How Squarespace Processes Payments and What Happens to Your Money

How Squarespace handles payment processing

Squarespace does not process payments itself. Instead, it connects your store to a payment processor — usually Stripe or Square — that actually collects money from customers and deposits it into your bank account. When someone buys from your Squarespace site, the payment processor charges a fee (typically 2.9% plus $0.30 per transaction for credit cards), and Squarespace may charge its own separate fee depending on your plan.

The money does not go to Squarespace first and then to you. It goes directly from the customer's card to your payment processor, which holds it briefly (usually one to two business days) before sending it to the bank account you connected during setup. This is called a payout, and the timing depends on your processor and your bank.

You control which payment processor Squarespace connects to, and you can switch between them. Stripe and Square are the most common, but some Squarespace plans also support PayPal. Each processor has different fee structures, so comparing them before you launch matters.

Key Takeaways

• Squarespace connects to a payment processor like Stripe or Square, which collects money from customers and sends it to your bank account — Squarespace itself does not hold the funds.
• Payment processor fees are typically 2.9% plus $0.30 per transaction for credit cards, and these are deducted before money reaches your bank.
• Payouts usually arrive in your bank account one to two business days after a customer pays, though timing depends on your processor and bank.
• You choose which payment processor to use during Squarespace setup, and you can change processors later if you want to compare fees or features.
• Squarespace may charge its own additional fee on top of processor fees, and the amount depends on which plan you are on.

Setting up a payment processor with Squarespace

When you create a Squarespace store, the setup wizard asks you to choose a payment processor and connect a bank account. You will need a U.S. bank account (checking or savings) and a valid Social Security Number or EIN to complete this step. Squarespace uses this information to verify your identity and set up direct deposit.

If you choose Stripe, you create a Stripe account through Squarespace's interface — you do not go to Stripe's website separately. The same applies to Square. This keeps everything in one place, but it also means your processor account is tied to your Squarespace site. If you cancel Squarespace, you will need to migrate your processor account or set up a new one elsewhere.

You can change your payment processor after launch, but doing so may interrupt payouts for a few days while the new processor verifies your account. Plan processor changes for a slow sales period if possible.

Understanding payment processor fees

Stripe and Square both charge a percentage of each transaction plus a flat fee. For a typical credit card purchase, you pay 2.9% of the sale amount plus $0.30. On a $100 sale, that is $3.20 in processor fees. These fees are automatic — they are deducted from the payout before money reaches your bank.

ACH transfers (when a customer pays by bank account instead of card) usually cost less — often 1% with a $0.30 minimum. Digital wallets like Apple Pay and Google Pay typically use the same rate as credit cards. International cards may have higher fees, sometimes 3.9% plus $0.30.

Squarespace itself may add a transaction fee on top of the processor fee, depending on your plan. Basic plans often have no additional Squarespace fee, but higher-tier plans may charge a small percentage. Check your plan details to see what Squarespace charges separately from the processor.

When money arrives in your bank account

After a customer completes a purchase, the payment processor holds the funds for a brief period — usually 24 to 48 hours — before sending a payout to your bank. This holding period is called the settlement period, and it exists so the processor can verify the transaction is legitimate and the customer's card was not declined.

Once the processor initiates the payout, your bank takes another one to two business days to receive and deposit it. So from purchase to your account, the total time is usually two to four business days. Weekends and holidays extend this — a purchase made on Friday may not arrive until Wednesday.

You can check payout status in your Squarespace dashboard under Payments. The dashboard shows pending payouts, completed payouts, and the exact date money should arrive. If a payout is delayed beyond the expected window, contact your payment processor (Stripe or Square) directly — Squarespace cannot speed up bank transfers.

Handling failed payments and refunds

When a customer's card is declined, Squarespace shows an error message on the checkout page and the transaction does not complete. The customer can try again with a different card or payment method. No money changes hands, and no fee is charged for a failed attempt.

If you issue a refund after a successful purchase, the processor reverses the transaction and returns the money to the customer's original payment method. The refund appears in the customer's account in one to three business days, depending on their bank. You do not get the processor fee back — if you refunded a $100 sale, you lose the $3.20 fee even though the customer received $100.

You can issue refunds through your Squarespace dashboard. Go to the order, click Refund, and choose whether to refund the full amount or a partial amount. The refund is processed immediately, but the customer's bank may take several days to post it.

Protecting yourself from fraud and chargebacks

A chargeback happens when a customer disputes a charge with their bank instead of asking you for a refund. The bank reverses the transaction, takes the money back from your processor, and charges you a chargeback fee (usually $15 to $100). You lose the sale amount plus the fee.

To reduce chargebacks, use clear product descriptions, confirm order details in confirmation emails, and respond quickly to customer inquiries. Squarespace stores include basic fraud detection, but you should also check orders for red flags — multiple purchases to different addresses in a short time, or orders from countries you do not ship to.

If you receive a chargeback, your processor will notify you and give you a window (usually 7 to 10 days) to respond with evidence. Save order confirmations, shipping receipts, and customer communications. If you can prove the customer received the product or service, the processor may reverse the chargeback.

Comparing Stripe and Square on Squarespace

Both Stripe and Square offer similar rates on Squarespace — 2.9% plus $0.30 for credit cards. The main differences are in features and customer support. Stripe offers more detailed reporting and integrates with more third-party tools. Square has a simpler dashboard and includes point-of-sale features if you also sell in person.

Neither processor is objectively better; the choice depends on what matters to you. If you plan to sell both online and in a physical location, Square may be easier because you can manage both channels in one account. If you need detailed analytics or plan to integrate with accounting software, Stripe may be more flexible.

You can test both by setting up a test store or by reading their documentation on Squarespace's help site. Once you choose, you can switch later, though there will be a brief gap in payouts while the new processor verifies your account.

Frequently Asked Questions

What happens if my bank account information is wrong?

Squarespace will attempt to deposit money to the account you provided. If the account number or routing number is incorrect, the deposit will fail and the money will be held by your processor. Contact your processor immediately with the correct account details. They can retry the deposit, usually within a few business days.

Can I receive payouts to a business account instead of a personal account?

Yes. Both Stripe and Square accept business bank accounts. You will need to provide an EIN (Employer Identification Number) instead of a Social Security Number during setup. The process is the same as with a personal account.

Do I pay fees on refunds I issue?

No. When you refund a customer, the processor reverses the original transaction and you do not pay the transaction fee again. However, you do not get the original fee back — it is kept by the processor as part of the cost of processing the sale.

What if I want to use a payment processor that is not Stripe or Square?

Squarespace limits you to Stripe, Square, or PayPal depending on your plan. If you need a different processor, you would need to use a different e-commerce platform. Some Squarespace plans do support PayPal as an additional option alongside Stripe or Square.

How long does it take to set up payment processing?

Stripe and Square verification usually takes 24 to 48 hours after you submit your information. During this time, your store is live but customers cannot complete purchases. Once verification is complete, you can start accepting payments immediately.