Square Fees & Pricing: The Ultimate Guide

Square is a POS, card processing, payment system, and an ecommerce and business management tool for small, medium-sized, and large businesses.

Square has become very popular since it was first introduced in 2009 under Squareup. The reason is mainly because of its ease of use, its flat-rate transaction fees, its lack of monthly fees or chargeback fees, the free or affordable hardware provided, the impressive mobile app, and the additional business services for multiple channel sales, inventory, marketing, payroll, customer feedback, and other business management.

Merchants consider Square as an affordable alternative to other paid POS and payment tools and systems. It can be customized to fit different business types and sizes.

Most importantly, Square has predictable fees, a transparent rate and fee system, and no hidden fees.

Square Pricing – How it Works

The pricing of Square is straightforward and transparent. The service is available to all merchants and businesses with no requirements for proving a business history and minimal other requirements.

The service is provided without a locked-in contract, and there are no termination fees charged for merchants who cancel the service or decide to return the hardware provided.

All of the basic software offered by Square is free. Any additional subscriptions are charged on a month-by-month basis, and so is the financing for the hardware.

The company doesn’t charge monthly fees, and all payments are processed with a flat-rate fee deducted.

Check our in-depth review of Squareup

A quick overview of the fees and the pricing of Square

Square POS Prices and Fees

Monthly fee for the software – $0

Swipe, tap, or chip transaction fees – 2.6% + $0.10 per transaction

Ecommerce transactions and invoice payments – 2.9% +$0.30 per payment

Keyed-in payments – 3.5% + $0.15 per payment

Square for Retail Prices and Fees

Monthly fee for the software – $0 – $299

Swipe, tap, or chip transaction fees – 2.6% + $0.10 per transaction (lower pricing is available for the paid plans)

Ecommerce transactions and invoice payments – 2.9% +$0.30 per payment

Keyed-in payments – 3.5% + $0.15 per payment

Square for Restaurants prices and fees

Monthly fee for the software – $0 – $299

Swipe, tap or chip transaction fees – 2.6% + $0.10 per transaction

Ecommerce transactions and invoice payments – 2.9% +$0.30 per payment

Keyed-in payments – 3.5% + $0.15 per payment

Square Appointments Prices and Fees

Monthly fee for the software – $0 – $90

Swipe, tap, or chip transaction fees – 2.6% + $0.10 per transaction (lower prices are charged for paid plans)

Ecommerce transactions and invoice payments – 2.9% +$0.30 per payment

Keyed-in payments – 3.5% + $0.15 per payment

Square also offers additional services, including paid Plus plans and several types of POS terminals and card readers, which are also charged with monthly fees.

The Processing Fees for Payments with Square

Mobile card or in-person payments – 2.6% + $0.10 per each transaction

Online payments – 2.9% + $0.30 per each transaction

Invoice and keyed-in payments – 3.5% + $0.15 per transaction

As a whole, Square offers some of the top-rated merchant services suitable for small and for medium-sized businesses. But whichever payment method you choose to apply for your business, you will be provided access to the following main services and features:

• No monthly fee for accepting or processing credit cards of all types
• A nifty Square dashboard that you can use as a hub to track the payments, sales, and other data from your mobile phone
• The ability to accept all credit cards, including American Express, MasterCard, Visa, Discover, and contactless payments
• Universal rates for processing of the different card types (credit, debit, corporate, prepaid, or rewards)
• Deposits are made to your bank account within 1-2 days of the payment
• An option for instant deposits with an added fee of 1% of the sum processed
• A chargeback protection fee for sellers which covers disputes amounting up to $250 per month
• Custom lower pricing for merchants with yearly revenues higher than $250,000 and with an average ticket size of more than $15

Square Point of Sales (POS) fees

Each customer is entitled to a free POS system per account for Square Payments. Once you sign up for Square, you will receive instant access to the sales, order, inventory, and customer management tools which can be accessed via the free POS. But the company also offers specific POS software designed for different businesses, including restaurant, retail, and appointment-based.

Square for Retail

This is a POS system created for smooth selling and one which is suitable for retailers of all types and sizes. The system includes advanced tools for online sales, inventory, checking out, and reporting.

Square for Retail is available as a free plan, but if you want access to more advanced features and tools, you will need to subscribe to the Plus plan (which includes the retail tools and omnichannel selling) or for the Premium plan (which includes other tools including marketing and payroll management).

Each plan allows for selling unlimited numbers, types of products, employee logins, and transactions and includes a free online store.

