How much is the transfer fee on Square?

Understanding Square’s Instant Transfer Fees: A Closer Look

Square’s instant transfer service, while convenient, comes with associated fees. Understanding these costs is crucial for businesses budgeting and pricing. While Square’s official documentation offers limited specifics, a breakdown of the key elements reveals a two-tiered structure.

The first component is a consistent, flat “payment services fee” of 0.05% per transaction. This fee applies uniformly to each instant transfer, regardless of the amount transferred or other transaction variables. It represents a standardized contribution to the overall processing cost of the transfer.

Crucially, a second, less transparent element exists: a “SaaS fee”. This fee is not fixed and is not publicly disclosed as a percentage. Rather, it operates as an additional charge included in the overall cost of the instant transfer. Its exact proportion relative to the payment services fee is unknown.

In conclusion, while Square’s 0.05% payment services fee is explicit, the exact calculation of the SaaS fee remains opaque. Businesses planning to utilize Square’s instant transfer services need to carefully consider that the combination of these two fees adds to the overall transfer expense. Further clarification from Square on the SaaS fee component is necessary for accurate budgeting and pricing strategies.