Square is one of the most popular payment processors for small businesses, especially those that do in-person work. But the fees aren't as simple as the "2.6% + 10 cents" on the homepage. Here's the full picture.

Square Fee Structure

In-Person (Tap, Dip, Swipe)

2.6% + $0.10 per transaction

Online (Square Online, Payment Links, eCommerce API)

2.9% + $0.30 per transaction

Manually Keyed-In (Card Not Present)

3.5% + $0.15 per transaction

Invoices

3.3% + $0.30 per paid invoice (card payment)
1% ($1 minimum) for ACH bank transfer on invoices

Cash App Pay (Through Square)

2.6% + $0.10 (same as in-person tap)

What Square Fees Look Like in Practice

In-Person Payments (2.6% + $0.10)

Payment	Fee	You Receive	Effective Rate
$25	$0.75	$24.25	3.0%
$50	$1.40	$48.60	2.8%
$100	$2.70	$97.30	2.7%
$250	$6.60	$243.40	2.6%
$500	$13.10	$486.90	2.6%
$1,000	$26.10	$973.90	2.6%

Online/Invoice Payments (2.9% + $0.30 or 3.3% + $0.30)

Payment	Online Fee	Invoice Fee
$100	$3.20	$3.60
$250	$7.55	$8.55
$500	$14.80	$16.80
$1,000	$29.30	$33.30

Other Square Fees

Chargebacks

No chargeback fee. Square absorbs the dispute fee (unlike Stripe's $15). However, if you lose the dispute, you lose the payment amount.

Instant Deposits

1.75% of the deposit amount
Standard deposits (1-2 business days) are free

Hardware

Square Reader (magstripe): Free (first one)
Square Reader (contactless + chip): $49
Square Terminal: $299
Square Stand: $149
Square Register: $799

Monthly Software Fees

Square POS (basic): Free
Square for Restaurants: $60/mo
Square for Retail: $60/mo
Square Appointments: Free for individuals, $29/mo for teams

Square vs. Other Processors

Processor	In-Person	Online	Fee on $200 (Online)
Zelle	N/A	Free	$0
Venmo Biz	N/A	1.9% + $0.10	$3.90
Square	2.6% + $0.10	2.9% + $0.30	$6.10
Stripe	2.7% + $0.05	2.9% + $0.30	$6.10
PayPal	2.29% + $0.09	2.99% + $0.49	$6.47

When Square Makes Sense

You do in-person work. Square's in-person rate (2.6% + $0.10) is competitive, and the hardware is affordable.
You want an all-in-one system. POS, invoicing, appointments, payroll, and banking in one ecosystem.
You need a free POS. Square's basic POS app is genuinely free.
You want no monthly fees. Pay only when you process a payment.

When to Consider Alternatives

You only need to collect payments remotely. Square's online rate is the same as Stripe. If you don't need the POS or hardware, you're paying for an ecosystem you won't use.
Your clients prefer Venmo or Zelle. Square only accepts cards and Cash App Pay. Clients who want to pay through Venmo or Zelle can't.
You want lower fees. Venmo Business (1.9%) and Zelle (free) are significantly cheaper than Square for remote payments.

How to Reduce Your Square Costs

The smartest move: use Square for in-person payments where card acceptance matters, and offer cheaper methods for remote payments.

Payable.at lets you create a payment page with Venmo, PayPal, Zelle, and credit card (via Stripe Connect). For remote payments, clients who want to avoid card fees choose Venmo or Zelle. For in-person work, you keep your Square reader.

This hybrid approach saves you money on every remote transaction while keeping in-person convenience.

Square Fees: The Real Cost Breakdown (2026)