How Much Does Square Charge

Square's mobile card reader lets you accept credit card payments. But how much does Square cost? Read this review to see if it is good for your business.

You may have heard that Square is free. But that depends on what you need out of it.

The platform does provide a free magstripe reader and POS app upon sign-up. You only pay flat-rate transaction fees for each card you process.

If your small business has more advanced needs, Square offers optional paid plans.

Read on to learn all about Square fees:

• Square Processing Fees
  
• Service and Administration Fees
  
• Square Equipment Charges
  
• Square Software Fees
  
• Square Plus and Premium Features
  
• Funding Fees
  
• Is the Square Reader Worth It?
  
• Square Fees vs PayPal

Square's Processing Fees

Square charges the following credit card processing fees for each transaction:^[1]

• In-person: 2.6% + 15¢ (Free), 2.5% + 15¢ (Plus), and 2.4% + 15¢ (Premium)
  Includes swipe, chip, and contactless payments (such as Apple Pay and Google Pay), as well as prepaid gift cards

• Online: 3.3% + 30¢ (Free) and 2.9% + 30¢ (Plus/Premium)
  Includes online eCommerce card transactions and invoices

• Card-not-present: 3.5% + $0.15
  Includes manually entered keyed-in transactions via the virtual terminal and card on file transactions for recurring billing

It charges the same rates for all credit cards, including Visa, Mastercard, American Express, and Discover.

Square is a pay-as-you-go processor. There is no monthly fee for using the Square Free plan. You don't pay anything if you don't have any credit card sales during the month.

Square Administration and Service Fees

Square offers a lot of features for free. There are no fees for:

• Payment gateway
  
• Virtual terminal
  
• Online store powered by Weebly
  
• Recurring billing feature
  
• Magstripe card reader
  
• Mobile POS
  
• Refunds

It also eliminates a lot of administration fees. You do not pay any:

• Setup fees
  
• Application fees
  
• Account inactivity fees
  
• Early termination fees
  
• Dispute management fees
  
• PCI compliance fees

Square Equipment Charges

Square offers a variety of equipment to use in conjunction with its POS:^[2]

• Square Magstripe Reader: First one is free, $10 for each additional

• Square Reader for Contactless & Chip: $59 each

• Square Stand for Contactless & Chip: $149 or $14/mo over 12 months (iPad not included)

• Square Terminal: $299 or $27/month over 12 months

• Square Register: $799 or $39/month over 24 months

Square also offers complete POS kits that include everything you need. Read on to learn your options.

Square Register Kit
Starting at 1,189, it includes:

• USB receipt printer
  
• Receipt paper
  
• USB cash drawer
  
• Square Register

Square Stand Kit for iPad
Starting at $539, it includes:

• USB receipt printer
  
• Receipt paper
  
• Cash drawer
  
• Square Stand for contactless & chip
  
• Setup guide

Square's Software Fees

All Square users get the Square point of sale app for free. You can use it on a mobile phone or tablet.

The Square app offers:

• Sales reporting
  
• Inventory management
  
• Manage customer database
  
• Store customer card information
  
• Create and send invoices
  
• Sell and accept gift cards
  
• Manage employees
  
• Square online store setup

If you have more needs, the Square Plus and Premium plans offer advanced features built specifically for every type of business.

Square Plus and Premium Features

These more advanced tools are available with paid plans.

Loyalty program
Encourage repeat business with an integrated loyalty program that lets you customize rewards, track redemptions, and measure customer retention.

Square Advanced Access
Manage your growing team with customizable permissions across Dashboard, POS, and the Team app. Create unlimited permission sets, monitor activity logs, and enhance security with team member badges for clock-ins, transactions, and more.

Email marketing
Create email and social campaigns and track results, all within your POS.

Payroll
Offered as a separate add-on, Square Payroll allows you to track your employees' hours and import timecards. Features include multiple pay rates and customizable pay schedules. You can even offer benefits and 401k plans. Square takes care of tax filings.

Full-service payroll costs $35 per month plus $6 per person, while contractor-only payroll is $6 per person per month.^[3]

Square for Every Business Type

Whether you run a retail store, restaurant, or appointment-based business, Square offers tools tailored to your operations and designed to grow with you.

Retail
You can sell online, in-store, and manage your back-office all in one place. Here are some of the features:

• Manage multiple locations
  
• Advanced inventory tools, including unlimited SKUs
  
• CRM
  
• Purchase order management
  
• Employee management
  
• Get real-time reports
  
• Manage customer support

Restaurants
Get your front- and back-of-house on the same page with one system. It features:

• Customize floor plans and menus
  
• Add on customers items and modifiers
  
• Send orders to the kitchen with just one tap
  
• Online delivery integrations with apps like Postmates
  
• Create discounts

Appointments
Simplify scheduling, payments, and client management. Top appointment features:

• Free customer booking
  
• Integrate with Instagram and Google
  
• Automated reminders
  
• No-show protection by requiring pre-payment or cancellation fees

Square Funding Fees

Square's standard funding time is 1-2 business days. This has no cost.

If you want to receive funds immediately, there is an Instant Transfer option. This option has a 1.75% transfer fee of the amount you're transferring.^[4]

You'll need to link a bank account and supported Visa or Mastercard debit card. You'll also need at least $25 in your Square balance (after processing fees).

Is the Square Reader Worth It?

Financially, the Square mobile reader is a no-brainer because it's free. A big benefit is that it can process payments in "offline mode" even without an internet connection.

However, it can only accept payments by swiping. If you want to accept chip or contactless payments, you'll have to purchase the chip reader.

If you're a small business just starting out, Square can be a great affordable way to start accepting credit cards.

Square Fees vs PayPal

PayPal POS, PayPal's latest point-of-sale solution, charges 2.29% + $0.09 per card-present transaction and 3.49% + $0.09 per keyed-in transaction.^[5]

On a $10 transaction, PayPal comes out cheaper by a few cents. It comes down to which system offers the POS features you need.

However, to access the PayPal virtual terminal, you'd have to pay an extra $30 monthly fee. To store card on file for recurring billing is another $10/month. Both of these features are free with Square.

PayPal Point of Sale system has no lock-in contracts, no setup fees, and no monthly fees.

Bottom Line

Square is one of the most popular credit card processors for small businesses. Typically, businesses with small average transactions (less than $20) fare best with Square. The free mobile point of sale app, user-friendliness, no hidden fees, and immediate approval upon signing up make it hard to beat.

We recommend comparing a few credit card processors to make sure you find the one best for you. Look closely at your annual sales, average transaction amount, and necessary features. If you have what it takes to get an individual merchant account and can negotiate lower rates, you may be better off.

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