Understanding Square processing fees.

Square Payments

During these times it’s even more important that we’re fully transparent in how our payment processing fees are distributed. When a customer spends money with your business, Square only keeps a fraction of the fees, and most of that goes right back into your business.

Card-present payments

When a customer taps, dips, or swipes their card in person, you pay 2.6% + 10¢ per transaction. There is a lower risk of fraudulent activity when the cardholder is present.

Card-not-present payments

There are multiple types of card-not-present payments. Square pays more for these transactions and the fee increase goes directly to the card issuing bank to help mitigate the risk of fraud and protect your business.

When you manually key in your customer’s card details or use a card on file, the fee is 3.5% + 15¢.

When a customer makes a purchase through your Square Online Store, Square Online Checkout, eCommerce API, or pays an invoice online, the fee is 2.9% + 30¢ for cards or 1% with a minimum $1 per transaction for ACH bank transfers (via invoices only).

Card processing fees explained.

To process a sale, there are several types of set fees within a transaction. These are set not by Square but by cardholder banks and card networks. They are included as part of Square’s card processing fee. Learn more

Interchange fees

Every time a customer uses a credit or debit card in your store, a fee is charged by the cardholder’s bank, such as Wells Fargo or Chase. This fee can vary greatly, depending on the cards being used by your customers. When Square processes a transaction on your behalf, Square is required to give a percentage of the funds collected to your customer’s card issuer.

Assessment fees

Associations such as Mastercard or Visa also collect fees, called dues and assessments, for the use of their card brands as well as the ability to process transactions through their payment networks. Square is required to give a percentage of the amount collected from your customer to these associations.

Risk and PCI compliance

PCI DSS is a security standard all businesses that accept credit cards must comply with to safely and securely accept, store, process, and transmit cardholder data during debit and credit card transactions. Square’s tools help keep sellers PCI compliant. Square complies with PCI standards so you don’t have to validate your compliance, nor do you pay associated annual fees.

How Square processing fees work.

Here’s a breakdown, using a blended rate, of where the money goes every time you make a sale.

Data in figure based on illustrative example

Square tools and features.

With Square, you benefit from many resources designed to help you run your business.

Point of sale and eCommerce solutions

Download the free Square POS app or launch an online store so you can sell right away without any up-front investment.

Fraud prevention

Fraud can happen in both low-risk transactions and higher-risk transactions such as card-not-present purchases. We work around the clock to evaluate the legitimacy of your buyers to protect your business.

Dispute management

Get free dispute management services for chargebacks. We cover the fee for every dispute that we fight on your behalf. And we’ve saved sellers $330 million since 2011 by managing and winning disputes for them.

No fees for refunds

When you issue a refund, your customer is refunded their full purchase amount, and you are refunded Square’s processing fee.

Advanced reporting tools

Access important data and powerful tools straight from your Square Dashboard so you can easily keep track of your sales and make important decisions about your business.

Square support

Our in-house phone support is available from 6 a.m. to 6 p.m. PT, or you can email them anytime, 24/7. Connect with and learn from other sellers in our Seller Community.

Customer Directory

Keep your customers’ information organized and secure. Use it to send email, make appointments, or send invoices.

Team Management

Track team hours, overtime, and breaks. Free timecards that sync seamlessly to Square Point of Sale make payroll simple.

Inventory management

Change item details like price, name, or quantity in real time. Upload groups of items faster, track stock quantities, and get email alerts when items run low.

We advocate on your behalf.

Merchants in the U.S. pay over $100 billion every year in interchange fees for electronic payments—a growth of 72% from 2009 to 2018. A large portion of these fees go toward paying cash back and other rewards programs for card members. At Square, we have an entire team that works on sellers’ behalf to negotiate with banks and card networks to keep rates as low as possible for our sellers.

Hear what other business owners have to say about how industry costs and interchange fees work.

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