On Square's free plan in the US, card payments cost 2.6% plus 15 cents in person and 3.3% plus 30 cents online or by invoice. Square Plus and Premium lower those rates, to 2.5% or 2.4% in person and 2.9% plus 30 cents online, in exchange for a monthly fee per location.
Square has moved to three plans, Free, Plus and Premium, and the card rates now depend on which one you're on. That makes the old 'Square charges X%' answers out of date. Here's the current table from Square's own fee page and what it means for a small business.
Square processing fees by plan
| Payment type | Square Free | Square Plus | Square Premium |
|---|---|---|---|
| Tap, dip or swipe (in person) | 2.6% + 15 cents | 2.5% + 15 cents | 2.4% + 15 cents |
| Online or invoice (card) | 3.3% + 30 cents | 2.9% + 30 cents | 2.9% + 30 cents |
| Online API | 2.9% + 30 cents | 2.9% + 30 cents | 2.9% + 30 cents |
| Manual entry or card on file | 3.5% + 15 cents | 3.5% + 15 cents | 3.5% + 15 cents |
| ACH via invoice | 1%, 1 dollar min | 1%, 1 dollar min, 10 dollar cap | 1%, 1 dollar min, 10 dollar cap |
| Afterpay | 6% + 30 cents | 6% + 30 cents | 6% + 30 cents |
| Cash or check | No fee | No fee | No fee |
The plans themselves cost 0 dollars, 49 dollars and 149 dollars a month per location, according to Square's pricing page.
Worked examples
These sums are mine, worked from Square's published percentages. A 100 dollar in-person sale on Square Free costs 2.6% plus 15 cents, which is 2.75 dollars. The same 100 dollar sale paid online or by invoice on Free costs 3.3% plus 30 cents: 3.30 dollars plus 0.30 dollars, so 3.60 dollars. On Plus, that online sale drops to 2.9% plus 30 cents, which is 3.20 dollars.
The catch: tax and tips are included
This is the one that surprises people. Square says processing fees are taken from the total amount of each transaction, including tax and tip. So if a customer adds a generous tip, you pay the percentage on the tip too. Price that into your margins, especially in hospitality.
Other fees to know
- International cards: an extra 1.5% international transaction fee.
- Manually typed card numbers: 3.5% plus 15 cents, higher because the card isn't present.
- Square Gift Cards: a 2.5% load fee, waived on Square Premium.
- EBT for SNAP-eligible items: 1.8% plus 5 cents.
- Bitcoin payments: 0% until 2027.
Is Square Plus worth it?
It depends on volume. Plus cuts in-person rates by a tenth of a percentage point and online rates from 3.3% to 2.9%, but costs 49 dollars a month per location. On online sales alone, the 0.4 point saving means you'd need a lot of monthly online volume before the savings cover the fee, unless you also want the extra features in the plan. Run your own last three months through the table before switching; don't upgrade for the rate cut alone.
Ways to keep Square fees down
- Take cards in person where you can; it's the cheapest card rate on every plan.
- Avoid typing card numbers in by hand, which costs 3.5% plus 15 cents.
- For larger invoices, offer ACH bank transfer at 1% with a 1 dollar minimum.
- Accept cash or checks where it suits you; Square doesn't charge for them.
- Review your plan every few months against your real sales mix.
If you run a café or salon, look at tips in particular. Because the fee applies to the whole transaction including the tip, a busy tipping day raises your processing cost even though the tip goes to staff. Some businesses factor that into how they set prices; whatever you decide, know it's happening.
None of these will turn Square into a free service, but on a busy month the difference between keyed-in and tapped cards, or card and bank transfer on big invoices, adds up to real money.
How to check your own Square rate
- Sign in to Square Dashboard.
- Go to Settings, then Account and Settings, then Pricing and subscriptions.
- Use the Main account filter to pick a location.
- Scroll to Processing Fees to see the rates on your plan.
Square notes that rates can vary by plan type, and older legacy plans have different categories, so this is the only place that shows your exact numbers.
My verdict
For a small business taking mostly in-person payments, Square Free at 2.6% plus 15 cents is a fair, simple deal. If you invoice or sell online a lot, the free plan's 3.3% adds up, and that's when Plus may pay for itself. Compare with Stripe vs Square, what card processing really costs and Stripe alternatives.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
Frequently asked questions
What are Square's fees?
On Square Free in the US: 2.6% plus 15 cents in person, 3.3% plus 30 cents online or by invoice, and 3.5% plus 15 cents for manually entered cards. Plus and Premium have lower in-person and online rates.
Does Square charge a monthly fee?
Square Free is 0 dollars a month per location. Square Plus is 49 dollars and Square Premium 149 dollars a month per location.
Does Square take fees on tips?
Yes. Square says processing fees are taken from the total amount, including tax and tip.
How much does Square charge for invoices?
Card payments on invoices cost 3.3% plus 30 cents on Free and 2.9% plus 30 cents on Plus and Premium. ACH bank transfers cost 1% with a 1 dollar minimum.
Does Square charge more for international cards?
Yes. Square adds a 1.5% international transaction fee on top of the base rate.
Why is a keyed-in payment more expensive on Square?
Square says manually entered payments carry more risk because neither the card nor the cardholder needs to be present, so they cost 3.5% plus 15 cents.
Where does Square show the exact rates for an account?
In Square Dashboard under Settings, Account and Settings, Pricing and subscriptions, filtered by location.
Does Square charge for cash payments?
No. Square doesn't charge fees for cash, check or other tender payments.
