Square Fee Calculator
Square, a popular payment processing service, offers a variety of tools for businesses to accept payments, manage sales, and grow their operations. However, understanding the fee structure associated with using Square is crucial for businesses to effectively manage their costs. Square charges fees for various transactions, services, and hardware, and being aware of these costs can help you choose the right plan for your business needs.
How Much Does Square Charge?
Square charges different fees depending on the typ e of transaction or service being used. For standard transactions, such as in-person sales using a Square card reader, the fee is typically a percentage of the transaction amount plus a fixed fee. For example, Square charges 2.6% + 10 cents per transaction for in-person payments. However, for online payments or keyed-in transactions, the fees are slightly higher, at 2.9% + 30 cents per transaction. This difference accounts for the increased risk and costs associated with online and manually entered transactions.
Square also offers customized rates for businesses with higher sales volumes, which can provide significant savings. To qualify for these rates, businesses must process over a certain amount of sales each month and may need to negotiate directly with Square.
| Transaction Type | Fee Structure |
|---|---|
| In-Person (Standard) | 2.6% + $0.10 per transaction |
| In-Person (Manual Entry) | 3.5% + $0.15 per transaction |
| In-Person (Square Terminal/ Square Register) | 1.6% per transaction |
| Online | 2.9% + $0.30 per transaction |
| Invoices (Invoices Plus users) | 2.9% + $0.30 per transaction (card payments) 1% + min. $1 per transaction (bank transfers/ACH) |
| Invoices (Free users) | 3.3% + $0.30 per transaction (card payments) |
| Manual Entry | 3.5% + $0.15 per transaction |
How to Calculate Square Fees
Calculating Square fees is straightforward if you know the type of transaction and the applicable rates. Here's how you can calculate it:
Identify the Type of Transaction: Determine whether the payment is in-person, online, or manually keyed in, as this affects the fee percentage.
Apply the Fee Rate: Multiply the transaction amount by the applicable percentage fee. For example, if you have a $100 in-person sale, multiply $100 by 2.6% to get $2.60.
Add the Fixed Fee: Add the fixed fee (e.g., 10 cents for in-person transactions) to the result from step 2. So, $2.60 + $0.10 equals $2.70 in fees for a $100 in-person transaction.
Subtract from Total: Subtract the total fee from the transaction amount to determine the net amount you will receive.
By following these steps, businesses can accurately calculate the fees they will incur and plan accordingly.
Other Square Fees and Costs
In addition to transaction fees, Square charges for other services and hardware that businesses may need. Here’s a breakdown of some of these additional costs:
Hardware Costs
Square offers a range of hardware options for businesses, from simple card readers to full point-of-sale (POS) systems. The cost of these devices varies:
- Square Reader for Magstripe: Free for the first reader, then $10 for additional readers.
- Square Reader for Contactless and Chip: $49, which allows for contactless payments and chip card transactions.
- Square Terminal: $299, an all-in-one device for payments and receipts.
- Square Register: $799, a fully integrated POS system with a built-in customer display.
These costs can add up depending on the size and needs of your business, so it’s essential to budget for them when choosing Square as your payment processor.
Subscription Fees
Square offers additional services that come with monthly subscription fees. These services provide more advanced features for businesses looking to expand their capabilities beyond basic payment processing:
- Square for Retail: Starts at $60 per month per location, offering advanced inventory management, employee management, and sales reporting features.
- Square for Restaurants: Starts at $60 per month per location, designed specifically for food and beverage businesses with features like menu management, table management, and customer feedback.
- Square Appointments: Starts at $0 for a single user but can go up to $50 or more per month for multiple users, providing booking, calendar, and customer management features.
These subscription services are optional but can provide valuable tools for businesses looking to streamline operations and enhance customer experiences.
FAQs About Square Fees
How do you calculate Square fees?
To calculate Square fees, determine the type of transaction (in-person, online, or manually entered), apply the corresponding percentage fee, add the fixed fee, and subtract the total fee from the transaction amount. This process will help you understand your net earnings after fees.
How much are Square fees?
Square fees vary depending on the transaction type. For most in-person transactions, the fee is 2.6% + 10 cents. For online payments, the fee is 2.9% + 30 cents. There may be additional costs for subscriptions, hardware, or custom rates for high-volume businesses.
Can I use Square for personal use?
Yes, you can use Square for personal use. However, it's primarily designed for business transactions, and using it for personal payments may require setting up a business account and adhering to Square's terms of service. Be sure to review Square's guidelines to ensure you're using the platform correctly.
By understanding Square's fee structure and additional costs, businesses can better manage their expenses and optimize their use of Square's payment processing services.