What are the processing percentages for Square?

Square’s Processing Fees: A Comprehensive Guide

Square, a leading payment processing platform, offers various payment options for businesses. Each method comes with a specific processing fee, which influences the final amount received by the merchant. Here’s a breakdown of Square’s processing percentages:

In-Person Transactions:

• 2.6% + 10¢ per transaction

This fee applies to payments made in person using Square’s card reader or mobile app. It includes transactions where the card is physically present (swiped or inserted).

Online Payments:

• 2.9% + 30¢ per transaction

This fee is charged for payments processed online, such as through a virtual terminal or website integrated with Square’s checkout system.

Invoiced Payments:

• 3.3% + 30¢ per transaction

Square invoices allow businesses to send payment requests to clients electronically. This fee applies to invoices paid through the Square platform.

Manually Entered Payments:

• 3.5% + 15¢ per transaction

This fee is incurred when payments are manually entered into the Square system, rather than being processed automatically through a card reader or online checkout.

Impact on Merchant Revenue:

These processing fees have a direct impact on the final amount received by the merchant after a transaction. For example, if a business processes a $100 in-person transaction, it will receive $97.40 after paying the processing fee of $2.60.

Additional Considerations:

• Square does not charge monthly fees or setup costs.
• Transactions processed with Square’s contactless or chip card readers may incur lower fees than those processed with traditional magnetic stripe readers.
• Businesses can adjust their pricing to account for these fees to ensure they maintain their desired profit margins.

Understanding Square’s processing fees is crucial for businesses using its platform. By carefully assessing the fees associated with different payment methods, merchants can make informed decisions about which options work best for their specific needs and budget.