How much does Square take as a fee?

Square Invoice Processing Fees: A Comprehensive Guide

Square, a popular payment processing platform, offers invoice processing services for businesses to manage their billing and get paid quickly. However, it’s important to understand the associated fees to make informed financial decisions.

Fee Structure

Square’s invoice processing fees vary depending on the payment method used by customers:

• Free Invoices: For invoices that are sent and paid online, there are no transaction fees.
• Manually Entered Card Payments: For payments processed manually by entering the customer’s card information, a fee of 3.5% + 15 cents per transaction applies.
• Online Card Payments: For payments made through Square’s secure online payment portal, a fee of 2.9% + 30 cents per transaction applies.
• ACH Transactions: For payments initiated through the Automated Clearing House (ACH) network, a flat minimum fee of 1% applies.

Additional Considerations

• Minimum Fee: For ACH transactions, the minimum fee is $1, even if the invoice is less than that amount.
• Volume Discounts: Square offers volume discounts for businesses processing high volumes of transactions.
• Monthly Fee: Some Square plans include a monthly fee, which covers invoice processing among other features.

Choosing the Right Option

The best payment method for your business depends on factors such as the volume of invoices, preferred payment methods of customers, and desired cost structure.

• For low-volume businesses with customers who prefer to pay online: Free invoices offer the most cost-effective option.
• For businesses with higher volumes and a mix of payment methods: Manually entered card payments or online card payments provide a balance between convenience and cost.
• For businesses with a high volume of ACH transactions: The flat minimum fee of 1% for ACH payments can be advantageous.

Conclusion

Understanding Square’s invoice processing fees is essential for businesses to manage their financial obligations effectively. By choosing the right payment method based on their specific needs, businesses can optimize costs and ensure efficient invoice processing.