if you process enough volume to save money.
- Keyed-in payments (when you manually enter a card number) cost more than swiped or tapped payments because they carry higher fraud risk.
- Square charges the same rates whether you use their hardware, their online checkout, or their invoicing tool — the fee structure depends on the payment method, not the device.
- ACH bank transfers and other payment methods have their own separate fee schedules and are not included in the standard card rates.
How Square's Pay-As-You-Go Model Works
With no subscription, you pay only when you process a transaction. For a customer who taps or swipes a card in person, you pay 2.6% of the sale plus 10 cents. If a customer enters their card number manually (called a keyed-in transaction), the rate is 3.5% plus 15 cents — higher because keyed-in payments are riskier for fraud. Online payments and invoices are 2.9% plus 30 cents.
This model works well if you process payments infrequently or your sales are unpredictable. You have no monthly commitment and no fee if you do not process anything in a given month. The downside is that your per-transaction cost is higher than what subscription customers pay, so if your volume grows, you may end up spending more than you would with a plan.
Square's Subscription Plans and When They Save You Money
Square offers three subscription tiers. Square Plus costs $20 per month and reduces your in-person card rate to 2.5% plus 10 cents. Square Premium costs $100 per month and brings the rate down to 2.4% plus 10 cents. Square Premium Plus costs $300 per month and charges 2.3% plus 10 cents. Online and invoice rates drop by similar amounts on each plan.
To decide whether a subscription makes sense, calculate your monthly card volume and compare the total cost under pay-as-you-go against the total cost under each plan. For example, if you process $10,000 in in-person card sales per month, pay-as-you-go costs you $260 plus $10 in per-transaction fees, or roughly $270. Square Plus would cost $20 per month plus $250 in processing fees, or $270 total — roughly the same. If you process $20,000 per month, pay-as-you-go costs about $540, while Square Plus costs about $520, so the subscription saves you money.
Square's website has a calculator that shows your estimated savings based on your monthly volume. You can also contact Square's sales team to review your numbers, though remember that they have an incentive to recommend a subscription.
Keyed-In Payments and Other Higher Fees
When a customer physically swipes or taps their card, Square charges the standard rate. When you manually type in a card number — because the customer is not present, the card reader is broken, or they prefer to pay by phone — Square charges a higher rate. Keyed-in transactions are 3.5% plus 15 cents in person, or 3.9% plus 30 cents online.
This difference exists across the entire payment industry because keyed-in payments have higher fraud rates. If you find yourself keying in cards often, it may be worth investing in a working card reader or asking customers to pay online instead. Some businesses use keyed-in payments only as a backup, which keeps the extra cost manageable.
International Payments and Currency Conversion
If you accept cards issued outside the United States, Square charges an additional 2% currency conversion fee on top of the standard processing rate. This applies whether the card is physically present or not. If you do business with international customers regularly, this fee can add up quickly, and you may want to compare Square against processors that offer better international rates.
Square does not support all currencies. The company accepts payments in US dollars, Canadian dollars, British pounds, euros, Australian dollars, and a few others. Check Square's current list before assuming you can process a customer's home currency.
Other Fees You Might Encounter
Square's card processing fees are the main cost, but other services carry separate charges. If you use Square Cash (their peer-to-peer payment app), transfers to your bank account are free if you wait one to three business days, but when ready transfers cost 1% with a minimum of 25 cents. If you use Square Invoices to send a payment request, the customer pays the processing fee, not you — so you receive the full amount. If a customer disputes a charge or requests a refund, there is no additional fee from Square, though your bank may charge you for the chargeback.
Square also offers loans through Square Capital, which is a separate product with its own terms and costs. That is not a processing fee — it is a loan you would take out if you need cash, and the interest and repayment terms are negotiated separately.
How to Reduce Your Square Fees
The most direct way to lower your costs is to encourage customers to tap or swipe instead of handing you their card to key in. Tapped and swiped payments are cheaper and faster. If you accept online payments, make sure your checkout page is straightforward to use — customers who abandon their cart do not generate a fee, but they also do not generate revenue.
Review your monthly statement to see which payment methods you use most. If you are processing a lot of volume through one method, you might save money by switching to a subscription plan. Square sends you an email each month showing your processing fees and volume, so you can track whether your business has grown enough to make a plan worthwhile.
If you are comparing Square to other processors, ask each one for a quote based on your actual transaction mix. Some competitors charge less for in-person payments but more for online payments, or vice versa. The cheapest option depends on how you actually do business, not on advertised rates alone.
Frequently Asked Questions
Does Square charge a fee if I do not process any payments in a month?
No, not on the pay-as-you-go model. You pay only when you process a transaction. If you have a subscription plan, you pay the monthly fee regardless of volume, even if you process nothing that month.
Can I switch between pay-as-you-go and a subscription plan?
Yes. You can sign up for a subscription anytime and cancel anytime. Most plans do not have a contract, so you can downgrade or switch tiers whenever your volume changes. Check your current plan details to confirm the cancellation policy.
What happens if a customer disputes a charge?
Square does not charge you an extra fee for the dispute itself, but if the customer wins the dispute, the money is returned to them and deducted from your account. Your bank may charge you a separate chargeback fee, which is not a Square fee.
Are there any hidden fees I should know about?
Square publishes its rates on its website and in your account settings. The main fees are the per-transaction rates and subscription costs. when ready bank transfers, currency conversion, and certain add-on services have their own fees, but they are not hidden — they are disclosed before you use them.
Does Square charge differently for different types of businesses?
No. Square charges the same rates to a coffee shop, a freelancer, and a retail store. The only variation is based on the payment method (in-person, online, keyed-in) and your subscription plan, not on your industry.