Square's standard fees for card payments

Square charges 2.6% plus 10 cents for every in-person card payment processed through their readers, and 2.9% plus 30 cents for online payments or invoices. These are the rates for most small businesses using Square's basic service. The percentage is calculated on the total transaction amount, so a $100 payment costs $2.60 in fees for in-person or $3.20 for online.

These rates explore whether the customer pays with a debit card, credit card, or digital wallet like Apple Pay. Square does not charge different rates based on card type the way some processors do. The fee is taken automatically when the transaction completes — you see the net amount (payment minus fees) deposited into your bank account.

Key Takeaways

  • In-person card payments cost 2.6% plus 10 cents per transaction; online payments cost 2.9% plus 30 cents.
  • ACH bank transfers (when a customer pays directly from their bank account) cost 1% with a $0.30 minimum and $5 maximum per transaction.
  • Square charges monthly subscription fees only if you use Square for Restaurants, Square Appointments, or other specialized products — basic payment processing has no monthly fee.
  • Refunds and chargebacks do not refund the processing fee you already paid, and chargebacks carry an additional $15 fee.
  • Square's rates are fixed and do not change based on your sales volume or how long you have been a customer.

ACH transfers and bank payments

If a customer pays you directly from their bank account instead of using a card, Square charges 1% of the transaction amount, with a minimum of $0.30 and a maximum of $5 per transfer. This is cheaper than card processing for larger amounts — a $500 bank transfer costs $5 (the maximum), while a $500 card payment costs $15.90.

Bank transfers take longer to complete than card payments. Square typically deposits ACH funds within 1 to 3 business days, whereas card payments usually arrive the next business day. Some customers may not have the option to pay by bank transfer depending on how you set up your Square invoices or payment links.

Monthly fees and subscription products

Square's basic payment processing has no monthly fee. You only pay per transaction. However, if you use Square for Restaurants, Square Appointments, Square Online, or other specialized products, those services carry their own monthly subscription costs that range from $0 to several hundred dollars depending on the product and features you choose.

Check your Square dashboard under "Subscriptions" or "Products" to see whether you are paying for any add-on services. Many small businesses sign up for a specialized product during setup and forget about it, so the subscription continues charging even if they stop using that feature.

Refunds, chargebacks, and dispute fees

When you issue a refund to a customer, Square does not refund the processing fee you already paid on that transaction. If you charged $100 and paid $2.60 in fees, and then refund the $100, you keep the $2.60 cost. The refund itself does not incur a new fee — you are straightforward returning the customer's money.

Chargebacks (when a customer disputes a charge with their bank instead of asking you for a refund) cost you an additional $15 fee on top of the refund amount. If a customer disputes a $100 charge, you lose the $100 plus $15. You also lose the original processing fee you paid. Chargebacks can also affect your account standing with Square if they happen repeatedly.

International payments and currency conversion

Square does not process international card payments directly through most of their basic products. If you receive a payment from a customer outside the United States, the card issuer or payment network typically handles currency conversion, and you may see additional fees depending on the customer's bank and card type.

For businesses that need to accept international payments regularly, Square offers Square International, which has different fee structures. Check with Square directly about rates for your specific countries, as these vary and are not published on their standard pricing page.

How Square's fees compare to other processors

Square's 2.6% plus 10 cents for in-person payments is competitive with other major processors like Stripe (2.7% plus 5 cents for in-person) and PayPal (2.99% plus 30 cents for online). The difference is usually less than a dollar per transaction, so the choice between processors often comes down to features, customer support, and which tools integrate with your other business software rather than fees alone.

If you process a high volume of transactions, some processors offer volume discounts or tiered pricing. Square's rates do not change based on how much you process in a month — you pay the same percentage whether you do $1,000 or $100,000 in sales.

Viewing your fees on your Square account

Log into your Square Dashboard and go to "Transactions" to see the fee breakdown for each payment. Click on any transaction and you will see the gross amount, the fee amount, and the net deposit. Your bank deposits show only the net amount (after fees are subtracted).

You can also read a CSV report of all transactions for a date range, which includes fee amounts. This is useful if you need to track fees for accounting or tax purposes. Square also sends a monthly statement email that summarizes total fees paid during that month.

Frequently Asked Questions

Does Square charge a fee if a payment fails?

No. If a card is declined or a payment does not go through, Square does not charge you a fee. You only pay when a transaction successfully completes and the money is captured.

Can I negotiate Square's fees?

Square's published rates are fixed for all small businesses. You cannot negotiate a lower percentage. Some enterprise customers or very high-volume sellers may have access to custom pricing, but this is not available through standard Square accounts.

What happens to fees if I use Square's invoicing feature?

Invoices sent through Square are treated as online payments, so they cost 2.9% plus 30 cents. If the customer pays by bank transfer through the invoice, the ACH rate of 1% (max $5) applies instead.

Do I pay fees on tips?

Yes. If a customer adds a tip to their payment, the fee is calculated on the total amount including the tip. A $100 payment with a $10 tip costs 2.6% of $110 (plus 10 cents) for in-person, not just 2.6% of the $100 base amount.

What if I process the same payment twice by accident?

You will be charged fees on both transactions. Square does not automatically detect or reverse duplicate charges. You would need to issue a refund on the duplicate payment, which means you lose both the original fee and the refund does not return the fee to you.