Square is one of the most recognized companies in the point-of-sale software world. Since launching its original reader in 2011, Square has made a name as the go-to POS solution for micro-businesses and small companies. Since then, they’ve grown to offer several different POS solutions that are affordable and accessible for almost any business owner. With so many features and pricing options available, it can be difficult to understand exactly how much using Square will cost you as an individual or business owner.
This guide highlights everything you need to know about Square’s pricing structure and fees. Thus, you can avoid unpredicted surprises when setting up your new POS system.
Keep reading to learn more about Square fees:
How Square calculates fees
When you use Square, you can face two different fee types: a flat fee per transaction and a percentage of the total amount of each sale. Both these fees are outlined in the terms and conditions of Square’s contract that you must agree with when you sign up for the platform. However, knowing how these fees are calculated can help you anticipate and plan for how much using Square will cost you overall.
Let’s look at each fee in more detail.
First, there is a flat fee for each transaction. It’s a fixed fee that remains the same for every payment method you use. The per-transaction fee for each payment type is as follows:
- Credit cards: 2.75% per swipe or 3.5% per transaction if you manually enter the card number;
- Debit cards: 2.75% per swipe.
For example, if you charge a customer $100 using a credit card, you will be charged a fee of $2.75.
Square register fee
Square is one of the most well-known providers of point-of-sale software. Their solution is also one of the most affordable on the market, which makes it suitable for small businesses. The company’s original model allowed business owners to process credit card payments for free, provided they used the built-in card swiper, which was a huge benefit for micro and small businesses.
However, now that Square Cash is available, the company has a new way to make money from its services. And it’s a clever one. The Square register fee is a monthly charge for every single register you use for your business. It’s important to note that this fee is paid monthly regardless of how many times you swipe a card through your register or how many employees you have.
Card readers cash handling fees
Square offers two reader options: the magstripe reader and the chip reader. The reader you choose to use determines the reader fee. Both readers cost $9.99, but the chip reader will also incur a $0.25 monthly fee.
Square’s cash drawer costs $49.99, which is still less expensive than most other brands. If you’re purchasing a magstripe reader and cash drawer, you’ll only have to pay a single fee of $49.99.
However, if you buy the chip reader and cash drawer, your total fee will be $49.99 + $0.25 + $49.99 = $99.98.
Summing up: Is Square worth the cost?
Square is one of the most popular and well-known point of sale systems available today. It’s designed for businesses with limited budgets, limited space, or both. Square’s low fees and simple setup make it an ideal solution for micro and small-sized businesses. You can set up a new account online in minutes and begin accepting credit card payments almost immediately. While there are some fee-related costs to keep in mind, accepting credit card payments through Square can help you increase your customer base and profit. And that’s worth it, right?