Square Fees Explained: Understanding Your Payment Costs in 2025

Understand Square fees for payment processing, subscriptions, and hardware. Optimize costs with plans, custom pricing, and alternatives for 2025 growth!

TL;DR:  

Transaction Fees:

  • In-Person: 2.6% + $0.10
  • Online: 2.9% + $0.30
  • Card-Not-Present: 3.5% + $0.15

Subscription Plans: Range from free to $79 per month  

Custom Pricing: Available for businesses processing over $250,000 annually

Square has cemented its place as a fintech powerhouse, processing hundreds of billions of dollars annually and serving millions of businesses globally. For small businesses, this isn’t just a number, it’s a game-changer. Traditional payment systems often saddle small business owners with steep fees, rigid contracts, and clunky technology, stifling their ability to thrive in a fast-paced, digital world. Square counters this with a straightforward approach: transparent pricing, no long-term commitments, and modern tools like mobile payments and real-time analytics.

Its all-in-one ecosystem, covering payment processing, point-of-sale solutions, and business management, levels the playing field, letting small operations run lean and smart without the headaches of legacy financial setups. This guide cuts through the complexity of Square’s pricing, offering a clear breakdown of transaction fees, subscription plans, and hardware costs. Whether you’re swiping cards in-store, processing online orders, or managing a high-volume operation, we’ll show you exactly what you’ll pay, and how to optimize those costs. Beyond the numbers, we’ll explore strategies to reduce fees and highlight alternatives that could better suit your business. Because in 2025, mastering your payment processing isn’t just smart, it’s essential for growth. See the top payment processing solutions here.

Use this link to receive $3,000 in statement credits with Square.

Transaction Fees Breakdown

Square’s transaction fees are influenced by the type of transaction, which includes options such as in-person, online, and card-not-present (CNP) transactions. The fees vary based on the payment method, with specific rates for in-person, online, and card-not-present transactions. Higher rates are typically charged for card-not-present transactions due to increased risk.

Understanding these transaction fees helps in grasping the total cost of using Square’s payment processing services. Each transaction type comes with its own set of fees, and knowing these details can help you manage your expenses more effectively.

Let’s delve into the specific fees associated with in-person, online, and card-not-present transactions.

Infographic: Square Fees Outlined

In-Person Transactions

For in-person transactions, Square charges a starting processing fee of 2.6% + $0.10 per transaction for credit card processing. This structure consists of a fixed amount and a percentage of the transaction total: 2.6% plus $0.10. Card present transactions are considered the least expensive and are viewed as the safest form of payment processing.

These fees apply to various in-person payment methods, including debit card transactions, credit card processing, and contactless payments. Whether you’re accepting payments at a physical point of sale or using a mobile payment solution, understanding these fees can help you manage your costs effectively.

Online Transactions

The transaction fees for online payments with Square are 2.9% + $0.30 per transaction. This rate is slightly higher than in-person transactions due to the increased risk and complexity involved in online payment processing. Square payment fees are a consideration for businesses when deciding on payment methods.

These fees apply to various online payment methods, including credit card transactions, debit card transactions, and payments made through online stores. For businesses that rely heavily on e-commerce and online sales, knowing these fees is crucial. By knowing the costs associated with online transactions, you can better manage your expenses and pricing strategies.

Card Not Present Transactions

Square charges a fee of 3.5% + $0.15 for each square credit card fees card-not-present transaction processed. These transactions are increasingly common in today’s digital commerce environment, especially for online sales and remote services. The higher fees for card-not-present transactions can significantly affect profit margins for businesses, making it essential for sellers to consider these costs when pricing their products and services.

These fees apply to various card-not-present payment methods, including transactions made over the phone, through invoices, or via online platforms where the card is not physically present. For businesses frequently processing remote or online payments, knowing these fees is essential.

Subscription Plans and Monthly Fees

Square offers several subscription plans, each with its own monthly fee. These plans cater to different business needs and come with varying features. Square offers three main subscription plans: Free, Plus for $60/month, and Premium for $79/month. Each plan is designed to meet the specific needs of different types of businesses, from small shops to larger enterprises.

Certain premium features on Square may incur additional monthly costs, but Square does not charge a monthly fee for standard payment processing services. Knowing the costs and features of these subscription plans helps in managing your business expenses effectively. Each plan offers different features and benefits, so choosing the right one can help you optimize your operations and reduce your overall costs.

Square for Retail

Square for Retail offers various pricing plans tailored for retail businesses. The Plus plan costs $60 per month, while the Premium plan costs $79 per month. These plans include features such as payment management, inventory management, online store capabilities, and business analytics.

