How much does Square take per sale?

Square Transaction Fees: A Breakdown

Square, a payment processing company, enables businesses to accept payments from customers seamlessly. However, like any payment processor, Square charges transaction fees for its services. Understanding these fees is crucial for businesses to manage their expenses effectively.

In-Person Sales

When a customer makes a payment in person using a physical card, Square charges a fee of 2.6% plus 10 cents per transaction. This fee structure is applicable to both credit and debit card payments. For instance, if a customer makes a purchase worth $100, Square will charge the business a fee of $2.76 ($100 * 0.026 + $0.10).

Online Sales

For online transactions, Square charges a slightly higher fee of 2.9% plus 30 cents per transaction. This fee applies to payments made through the Square Virtual Terminal or any other online payment gateway offered by Square. So, for a $100 online purchase, the business will incur a fee of $3.20 ($100 * 0.029 + $0.30).

Manually Keyed Transactions

Manually keyed transactions occur when a business enters card information manually into the Square app or website. Square charges a fee of 3.5% plus 15 cents for these transactions. Businesses often use this method when card payments cannot be swiped or inserted. For a $100 manually keyed transaction, the business will be charged $3.65 ($100 * 0.035 + $0.15).

Additional Considerations

In addition to the base transaction fees mentioned above, Square also charges fees for certain additional services:

• Chargebacks: If a customer disputes a transaction, Square may charge a $15 fee for processing the chargeback.
• International transactions: Transactions made in a currency other than the business’s default currency may incur a 1% foreign exchange fee.
• Next-day funding: If a business wants to receive funds from their sales sooner than the standard 1-2 business days, Square offers next-day funding for a 1.5% fee.

Businesses should carefully consider the transaction fees associated with Square when choosing a payment processor. Square’s fees are competitive within the industry, but businesses may be able to find lower fees from other providers depending on their transaction volume and specific needs.