Pricing Plans for Square for Retail

Square for Retail Free plan

Monthly fee for the software – $0

In-person rate for processing – 2.6% + $0.10

Rate for online processing – 2.9% + $0.30

Online store features – basic

Inventory management – basic

Reporting – basic

Team management – basic

Square Marketing – requires an additional fee to be paid

Loyalty Program – requires an additional fee to be paid

Square for the Retail Plus plan

Monthly fee for the software – $60

In-person rate for processing – 2.5% + $0.10

Rate for online processing – 2.9% + $0.30

Online store features – basic

Inventory management – advanced

Reporting – advanced

Team management – advanced

Square Marketing – requires an additional fee to be paid

Loyalty Program – requires an additional fee to be paid

Square for Retail Premium plan

Monthly fee for the software – $299 or more

The in-person rate for processing – a custom rate

Rate for online processing – a custom rate

Online store features – advanced

Inventory management – advanced

Reporting – advanced

Team management – advanced with added payroll management

Square Marketing – included in the monthly fee

Loyalty Program – included in the monthly fee

Square for Restaurants

As the name suggests, Square for Restaurants is a cloud-based solution designed for restaurants of all types, including full service, quick service, bars and breweries, fast-casual or multi-concept restaurants. The restaurant software includes easy menu and in-person or online order management, fast order entry, table management, multi-location management, open checks, remote device management, and auto gratuity management.

There is a free plan, but if you want discounts and access to advanced features such as Square Payroll, Loyalty, Marketing, and Online Store, you will need to sign up for the Plus or Premium plans.

Pricing Plans for Square for Restaurants

Square for Restaurants Free Plan

• Monthly fee for the software – $0
• In-person and invoice payment fee – 2.6% + $0.10 per transaction
• Online payment fee – 2.9% + $0.30 per transaction
• Front-of-house – menu and table management tools
• Team management – basic
• Reporting – basic
• Customer support – M-F 6 a.m. to 6 p.m. Pacific time

Square for Restaurants Plus plan

Monthly fee for the software – $60 per month per location and $40 per additional POS device

In-person and invoice payment fee – 2.6% + $0.10 per transaction

Online payment fee – 2.9% + $0.30 per transaction

Front-of-house – menu, table, seat, course management tools

Team management – Team Plus

Reporting – advanced

Customer support – available 24/7

Square for Restaurants Premium plan

Monthly fee for the software – $299 or above

In-person and invoice payment fee – custom processing rates

Online payment fee – custom processing rates

Front-of-house – menu, table, seat, course management tools

Team management – Team Plus, and discounts for Square Loyalty, Square Payroll, and Square Marketing

Reporting – advanced

Customer support – available 24/7

The company offers discounts for the processing fees and rates of restaurants with more than $250,000 transactions per year.

There is also an optional fee for installing the hardware and software, starting from $599 for remote installation and setup to $1,999 for in-person setup and implementation.

Square Appointments

Square Appointments is a software solution for scheduling and appointment-based businesses like hairdressers, personal trainers, spas, makeup artists, massage therapists, and all other retail or professional services requiring customers to make appointments.

Unlike the other software solution we discussed, Square Appointments is priced based on the business’s number of employees (staff calendars). The system is free for 1 staff calendar, and there is an added monthly fee which increases with the increase in staff members and calendars.

All of the features offered are the same for the free and paid plans.

The Square Appointments includes a free booking website for 24/7 available booking for customers, integrated payments, automated reminders for client appointments, integration with Google or Instagram for easier access and booking by customers online, and more.

Pricing Plans for Square Appointments

Square Appointments for 1 Employee Calendar

Monthly fee – $0

Processing fee for payments – 2.6% + $0.10 per transaction

Square Appointments for 2-5 Employee Calendars

Monthly fee – $50

Processing fee for payments – 2.5% + $0.10 per transaction

Square Appointments for 6-10 Employee Calendars

Monthly fee – $90

Processing fee for payments – 2.5% + $0.10 per transaction

Square Appointments for 11 or More Employee Calendars

Monthly fee – custom fee

Processing fee for payments – custom fee per transaction

Square Online Store

Square Online Store is included in every free Square account along with the main POS software and payment and invoicing software.

Square Online Store is a free web builder with a drag-and-drop editor so you can build an online store with zero coding skills.

It includes automatic syncing with the Square POS and the sales of unlimited products and the processing of unlimited orders and customer transactions.

But if you want access to more advanced features such as a custom domain, remove the Square ads, abandoned cart recovery, and more, you will need to sign up for the paid Professional, Performance, or Premium plans.

Pricing Plans for Square Online Store

Square Online Store Free

Monthly fee for the software – $0

Processing fee – 2.9% + $0.30 per transaction

Other features:

• Unlimited products, customers, and orders
• Syncing with Square POS

Square Online Store Professional

Monthly fee for the software – $12

Processing fee – 2.9% + $0.30 per transaction

Other features:

• Unlimited products, customers, and orders
• Syncing with Square POS
• Custom domain name
• Removed Square branding from the store

Square Online Store Performance

Monthly fee for the software – $26

Processing fee – 2.9% + $0.30 per transaction

Other features:

• Unlimited products, customers, and orders
• Syncing with Square POS
• Custom domain name
• Removed Square branding from the store
• Abandoned cart recovery
• Discounts on shipping labels
• Customer reviews

Square Online Store Premium

Monthly fee for the software – $72

Processing fee – 2.6% + $0.30 per transaction

Other features:

• Unlimited products, customers, and orders
• Syncing with Square POS
• Custom domain name
• Removed Square branding from the store
• Abandoned cart recovery
• Discounts on shipping labels
• Customer reviews
• Real-time calculator for shipping rates

Square also offers local delivery and curbside pickup tools with the Square Online Store following the requirements for social distancing and safe deliveries due to the COVID-19 pandemic.

