Square is a widely-used payment processing platform that offers businesses of all sizes a convenient way to handle transactions. However, understanding the associated costs is crucial to managing your business effectively. Here’s a detailed breakdown of Square’s fees, including monthly charges, credit card processing costs, and how to pass these fees onto customers.

How Much Does SquareUp Charge Per Month?

Square provides a variety of subscription plans designed to cater to different industries, each with its unique set of features:

• Square for Retail: This plan starts at $60 per month per location. It’s tailored for retail businesses, offering advanced inventory management, employee tracking, and robust sales reporting.
• Square for Restaurants: Similarly priced at $60 per month per location, this plan is ideal for the food and beverage industry, with features such as table management, menu customization, and 24/7 customer support.
• Square Appointments: Designed for service-based businesses like salons and spas, this plan begins at $50 per month for up to five employees, providing tools for online booking, automated reminders, and client management.

How Much Does SquareUp Charge for Credit Card Transactions?

Square’s transaction fees vary based on how the payment is processed:

• In-Person Transactions: The fee is 2.6% plus $0.10 per transaction. This applies to payments where the card is physically swiped, dipped, or tapped.
• Online Transactions: For payments made online, such as through an e-commerce store or online invoicing, Square charges 2.9% plus $0.30 per transaction.
• Manually Entered Transactions: If the card details are manually keyed in, such as over the phone, the fee increases to 3.5% plus $0.15. This higher fee reflects the added risk associated with card-not-present transactions.

How Do I Charge Customers a Processing Fee on Square?

If you’re looking to pass the processing fees onto your customers, commonly known as a "surcharge," Square allows for this, but the process is manual. You would typically increase the transaction amount by the percentage of the fee. For example, for in-person transactions, you might add 2.6% to the total bill.

It's important to note that Square does not have an automated feature to add these fees at checkout. Instead, businesses often build these costs into their pricing or apply a service fee at the time of purchase. Additionally, you must adhere to local laws regarding surcharges, as they can vary by state and country. Always communicate any additional fees clearly to customers to avoid misunderstandings.

Additional Costs to Consider

Beyond the basic transaction fees, Square also charges for certain additional services:

• Instant Transfers: For a 1.5% fee, Square allows businesses to instantly transfer funds to their bank account instead of waiting for the standard deposit schedule.
• Chargeback Fees: If a customer disputes a charge, Square charges a $20 fee per occurrence to cover administrative costs.
• Hardware Costs: If you need physical hardware, such as card readers or POS systems, Square offers a range of options, from a basic magstripe reader available for free to more advanced setups like the Square Terminal ($299) and Square Register ($799).

Conclusion

Square’s fee structure is generally competitive, especially for small to medium-sized businesses. Whether you’re processing payments in person, online, or through a manual entry, it’s essential to factor in these costs when setting your pricing strategy. Additionally, while passing fees onto customers is an option, it requires careful implementation to stay within legal boundaries and maintain customer satisfaction.

By understanding Square’s charges—both monthly and transactional—you can better manage your expenses and optimize the benefits that Square offers to your business.