These features are designed to help retail businesses manage their operations more efficiently and effectively. Selecting the right plan optimizes payment processing and other business functions, reducing overall costs and improving profitability.

Square for Restaurants

Before:

Restaurants can utilize a free basic access plan within Square for Restaurants. The entry-level plan costs $0, while the Plus plan costs $60/month. Under the Plus plan, each additional countertop device is charged at $40. This cost is applied monthly for every device. The monthly fee for using the Mobile POS for restaurants is $50 per month per location. The Premium plan in Square for Restaurants is available for businesses with more than $250,000 in annual sales.

After:

Restaurants can utilize a free basic access plan within Square for Restaurants. The pricing options are as follows:

  • The entry-level plan costs $0.
  • The Plus plan costs $60/month, with each additional countertop device charged at $40 per month.
  • The monthly fee for using the Mobile POS for restaurants is $50 per month per location.
  • The Premium plan is available for businesses with more than $250,000 in annual sales.

These plans are designed to help restaurants manage their operations more efficiently, from table management to payment processing. Selecting the appropriate plan helps optimize your restaurant’s operations and reduce costs.

Square Appointments

Square Appointments offers three pricing tiers: Free, Plus ($29/month), and Premium ($69/month). The Plus tier is priced at $29 per month, while the Premium tier costs $69 per month. The Team Plus management platform for Square Appointments is billed at $35 per month per location. The basic team management platform is available for free.

These plans are designed to help appointment-based businesses manage their schedules and payments more efficiently. By choosing the right plan, you can optimize your operations and reduce your overall costs.

Hardware Costs

Square offers various hardware solutions. These range from phone-based magstripe readers to comprehensive POS terminals. The price for Square hardware kits varies between $526 and $1,439. Users can either utilize their own smartphone or tablet or purchase advanced hardware directly from Square.

Understanding these hardware costs is essential for managing your business expenses. Selecting the right hardware helps streamline payment processing and other business functions, reducing costs and boosting profitability.

Square Reader

Square provides a magstripe reader that can be obtained at no cost for the first unit. Additional magstripe readers after the first one are priced at $10. The cost of the chip and contactless payment reader for Square is $49. These affordable options make it easy for businesses to start accepting payments without a significant upfront investment.

These readers are ideal for small businesses or those just starting out, providing a simple and cost-effective way to process in-person payments. Selecting the right reader ensures efficient and cost-effective payment processing.

Square Stand

The first generation Square Stand costs $129. Alternatively, it can be financed for $23 a month over a period of six months. The second generation of the Square Stand can be either purchased outright for $149 or rented with a monthly payment option of $14 for 12 months. These options provide flexibility for businesses looking to invest in more advanced hardware without a large upfront cost.

Square Stands integrate seamlessly with Square’s software, providing a comprehensive point-of-sale solution for businesses. Investing in a Square Stand enhances payment processing and overall customer experience.

Square Terminal and Register

The Square Terminal costs $299 or can be financed at $27/month. The Square Register is priced at $799 or available for $39/month. These more advanced hardware options are designed for businesses with higher transaction volumes and more complex needs.

Investing in a Square Terminal or Register can streamline your payment processing and improve your overall business operations. Opting for the right hardware ensures efficient and cost-effective payment processing.

Additional Fees

Square has various services that might incur additional fees, including payment processing, POS software, hardware, and add-on tools. ACH bank transfers have a fee structure set at 1%. There is also a minimum charge of $1 for each transaction. Square does not impose fees on certain payment types such as cash or checks. These additional fees can add up, so it’s important to be aware of them when managing your business expenses.

Knowing these additional fees helps in managing costs and maintaining profitability. Let’s take a closer look at some specific additional fees you might encounter.

Instant Transfer Fees

Square charges a fee of 1.75% for instant transfers to an external bank account. The minimum amount for an instant transfer is $25 after Square’s fees, while the maximum transfer can be up to $10,000. New Square sellers may initially have a limit of $2,000 per day for instant transfers. Funds not eligible for instant transfers will be sent to linked bank accounts within one to two business days.

These instant transfer fees allow businesses to access their funds quickly, which can be crucial for managing cash flow. Knowing these fees helps better manage finances and ensures timely access to funds.

Refund Fees

Refunded transactions do not incur additional processing fees from Square. This can be an important aspect of understanding transaction costs when using Square, as it means that you won’t be charged extra for processing refunds.

Knowing Square’s refund fees aids in managing costs and maintaining profitability. This can be particularly important for businesses that frequently process refunds, such as retail stores and restaurants.

Add-On Software Fees

Square’s optional software add-ons come with individual monthly fees. Each add-on may have a monthly fee, and additional payment is required for various add-ons. There is a 30-day free trial available for Square’s loyalty program.