The Fees and Rates for Square Add-on Software and Additional Services

Square offers a vast range of additional add-ons and services in addition to its core POS, payment, and ecommerce software, hardware, and services. Here are some of the main supplemental services and products offered by Square and their pricing.

Square Invoicing

Square Invoicing allows all of the Square POS and payment processing service clients to issue and send invoices for free. It is suitable for consulting firms, contractors, repair services, freelance professionals, made-to-order retailers, and other people or businesses.

Square Invoicing is free and is part of the free package. It can be easily managed via the Square Dashboard on your phone or computer.

Its pricing is the same as that of the basic free Square package:

In-person payment fee – 2.6% + $0.10 per transaction

Online payment – 2.9% + $0.30 per transaction

Card on-file payment – 3.5% + $0.15 per transaction

Square Payroll

This is a full-service payroll software that you can use to calculate the payments, taxes for employees and contractors, and additional payroll services via the Square Dashboard.

It can be used on its own or alongside the Square POS, Square Team Management, or other products.

The pricing depends on whether you will be paying both employees and contractors or contractors only and how many people you will pay per month.

Here is how the pricing for Square Payroll is calculated:

Square Payroll for Contractors Only Prices and Fees

Monthly fee – $5 per person paid

Features included:

• Mailing of 1099 MISC forms by Square
• Payment by direct deposit, check, or Cash App
• Unlimited pay runs per month and free seasonal inactivity

Square Payroll for Employees and for Contractors Prices and Fees

Monthly fee – $29 for the software subscription + $5 per person you paid

Features included:

• Full-service payroll
• Automatic calculations of taxes
• Tax payments and filings
• Timecards
• Mailing of W-2 and 1099 MISC forms by Square
• Payment by deposit, check, or cash app
• Unlimited pay runs and free seasonal inactivity

Square Team Management

Square Team Management is included for free in every Square account, and some paid plans include Team Plus, which can be subscribed to separately. Team Management Plus consists of some advanced features such as wage rate setting, permission level setting, timecard notes, labor reports, and more.

Square Team Management Pricing and Fees

Monthly fee – $0

Features:

• 1 permission level
• Time clock and time card, break tracking
• Payroll export

Square Team Plus Pricing and Fees

Monthly fee – $35

Features:

• Unlimited permission levels
• Time clock and time card, break tracking
• Payroll export
• Overtime reporting and activity logs
• Labor reporting

Square Marketing

This feature allows for creating, sending, and tracking e-mail and social marketing campaigns, automated e-mail collection and campaigns, coupon redemption, campaign and sales performance reports, and more.

The monthly fee depends on the number of customer contacts you have and is as follows:

• For 0-500 customer contacts – $15 per month
• For 501-1,000 customer contacts – $25 per month
• For 1,001- 2,000 customer contacts – $35 per month
• For over 2,001 customer contacts – custom pricing

Square Loyalty

This software solution allows for building customer loyalty programs directly from your POS or your Square online store. It keeps track of the customer orders, payments and others and allows for customization of the rewards per dollar spent or per visit.

The pricing for the Square loyalty is based on the number of loyalty visits and is as follows:

• For 0-500 loyalty visits – $45 per month
• For 501-1,500 loyalty visits – $75 per month

Square Capital

Square Capital is an additional service that offers small business loans to Square customers ranging from $300 to $100,000.

Square offers loans based on the card sales made, and their loans are repaid automatically by deducting a percentage of daily sales. The entire loan should be repaid in up to 18 months.

Fees for Square Hardware

Here are the prices for buying the Square hardware needed for reading credit cards and accepting payments:

• The first basic Square magstripe reader is free
• Every next magstripe reader is $10
• Square reader for chip and contactless payments is $49 with a free magstripe reader
• Every additional Square reader for chip and contactless payments is $29
• Square stand for contactless and chip payments
• Square Terminal (a card terminal with a screen that supports magstripe, chip, and contactless card transactions) costs $299 or $27 monthly for 12 months
• Square Register (a high-end terminal with two large screens, available for free with Square for Restaurants and supporting magstripe, EMV, and NFC payments) or sold separately for $799
• Square Register full kit with a cash drawer, a USB receipt printer, and paper is $1,329

Square Financing for the Hardware

Square offers financing with no interest for purchases of its hardware for $49 to $10,000. The orders that qualify can be split into monthly installments for 3,6,12, or 24 months.

Applying for the financing has to be done directly to Square and is not provided by a third party.

Final words

Square has evolved from a mobile POS card payment processing system into an ecommerce and business platform that can help support and allow users to manage entire businesses, including sales, inventory, staff, marketing, and more.

The basic services and the first magstripe card swiper are free. The additional add-ons and features can be added on a monthly basis or as needed.

Best of all, Square’s pricing of the services, hardware, and software solutions are affordable, predictable, and free of any hidden fees.

Plus, there are no binding contracts and no cancelation fees.