What percentage of money does Square take?

Understanding Square’s Transaction Fees

Square, a popular payment processing platform, offers businesses a convenient way to accept payments from customers. However, it’s crucial to be aware of the transaction fees associated with using Square’s services.

Standard Credit Card Transactions

For standard credit card transactions, where the customer physically presents their card at your business, Square charges a fee of 2.6% plus 10 cents per transaction. This fee applies to all major credit cards, including Visa, Mastercard, and American Express.

Card-Not-Present Transactions

Card-not-present (CNP) transactions occur when the customer does not physically present their card at the business. This includes transactions made online, over the phone, or through mail or fax orders. Due to the higher risk of fraud associated with CNP transactions, Square charges a slightly higher fee of 3.5% plus 15 cents.

Example Calculations

To illustrate the fees, let’s consider the following examples:

• If you process a $100 credit card transaction in person, the Square fee would be $2.60 + 10 cents = $2.70.
• If you process a $200 online transaction, the Square fee would be $3.50 + 15 cents = $3.65.

Additional Considerations

It’s important to note that Square may also charge additional fees for certain features and services, such as:

• Chargebacks: If a customer disputes a transaction, Square may charge a fee to process the chargeback.
• International transactions: Transactions made outside of the United States may incur additional fees.
• Monthly subscriptions: Some Square plans include monthly subscription fees.

Conclusion

Understanding Square’s transaction fees is essential for businesses planning to use the platform. By weighing the fees against the convenience and other benefits offered by Square, businesses can make informed decisions about the best payment processing solution for their needs.