These add-ons can provide valuable features and functionality for your business, but it’s important to be aware of the additional costs. Knowing these fees helps manage expenses and ensures optimal value from your investment.

Custom Pricing Options

Businesses generating over $250,000 annually can negotiate for lower transaction rates with Square. To qualify for custom pricing rates, businesses typically need to demonstrate significant annual processing volumes. Businesses processing significant transaction volumes may qualify for a flat fee structure, potentially leading to lower square processing fees.

Square provides tailored pricing solutions for high-volume businesses to ensure they benefit from more competitive rates. Qualifying for custom pricing options reduces overall fees and boosts profitability. This can be particularly beneficial for large volume businesses with complex operational needs.

Reducing Your Square Fees

There are several strategies for minimizing Square fees, including raising product prices and utilizing zero-cost processing methods. One effective strategy for cutting down Square fees is to raise the prices of your products to cover the transaction cost. A small increase in product prices can help offset processing costs associated with Square fees.

Using a zero-cost credit card processing method allows businesses to pass credit card processing fees onto customers. Under zero-cost processing, customers essentially absorb the transaction fees rather than the business.

Monitoring and analyzing transaction volumes can help businesses negotiate better rates with payment processors. Signing up for a higher plan tier or meeting annual volume thresholds may reduce processing rates for Square users.

Alternatives to Square

Exploring alternatives to Square is crucial for businesses seeking the best payment processing solution tailored to their needs. Consideration of different payment processors can lead to lower fees and diverse features, enhancing overall business efficiency.

PayPal Zettle excels in online payment processing and offers a simplified checkout experience for e-commerce. Square has a referral program that allows users to earn credits on processing fees or discounts on hardware by inviting businesses.

Exploring these alternatives helps you find the best payment processing solution for your business. Let’s take a closer look at two popular alternatives: PayPal Zettle and SumUp.

PayPal Zettle

PayPal Zettle charges a fee of 2.29% for card transactions. It has a straightforward fee structure with a consistent card transaction fee. PayPal Zettle is a payment processing service that charges fees for card transactions.

This service excels in online payment processing and offers a simplified checkout experience for e-commerce businesses. Opting for PayPal Zettle streamlines online transactions and enhances overall payment processing.

SumUp

SumUp’s transaction fees for card payments are often lower than those of Square, making it a cost-effective alternative. SumUp offers transaction fees starting at 1.69% for card payments, which can be more affordable than Square for low-volume businesses. Unlike Square, SumUp does not charge ongoing monthly subscription fees, making it appealing for small businesses.

With lower transaction fees and no recurring monthly costs, SumUp presents an attractive payment option for businesses considering alternatives to Square. Opting for SumUp reduces overall payment processing costs and improves profitability.

Summary

Understanding Square’s fee structure is essential for managing your business expenses effectively. From transaction fees to subscription plans and hardware costs, each aspect of Square’s pricing can impact your bottom line. By breaking down these fees and exploring strategies for minimizing costs, you can optimize your payment processing and improve your overall business operations.

Exploring alternatives to Square, such as PayPal Zettle and SumUp, can also provide valuable insights and options for reducing your payment processing costs. By making informed decisions about your payment processing solutions, you can ensure that your business remains profitable and efficient.

Frequently Asked Questions

What are the transaction fees for in-person payments with Square?

Square charges a transaction fee of 2.6% plus $0.10 per transaction for in-person credit card payments. This straightforward fee structure helps you easily calculate the costs associated with each sale.

Does Square charge a monthly fee for its standard payment processing services?

Square does not charge a monthly fee for its standard payment processing services, making it an accessible option for businesses.

How much does the Square Reader cost?

The first Square magstripe reader is free, while additional magstripe readers are priced at $10 each. If you're looking for the chip and contactless payment reader, it costs $49.

What are the fees for instant transfers with Square?

Square charges a fee of 1.75% for instant transfers to an external bank account, with a minimum transfer amount of $25 after fees and a maximum of $10,000.

Are there custom pricing options available for high-volume businesses?

Yes, high-volume businesses generating over $250,000 annually can negotiate lower transaction rates and access custom pricing options with Square.

Michael Seaman

Michael Seaman

Michael Seaman is the co-founder and CEO of Swipesum. A veteran of the payments industry and former employee at one of the largest payments companies, Michael, along with his brother Stephen, has led Swipesum since its inception in 2016. Swipesum is committed to providing innovative payment solutions and exceptional service to its diverse clientele. In his free time, Michael enjoys traveling with his wife Kelsey and their three children, pole vaulting, and engaging in typical Midwestern dad activities.

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