What Square Charges You for Payments and How to Understand the Fees

Square's fee structure depends on how you accept payment

Square charges different fees depending on whether you swipe a card in person, key in a card number by hand, or accept a payment online. In-person card swipes cost 2.6% plus 10 cents per transaction. Hand-keyed cards (when the customer isn't there) cost 3.5% plus 15 cents. Online payments through Square's checkout or invoicing tools also cost 2.9% plus 30 cents. These are the base rates as of now, though Square can change them with notice.

Beyond the per-transaction fee, Square charges a monthly fee only if you use certain features. The basic Square account has no monthly minimum. If you add Square Payroll, Square Invoices with recurring billing, or Square Online with a website, those tools come with their own monthly costs — separate from payment processing fees. You pay the transaction fee every time money moves, regardless of whether you have a monthly subscription.

Square also charges fees for services beyond basic card processing: cash advances (a percentage of the loan), refunds (you lose the transaction fee but not the percentage), chargebacks (a flat fee per dispute), and international cards (an extra 2% on top of the base rate). If a customer's card is declined, you are not charged. If you process a refund, Square refunds the transaction fee but keeps the percentage of the sale.

Key Takeaways

• In-person card swipes cost 2.6% plus 10 cents; hand-keyed cards cost 3.5% plus 15 cents; online payments cost 2.9% plus 30 cents.
• Square has no monthly fee for basic payment processing, but add-on tools like Payroll, Invoices, or Online store each have their own monthly cost.
• International cards, chargebacks, and cash advances each carry extra fees on top of the standard transaction rate.
• When you issue a refund, Square returns the transaction fee but the percentage of the sale is gone — you cannot recover it.

How Square calculates what you owe each month

Square deposits money into your bank account daily or weekly (you choose the schedule). The fees are deducted from that deposit, not billed separately. If you process $1,000 in card swipes on a given day, Square calculates 2.6% of $1,000 ($26) plus 10 cents per transaction, subtracts that from the $1,000, and deposits the remainder. You see the net amount hit your account, not the gross sale.

Your Square Dashboard shows a transaction history that breaks down each fee. You can see the card type (Visa, Mastercard, Amex, Discover), the amount, the fee charged, and the net deposit. This history is the source of truth for what you paid. Square also sends a monthly statement that totals all fees for the month, though the daily dashboard is more useful if you need to spot a specific transaction.

If you use Square's invoicing tool to send a bill to a customer, and they pay by card through the invoice link, that payment is treated as an online transaction (2.9% plus 30 cents), not a swipe. If the same customer walks in and you swipe their card, it costs 2.6% plus 10 cents. The method of payment determines the fee, not the relationship with the customer.

Why fees differ between payment methods

In-person card swipes are the cheapest because Square can verify the card is real and the cardholder is present. The card reader confirms the chip or magnetic stripe, and fraud risk is lowest. Hand-keyed transactions cost more because there is no physical card to verify — the customer could be anywhere, and the risk of fraud or chargebacks is higher. Online payments fall between the two because Square can verify the card but cannot confirm the cardholder is physically present.

Amex and Discover typically cost more than Visa and Mastercard, though Square's published rates do not break this out by card brand. If you process a lot of Amex, your average fee per transaction will be higher than if you process mostly Visa. Some card networks also charge Square an interchange fee (a percentage that goes to the card issuer), and Square passes part of that cost to you.

Fees you might not expect

If a customer disputes a charge and files a chargeback through their bank, Square charges you a flat fee (currently $15 per chargeback, though this can vary). You also lose the original sale amount — the customer's bank reverses the deposit. If you refund the customer before they file a chargeback, you only lose the transaction fee, not the chargeback fee. This is why some businesses refund quickly rather than wait for a dispute.

If you use Square's Cash Advance feature to borrow money against future card sales, Square charges a percentage of the loan (not a flat interest rate). The percentage varies based on your sales history and creditworthiness, but it is typically between 10% and 50% of the amount borrowed. This is not a traditional loan — you repay it by Square taking a percentage of your daily card deposits until the loan is paid off.

International cards (issued outside the United States) incur an extra 2% fee on top of your standard rate. A Visa card issued in Canada, for example, would cost you 2.6% plus 10 cents (for a swipe) plus an additional 2%, totaling 4.6% plus 10 cents. This fee covers the cost of currency conversion and international card network fees that Square passes to you.

How to see your fees in real time

Open your Square Dashboard and go to the Transactions tab. Every payment you have processed appears with the gross amount, the fee charged, and the net deposit. Click on any transaction to see the breakdown: card type, fee percentage, flat fee, and total deducted. This is the most direct way to verify what Square charged you.

Your bank statement will show the net deposits from Square, not the fees separately. If Square deposited $973.90 into your account, that means the gross sales were higher and fees were deducted before the deposit. To find the gross amount and the fee, you must check the Square Dashboard, not your bank statement.

Square also sends a monthly statement email that summarizes total fees for the month. This is useful for budgeting and tax purposes, but it does not show individual transactions. Keep both the daily dashboard and the monthly statement for your records.

Comparing Square to other payment processors

Square's in-person rate of 2.6% plus 10 cents is competitive with Stripe (2.7% plus 5 cents for in-person) and PayPal Here (2.7% plus 5 cents). Online rates vary more widely: Square charges 2.9% plus 30 cents, while Stripe charges 2.9% plus 30 cents for the same service, and PayPal charges 3.49% plus 49 cents. Hand-keyed transactions are where Square's 3.5% plus 15 cents sits in the middle of the market.

The real difference between processors is not the headline rate but what you get for that fee. Square includes invoicing, a free card reader, and a basic online store in the standard account. Stripe requires you to build your own checkout or pay for a partner platform. PayPal Here charges per transaction but includes some features Square charges extra for. Calculate your total cost across all the tools you actually use, not just the per-swipe rate.

Fees that do not apply to you

Square does not charge a fee to set up an account, and there is no monthly minimum if you only process card payments. You are not charged for declined transactions, for customer refunds you issue (though you lose the original fee), or for money sitting in your Square account before you transfer it to your bank. You are also not charged for using Square's free card reader or for accessing your transaction history.

If you use Square's free tier (no monthly subscription), you pay only the per-transaction fee. The moment you add Payroll, Invoices with recurring billing, or an Online store, you pay a monthly fee for that specific tool — but basic payment processing remains fee-free at the account level.

Frequently Asked Questions

What happens if I refund a customer?

Square refunds the transaction fee (the percentage and flat fee) back to you, but you lose the sale amount itself. If you sold $100 and paid $2.60 in fees, refunding the customer returns the $2.60 to you and removes the $100 from your account. You end up where you started, with no net loss of fees.

Do I pay Square's fees if a customer's card is declined?

No. If the card is declined, the transaction does not go through and you are not charged. You only pay fees on successful transactions.

Why does an online payment cost more than a swipe?

Online payments have higher fraud risk because Square cannot verify the cardholder is physically present. The extra cost (2.9% plus 30 cents instead of 2.6% plus 10 cents) reflects that risk. In-person swipes are the safest for Square, so they cost less.

Can Square change its fees without warning?

Square can change its standard rates, but it typically provides notice before the change takes effect. Check your email and the Square Dashboard for announcements. Your contract terms specify how much notice Square must give, usually 30 days.

What is the difference between Square's fee and my bank's fee?

Square is the payment processor — it handles the card transaction and deposits money into your bank account. Your bank may charge you a separate fee for the deposit itself, though most do not charge for ACH transfers from Square. Square's fee is what you pay to Square; any bank fee is separate and goes to your bank.